Supply chain finance (SCF) processes offer business with solutions to help strengthen relationships between buyers and sellers participating in global trade.
Over the past few years, banks have increased their supply chain finance services. Most notably, banks processing the largest volumes of trade finance reported a more than 30% growth in supply chain finance, according to the ICC 2018 Global Survey on Trade Finance. The ICC Global Survey –which interviewed 251 banks across 91 countries — also found that 42% of banks believe that future gains over the next 12 months would come from supply chain finance. These statistics confirm that supply chain finance is a critical topic for banks everywhere.
With supply chains extending across different regions of the world, businesses face increased scrutiny from auditors, rating agencies, and others over the commercial nature of their supply chains. As a result, trade finance professionals must ensure that their supply chains are both secure and stable. Both geopolitical tensions and global economic volatility have shed light on the need for standardisation of terminology, rules and processes relating to SCF, to allow common understanding of the techniques available for widespread adoption.
Other factors for the industry to address include the sustainability and long-term security of supply chains. How can standards, such as the new ISO standards on chain of custody, make supply chain traceability easier?
The 2020 ICC Banking…