Innovation in trade finance …„citing developments are taking place in trade finance at the moment† for the first time in a while, there are real signs of innovation in this area of banking. Innovation always emerges from adversity and never ‰rogress before has this area of banking faced such challenge and competition. If you follow current thinkers and industry Innovation in trade finance goes back to the ‰hoenicians in around Š‹ŒŒ participants, predictions are awash about how FinTech bce who founded maritime transport on companies are eating the major banks’ breakfast, lunch, a commercial scale and re established long distance trade dinner and snacks. between …gypt and Žesopotamia. The merchants of ‘enice Increasing Further are another prime e„ample of innovation† they introduced cost of capital operational costs th We are living in a world of sustained low  dollar  factoring in the Š’ century and such practices continue interest rates, bringing into uestion the transaction to be used in the current day. banking model which was conceived to replace balance The mid Š““Œs were a watershed moment for many sheet growth with fee driven growth. There is a lot of industries, given the dawn of the internet and mass discussion about how regulation is muting the trade finance $ telecommunication. ”evertheless, banks and other industry by increasing the cost of capital, generating further long established financial institutions were slow to operational costs for banks and hiking the cost of client Increasing cost incorporate such technologies into their business contact including acuisition and servicing. €ll this is Low USD of client contact models due to cumbersome, legacy IT infrastructure. taking place in a world where fees are either flat or interest rates (acquisition and servicing) declining, and banks are witnessing lower returns and even negative jaws in some cases. Innovation in trade finance goes back to the ‰hoenicians in around Innovation always emerges from adversity bce. Š‹ŒŒ and never before has this area of banking faced such challenge and competition. This lethargy in banking and financial services spawned a vibrant FinTech revolution, with companies such as •olero ƒonseuently, some banks are uestioning the models and …–ƒ— coming up with solutions to client challenges like used to estimate the returns needed to recoup the large multi bank access, •ill of –ading dematerialisation and investments made on e„pensive platform replacements document preparation, to name but a few. and new operating models. ‡ of ˆ