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 affecting the digitalization 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.

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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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Videos – TradeTech

TradeTech Podcasts





Featured Insights

Interview: Advance Cargo Information (ACI), eBills of Lading and Single Windows TFG spoke to CargoX about their Blockchain Documentary Transfer (BDT) programme, Advanced Cargo Information and Single Windows
TFG partners up with Surecomp on trade finance digitization webinar London. Trade Finance Global (TFG) is delighted to announce it’s partnership with Surecomp’s latest free webinar: Next Gen Trade Finance Digitization.
Trade digitalization milestones: a series of fortunate events If you blinked and put your feet up this bank holiday weekend, you probably missed out on a few important milestones for digitalizing trade.

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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 modernize 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 modernize 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.
Get started

Latest TradeTech News

08Jun

US$2.5 million investment into Stemly to enable accelerated growth and to pave the way for an independent future

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US$2.5 million raised in seed financing round Elev8, ING, Singapore Economic Development Board (EDB) New Ventures among key investors Singapore/Hong… Read More →

03Jun

G7 pledge to facilitate trade digitisation backed by Surecomp

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Surecomp® announced today that it embraces and is fully equipped to support the G7 move towards digitisation, allowing companies to… Read More →

26May

Interview: Advance Cargo Information (ACI), eBills of Lading and Single Windows

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TFG spoke to CargoX about their Blockchain Documentary Transfer (BDT) programme, Advanced Cargo Information and Single Windows… Read More →

18May

MineHub and Contour partner to drive digitisation in metals and mining industry

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MineHub and Contour have partnered to integrate their digital supply chain and trade finance technology solutions for the global metals… Read More →

17May

TFG partners up with Surecomp on trade finance digitization webinar

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London. Trade Finance Global (TFG) is delighted to announce it’s partnership with Surecomp’s latest free webinar: Next Gen Trade Finance… Read More →

16May

Connecting PowerBi Web to PostgresSQL hosted on AWS Relational Database Service (RDS)

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The problem with connecting PowerBi Web to PostgreSQL hosted on AWS has arisen frequently over the past few years. The… Read More →

05May

Trade digitalization milestones: a series of fortunate events

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If you blinked and put your feet up this bank holiday weekend, you probably missed out on a few important… Read More →

04May

VIDEO: Industry Leader Perspective: The Currency and Cross-border Payments (R)evolution

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Kenneth Wong, Director, Global Transaction Banking, TD Securities, talks about the changing payments landscape, cross-border payments and digital currencies…. Read More →

29Apr

AI to help automate Bank of Africa’s documentary checking, thanks to Conpend and Finastra

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Finastra has announced BANK OF AFRICA, a pan-African financial group, has selected Conpend’s TRADE AI app from its open innovation… Read More →

29Apr

New electronic Bill of Lading introduced by MSC using WAVE BL’S platform

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MSC customers will be able to receive the bill of lading electronically, without any change or disruption to their day-to-day… Read More →

27Apr

Driving better customer service with SWIFT’s new guarantee message standards

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SWIFT’s upcoming SR 2021 release is set to bring some significant changes to trade finance messaging standards – specifically those… Read More →

27Apr

Moving to the cloud: Volkswagon’s TRATON migrates trade finance to improve efficiencies

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Surecomp®, the leading provider of global trade finance solutions for banks and corporates, today announced that automotive multinational TRATON SE… Read More →

23Apr

CargoX authorized by the Egyptian government as Blockchain Provider for ACI Declaration

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Misr Technology Services (MTS), which operates Egypt’s National Single Window for Foreign Trade platform (Nafeza), has authorized CargoX to act… Read More →

22Apr

HSBC and Tata Steel successfully execute a blockchain-enabled, paperless trade transaction – a global first for the steel industry

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HSBC India and HSBC UAE have successfully executed a blockchain-enabled, live trade finance transaction between Tata Steel Ltd. (India) and… Read More →

17Apr

Can we eliminate paper from negotiable instruments and documents of title?

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By integrating the DLPC structure into trace:original documents, the benefits of a payment undertaking supported by BAFT’s best practices can… Read More →

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