How can banks use AI and digital rails to cut trade finance inefficiencies?

It can reduce compliance burdens, but only if they are designed to be simple, trusted, and interoperable. 

At the Asian Banking & Finance and Insurance Asia Summit in Singapore, industry leaders warned that whilst technology and sustainability are reshaping trade finance, both banks and businesses risk falling behind if adoption fails to keep pace. 

The panel, moderated by David Zhang, Regional Market Insight Manager, Services, Euromonitor International, agreed that digital platforms and AI can solve inefficiencies and reduce compliance burdens, but only if they are designed to be simple, trusted, and interoperable. 

As Shivkumar Seerapu, ING’s Head of Transaction Services for Asia Pacific, put it: “Some consortia of multibanks, some individual platforms, which were very popular, failed because of lack of adoption, and that’s now created some doubts,”

The challenge, he argued, is to restore confidence through trustworthy, bank-neutral digital rails—an issue that cuts across efficiency, sustainability, and competitiveness.

Singapore’s trade flows are vast—exports alone amount to 92% of GDP, compared to a global average of just 25%. 

Yet many corporates and SMEs still rely on manual processes, paperwork, and siloed systems, leading to errors and inefficiencies. 

For smaller firms, the challenge is more basic: access to finance and the ability to meet sustainability requirements. 

Standard Chartered’s Eugenia Koh warned that “78% [of corporates] said that SMEs threatened their net-zero commitments by 2050, and some as close as 2030," Without standardised, accessible tools, she cautioned, SMEs risk being cut out of global supply chains altogether.

Banks are now betting on advanced analytics and AI not just to cut costs, but to change how trade risk is managed. 

ING has deployed generative AI to automate transaction profiles, cutting front-office time by 50%, whilst its ESG.X platform tracks the transition journeys of 2,000 clients. 

“It cannot be about just cost savings and efficiency,” said Seerapu. “Advanced analytics and AI are a strategic enabler for risk management and enhanced client experience," 

Maybank, meanwhile, is building out cloud and OCR-based platforms through a five-year partnership with Microsoft Azure.

Looking ahead
The panelists also pointed the rise of alternative capital and embedded ecosystems. 

Private credit funds, family offices, and even retail investors are beginning to treat trade finance as an investable asset class. 

At the same time, fintech collaborations—such as Maybank’s tie-up with procurement ERP providers in the food industry—are integrating financial flows directly into supply chain platforms. 

“We can now imagine an ecosystem where banks, non-bank capital, and fintechs come together,” said Seerapu. “That will democratise trade finance a lot more,"