ANZ in global banking consortium to digitise trade finance

ANZ Banking Group has joined forces with six global banking giants to create the “Trade Information Network”, which the lenders say will accelerate the digitisation of traditionally paper-based processes to unlock billions of dollars of funding for global exporters.

“The network has the potential to transform international trade,” the banks said in a media release issued on Thursday, ahead of its official unveiling at the massive Sibos conference in Sydney on Monday.

The other members of the new network are: Banco Santander, BNP Paribas, Citi, Deutsche Bank, HSBC and Standard Chartered.

The banks want to develop a new industry standard for trade finance, which has been in a challenging period with revenues sinking, despite high commodity prices, as compliance and fraud risks rise. They say the new network will let them better assess risks and provide trade financing earlier in the supply chain.

Global trade finance amounts to more than $US9 trillion ($12.7 trillion) a year. The system will allow banks to provide financing earlier in the supply chain by enabling exporters to easily and securely communicate trade information directly with lenders.

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Source: ANZ in global banking consortium to digitise trade finance | afr.com