Digital distribution eliminates inefficient, paper-based processes, improves capital utilization and risk mitigation, and provides liquidity to support clients.
LiquidX, the global fintech solutions provider for working capital, trade finance, and insurance, announced the launch of automated digital distribution technology for trade finance assets. With this launch, banks and asset managers now have a fully digital solution for programmatic, automated origination and distribution of trade finance assets, allowing them to scale, improve returns, and generate costs savings for their trade finance businesses.
Trade finance asset distribution allows banks, asset managers, and other trade finance funders to balance portfolios to meet capital requirements and manage concentration risk, earn returns on assets, and free up liquidity to further support customers. For banks seeking to deploy balance sheet, purchasing trade finance assets is an attractive means of generating new income sources and positive returns.
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According to estimates, $400-$500 billion of bank-intermediated trade finance is distributed annually, predominantly through inefficient, paper-based processes. According to the International Chamber of Commerce (ICC), upwards of four billion documents are moving across the trade ecosystem at any given time, and the lack of digitization slows trade and hampers growth.
With LiquidX, banks and asset managers can initiate single-click trading with their investor networks under existing agreements or to the LiquidX network of over 50 funders using the platform’s built-in legal infrastructure. This enables banks and asset managers to increase their trade finance volumes while eliminating manual processes that are a source of delay, inefficiency, fraud risk, and error.
“The ICC estimates that trade across the G7 could increase by $9 trillion in the next five years with digitization,” said Jim Toffey, CEO of LiquidX. “We are building the complete digital ecosystem that will allow trade to flourish and flow without manual impediments. Now banks and asset managers can originate, distribute, seamlessly access trade credit insurance, and generate better business intelligence – all on the LiquidX platform.”
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