Advertisement
Widespread supply chain disruption during the pandemic put a spotlight on outdated trade finance processes. Now, corporates focused on digital transformation are redefining the financial supply chain as a resilient trade ecosystem, according to Sriram Muthukrishnan, Group Head of Trade Product Management, at DBS.
May 25, 2021
Many paper-based processes and physical touch points will soon become a thing of the past for corporates.
Amid the chaos the pandemic created for supply chains, with delayed deliveries and payments, digital solutions became a lifeline for businesses globally. “Companies see the imperative in streamlining complex trade finance processes, and a focused digital approach is essential to creating resilient trade ecosystems of the future,” said Muthukrishnan.
External | what does this mean?
This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.
DBS Bank and Contour broaden digital trade offerings to four new markets in Asia-Pacific 18 hours ago
Source: Contour To further push the digitalisation of trade finance in major trade hubs in the region, DBS Bank has expanded its offerings on Contour’s rapidly growing trade finance network to corporate customers in four key markets in the Asia-Pacific region (APAC). DBS was the first Singapore-based bank to join Contour’s beta network and completed the first fully digital Letter of Credit (LC) transaction on the platform last year. The bank has now moved from Contour’s beta network to its production network to offer streamlined digital LC transactions for customers across Australia, China, Hong Kong and Singapore from this month.
While commodity finance players have been rocked by the effects of Covid-19, the oil price crash and fraud cases in Singapore, business is reportedly booming for blockchain platforms that target the sector. But to what extent can these technology solutions combat fraud, and will the decision by key banks to limit their exposure, or even exit commodity finance altogether, limit their potential to reform the industry?
Felix Thompson reports.
From the large banks left exposed to fraud in Singapore to the smaller traders left struggling to access financing, various players felt the pinch in the commodity finance sector last year.