TRADE FINANCE | Roxanne Uy, Singapore

Here’s how banks can stand out in a ‘commoditised’ trade finance setting

Find out what DBS’ Ken Stratton and Oliver Wymann’s Jason Ekberg have to say.

ABF: With the trade finance products/solutions “commoditised” to a large extent across the various financial institutions, what are the ways in which banks can differentiate from one another?

DBS: Ken Stratton, Global Head of Sales, Global Transaction Services
Trade has always been a relatively commoditised business, with many banks offering most, if not all, of the traditional trade product suite. Many banks created their own bespoke supply chain finance solutions, which are designed to leverage the partnership between the buyer and supplier without the need for traditional security such as fixed charges or property.

Banks that have been successful in this area have been using proprietary electronic solutions to ensure straight through processing to deliver efficiencies and better manage operational risk. Some banks have also set up specialised structured trade and commodity teams to leverage the intra-Asia trade flows.

Oliver Wymann: Jason Ekberg, Consultant
There are a number of options to consider here:

  • We see players investing in key sectors, e.g., renewables, infrastructure, etc.
  • Focusing on key market flows, e.g., the opening trade windows in key market such as LON
  • Focusing on linking products with adjacencies, e.g., plugging GTB into adjacencies such as project finance
  • Investing in key flows, e.g., commodities
  • Moving towards solution offerings, e.g., liquidity management

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