TradeTech

TradeTech | ICC, TFG and WTO Guide

TradeTech

Welcome to the TFG TradeTech hub. International trade and trade finance is going through rapid innovation, thanks to the advancement of both developed and brand new technologies. In the TFG TradeTech hub, we focus on how technologies affect the digitalisation of freight and transport, trade and customs and access to finance. TradeTech can help reduce some of the biggest challenges when it comes to paper documents, access to MSME finance and getting goods from A to B would be easier.

TFG TradeTech hub

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Videos – TradeTech

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Featured Insights

digital trade documents lloyds sponsored feature Lloyds Bank completes first digital trade transaction under new UK legislation Lloyds Bank has completed what it believes to be the first transaction under the UK’s new Electronic Trade Documents Act (ETDA) which came into force today [20 September 2023]. 
TFG to host comprehensive Tradecast on UK’s Electronic Trade Documents Act (ETDA) Trade Finance Global (TFG), in collaboration with UK Export Finance and the Department for Business & Trade, is set to host a tradecast on 13th September 2023, one week before the Electronic Trade Documents Act (ETDA) comes into force. 
The time is now to unlock the future of cross-border payments Cross-border payments can play a special role for people and businesses around the world. They allow us to send money to our loved ones, book a holiday of a lifetime, or start a business in another country. 

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TradeTech – Layers

Tradetech layers

TradeTech – Frequently Asked Questions

What is the definition of TradeTech?

Trade finance technology, often abbreviated as TradeTech, refers to the use of technology, innovation, and software to support and digitally transform the trade finance industry. It is often considered to be a subcategory of the more widely used term, FinTech. TradeTech, which can include several technologies, puts a particular emphasis on the application of technology and software to modernise trade finance.

These technologies include but are not exclusively limited to cloud computing, optical character recognition (OCR), internet of things (IoT), big data analytics, artificial intelligence (AI), quantum computing, distributed ledger technology (DLT) and application programming interface (API).

Who uses TradeTech and what is its role in global trade?

TradeTech can be used by any firm in the international trade ecosystem. While TradeTech applications are often developed by large banks or innovative technology companies, the applications themselves are not limited to this demographic. 

Many micro, small and medium enterprises (MSMEs), however, are often under the impression that technology is simply not for them and view it as complex and costly. This may be due to the idea that some digital trade technology solutions focus more on trying to explain the technology itself rather than simplifying the explanation and service offering to MSMEs, leading to a lack of audience engagement. Continual efforts to make MSMEs aware of the plethora of opportunities available to them are important. Governments may have a role to play in this respect to raise awareness and provide education for MSMEs.

How has the COVID-19 pandemic impacted TradeTech?

The COVID-19 pandemic has rapidly accelerated the development and adoption of many TradeTech applications. Largely, these have come about as a result of a lack of physical employee presence at the usual places of business, coupled with the inability to print and transport documents. Operating under “normal” processes has not been an option. To cope, banks have been forced to create or scale up ad hoc digital processes.

Despite this firm-level acceleration, there have also been indications that many banks have not received significant meaningful support from government authorities to facilitate trade on digital terms. Nevertheless, the desperate necessity for paperless workarounds has set the industry on a digital course.

Does TradeTech include data security?

Absolutely. Given the vast amounts of data that exist today, data security must be treated as a top priority and subsequently exists at the heart of nearly every TradeTech application. For some, like distributed ledger technology, the security of data is at the core of their reason for being. 

For many firms, using TradeTech applications will go a long way towards boosting their data security. This is because TradeTech providers generally operate internationally. In order to do so effectively, the data security standards that they use to protect consumer data must meet the stringent requirements of every region they operate within. For most end-users, this means that their data will be protected to a standard greater than that legally required in their own jurisdiction.  

What is the most prominent technology in trade?

There is a complex interplay between all of the technologies used in trade. Each technology relies on the capabilities of others to deliver its most powerful benefits. Some of them work to collect and deliver data, others analyse and interpret this data, and still others provide the infrastructure which allows this communication to occur. Take, for example, the role of the internet of things (IoT) in this relationship. IoT devices and sensors on their own provide minimal value. However, when they are combined with the secure transmission capabilities of distributed ledger technology (DLT) and the analytical capabilities of big data analytics tools enabled by artificial intelligence (AI), they are able to deliver meaningful and actionable information.

To name one technology as the most prominent would be like deciding which part of a car is the most important. One could argue the engine, or the brakes, or the tires – but it is safe to agree that the car is just better when it has all of these combined together. 

Why is technology in trade so underdeveloped relative to other industries?

Many of the cumbersome processes that exist in trade today have been developed to allow parties to a transaction to trust the outcome of the transaction even if they do not trust their counterparties. Considering that the counterparties are often on opposite sides of the globe and operating in vastly different legal systems, it has been critical to thoroughly develop robust instruments that both parties trust to facilitate these transactions. 

Until recently, the technological tools that could be used simply did not suffice in facilitating this trust – meaning that they were just not good enough to replace the paper processes that were already in place. This led to several decades of technological progress in other industries that effectively bypassed international trade.  

Today, however, with advancements in technology such as distributed ledger technology (DLT), it is finally possible to trust digital mechanisms in lieu of their paper counterparts that have been in use for so long.  

How can TradeTech help inform trade policy?

