Digital Technologies Can Facilitate Access to Trade Finance in Asia-Pacific Region
September 18th, 2019 – Financial technologies, such as blockchain and artificial intelligence, can enhance the efficiency and availability of trade finance, especially for small and medium-sized enterprises (SMEs) in the Asia and Pacific region, according to a report launched today by the Asian Development Bank (ADB) and the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
The Asia-Pacific Trade Facilitation Report 2019, highlights the need to address the largely unmet demand for trade finance globally, estimated at $1.5 trillion, of which 40% is from the region. SMEs are the most affected as they tend to have higher rejection rates for trade finance applications, compared with larger firms. SMEs account for 45% of rejected trade finance transactions as their applications tend to incur relatively high costs for banks to comply with anti-money laundering and know-your-customer requirements. Low credit ratings of counterparty banks and companies are other barriers restricting access to trade finance.
More…https://moderndiplomacy.eu/2019/09/18/digital-technologies-can-facilitate-access-to-trade-finance-in-asia-pacific-region/
Written by Modern Diplomacy
Related Post
South African SMEs: Navigating the Path...
The State of South African Small Business 2025 report highlights that SMEs are increasingly the backbone of the national economy, with 83% r...
Energy Prices and Their Impact on...
The structural disparity in electricity costs when compared to the European average is a growing concern for micro and small businesses thro...
First Report by the Observatory on...
The First Report by the Observatory on SMEs and Capital Markets highlights that Italian SMEs increasingly see capital markets as an opportun...
