Around 60 per cent of over 250 banks in more than 90 countries are moving towards greater digitalisation, according to the annual survey of the International Chamber of Commerce (ICC).
The 10th annual Global Survey of the ICC also showed only 9.0 per cent of these banks say that technology solutions have so far increased efficiency.
The survey report titled ‘Global Trade: Securing Future Growth’ was released last month in Paris, said a press statement of the World Business Organisation (WBO).
“Only 9.0 per cent of banks reported that the solutions implemented have so far led to a reduction of time and costs in trade finance transactions,” it said.
“In what the report describes as a ‘reality check’, 30 per cent of respondents say their banks remain 1-2 years away from implementing technology solutions while 7.0 per cent say digitalisation is not on their agenda at all,” it added.
“A heavily paper-based industry with transactions worth over US$9.0 trillion in 2017, trade finance is often noted to be ripe for digital disruption,” the press statement continued.
The multitude of documents and players like banks, customs authorities, shippers, and insurers involved in trade finance transactions make it difficult for the industry to digitalise quickly.
The estimated global value of trade finance transactions was $9.0 trillion processed by the survey respondents- over 250 banks in more than 90 countries.
90 per cent of trade finance is provided by 13 banks, or 8.0 per cent of Global Survey respondents.