Most current national regulations do not allow most TradeTech solutions to be widely adopted. This stems from legal concerns, such as the ambiguity of Uniform Customs and Practice for Documentary Credits (UCP) rules, which do not specify whether digital tools such as artificial intelligence (AI) can be used in lieu of humans. As increased developments and proofs of concept demonstrate the efficiencies and power of TradeTech, policymakers around the globe will be forced to modernise their nation’s policy or sit idly by as the global economy moves on without them. 

The United Nations Commission on International Trade Law (UNCITRAL) has already developed a model law that would create an enabling regulatory framework recognizing e-signatures and e-documents – the Model Law on Electronic Transferable Records (MLETR).  The UNCITRAL MLETR has already been adopted by 2 countries – the Kingdom of Bahrain and Singapore. Its adoption by the broader global community is critical to the continual development of TradeTech solutions. 

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Contents

Access trade, receivables and supply chain finance

We assist companies to access trade and receivables finance through our relationships with 270+ banks, funds and alternative finance houses.
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Latest TradeTech News

28Sep

Report: ICC Germany highlights digital solutions to combat trade fraud

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The German branch of the International Chamber of Commerce, ICC Germany, in collaboration with financial technology firm MonetaGo, has released… Read More →

27Sep

Lloyds Bank report highlights transformational changes in UK trade

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Lloyds Bank published its “Trade Insights: The changing face of UK trade” report, offering a comprehensive analysis of the evolving… Read More →

26Sep

CargoX and Enigio collaborate with Lloyds Bank and ICC C4DTI to create blockchain interoperability for electronic trade documents

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Both CargoX and Enigio, who operate as independent providers of electronic trade document solutions, have jointly engineered and successfully demonstrated… Read More →

25Sep

2023 McKinsey Global Payments Report highlights robust growth and future prospects in global payments industry

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A recent report by McKinsey & Company on the global payments industry reveals significant growth and optimistic future prospects. The… Read More →

21Sep

The dark side of trade digitalisation: data inequality and the global economic divide

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As our world becomes increasingly digital, the digital divide has widespread implications, and the least developed countries (LDCs) are most… Read More →

20Sep

Finastra inks Microsoft agreement to enhance trade platform modernisation

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Finastra today announced a multi-year global agreement with Microsoft focused on trade platform modernisation, building on the existing availability of Finastra… Read More →

20Sep

Lloyds Bank completes first digital trade transaction under new UK legislation

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Lloyds Bank has completed what it believes to be the first transaction under the UK’s new Electronic Trade Documents Act… Read More →

19Sep

Visa and Swift announce collaboration to increase transparency, speed and security in global B2B payments

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Visa and Swift today announced a collaboration to streamline international business-to-business (B2B) payments by strengthening connectivity between their networks that… Read More →

19Sep

ACI Worldwide Collaborates with Microsoft to Accelerate Global Move to Real-Time Payments

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ACI Real-Time Payments Cloud Platform, Hosted in Microsoft Azure, Helps Financial Institutions Enable Instant Payments Transactions Faster MIAMI, FL —… Read More →

19Sep

Surecomp’s RIVO™ processes electronic Bill of Lading for Voith and MAN

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Surecomp today announced that its RIVO™ solution is enabling unified electronic Bills of Lading (eBL) processing across various issuers, having… Read More →

18Sep

Lloyds Banking Group invests €3 million in Enigio to enhance the use of digital documentation in trade

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Monday, Lloyds Banking Group announced that they have invested €3 million in Enigio to help expand their use of digital… Read More →

18Sep

Bank of America advances digital transformation in trade finance with CashPro Supply Chain Solutions

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Bank of America is embarking on a multi-year initiative to digitise trade finance through its new platform, CashPro Supply Chain… Read More →

13Sep

TFG to host comprehensive Tradecast on UK’s Electronic Trade Documents Act (ETDA)

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Trade Finance Global (TFG), in collaboration with UK Export Finance and the Department for Business & Trade, is set to… Read More →

12Sep

The time is now to unlock the future of cross-border payments

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Cross-border payments can play a special role for people and businesses around the world. They allow us to send money… Read More →

11Sep

Future-proofing trade finance: The digital transformation journey with ClearEye

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Transitioning from documents to pixels, from cash to virtual payment gateways, and from local markets to international ones, the sweeping… Read More →

About the Author

Deepesh Patel is Editorial Director at Trade Finance Global (TFG). In this role, Deepesh leads efforts in developing TFG’s brand, relationships and strategic direction in key markets, including the UK, US, Singapore, Dubai and Hong Kong.

Deepesh regularly chairs and speaks at international industry events with the WTO, BCR, Excred, TXF, The Economist and Reuters, as well as industry associations including ICC, FCI, ITFA, ICISA and BAFT.

Deepesh is the host of the ‘Trade Finance Talks’ podcast and ‘Trade Finance Talks TV’. He is co-author of ‘Blockchain for Trade: A Reality Check’ with the ICC and the WTO, alongside other industry research.

In addition to his work at TFG, Deepesh is a Strategic Advisor for WOA, and works closely with ITFA. He also sits on the Fintech Working Group of the Standardised Trust.

Prior to TFG, Deepesh worked at Travelex where he was responsible for the cards business and the Travelex Money app in Europe, NAM, UK and Brazil. Deepesh is Chair of Governors and co-opted LA Governor of the Wyvern Federation, which has responsibility for 5 primary schools in South London.

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