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Global Trade Finance Market: Overview

Trade finance refers to the process of financing international trade flows. Trade finance assists in diminishing or mitigating the risk associated with international trade transactions. There are two players involved with a trade transaction, one an exporter, and the other one an importer. Trade finance is all about financing for the purpose of trade and it is related to both international and domestic trade transactions. Growing importance of international trade is likely to foster growth of the global trade finance market over the timeframe of analysis, from 2020 to 2030.

Insurance, bank guarantees, export financing, credit agency, receivables and invoice financing, and providing letters of credit (LCs) are all provided by trade finance. Exporters, importers, manufacturers, sellers, and buyers utilize it for the purpose of easing financing activities and it deals in the manner assets, investment, credit, and cash are utilized for trade. The ability to accelerate the procedure of making arrangement of short-term finance is likely to support growth of the global trade finance market in the years to come.

Product, service provider, end user, and region are the four important parameters based on which the global trade finance market has been classified.

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Global Trade Finance Market: Notable Developments

One of the relevant and important developments of the market that gives a quick view of the dynamics pertaining to global trade finance market is mentioned as below:

  • In July 2019, American multinational bank, JPMorgan Chase & Co. acquired leading healthcare payments solutions provider, InstaMed Holdings, Inc. The latter is estimated to function as JPMorgan Chase Bank’s subsidiary. With the acquisition, it is expected that the clients of both JPMorgan Chase and InstaMed will be benefitted from this strategic move

Some of the prominent organizations in the global trade finance market comprise the below-mentioned:

  • Royal Bank of Scotland
  • Bank of America
  • JPMorgan Chase & Co
  • Mizuho Financial Group, Inc
  • BNP Paribas S.A
  • Mitsubishi UFJ Financial Group, Inc

Global Trade Finance Market: Key Trends

The global trade finance market is characterized by the presence of the following restraints, drivers, and opportunities.

Integration of Advanced Technologies into Trade Finance Activities to Boost Demand

The growth of the global trade finance market is likely to be driven by the rising import and export activities across the globe. Integration of latest technologies such as quick response (QR) codes, radio frequency identification (RFID), and optical character recognition (OCR) technologies are likely to bolster growth of the global trade finance market in the forthcoming years. QR codes are used to track and identify shipments and OCR technology is utilized for the purpose of reading numbers of containers. Growing digitization is likely to work in favor of the global trade finance market over the timeframe of analysis, from 2020 to 2030.

Increased implementation of pricing and structuring methods along with strategic development is anticipated to foster development of the global trade finance market over the timeframe of analysis, 2020 to 2030. Utilization of technologies such as internet of things (IoT), machine learning (ML), and artificial intelligence (AI) in commercial finance is likely to augur well for the market in the years to come.

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Global Trade Finance Market: Geographical Analysis

Asia Pacific is estimated to be one of the most dominating forces in the global trade finance market over the timeframe of analysis, from 2020 to 2030. Increased funding from the government is anticipated to add to the development of the global trade finance market over the tenure of analysis, from 2020 to 2030. China is likely to remain at the forefront of the growth of the market in Asia Pacific.

This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.

Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:

  • Customer Experience Maps
  • Insights and Tools based on data-driven research
  • Actionable Results to meet all the business priorities
  • Strategic Frameworks to boost the growth journey

The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.

The following regional segments are covered comprehensively:

  • North America
  • Asia Pacific
  • Europe
  • Latin America
  • The Middle East and Africa

The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.

Below is a snapshot of these quadrants.

1. Customer Experience Map

The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.

2. Insights and Tools

The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.

3. Actionable Results

The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.

4. Strategic Frameworks

The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.

The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:

1. What can be the best investment choices for venturing into new product and service lines?

2. What value propositions should businesses aim at while making new research and development funding?

3. Which regulations will be most helpful for stakeholders to boost their supply chain network?

4. Which regions might see the demand maturing in certain segments in near future?

5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?

6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?

7. Which government regulations might challenge the status of key regional markets?

8. How will the emerging political and economic scenario affect opportunities in key growth areas?

9. What are some of the value-grab opportunities in various segments?

10. What will be the barrier to entry for new players in the market?

Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.

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Trade Finance Market