Transaction central support12/13/2023 ![]() ![]() Global Finance uses a proprietary algorithm with criteria-such as knowledge of local conditions and customer needs, financial strength and safety, strategic relationships and governance, competitive pricing, capital investment and innovation in products and services-weighted for relative importance. The winners are not always the biggest institutions, but rather the best: those with qualities that companies should consider most carefully when choosing a provider. The winners are those banks and providers that best serve the specialized needs of corporations as they engage in cross-border trade. ![]() In many cases, entrants are able to present details and insights that may not be readily available to the editors of Global Finance. It is not necessary to enter in order to win, but experience shows that the additional information supplied in an entry can increase the chance of success. This year’s ratings, which cover 102 countries and eight regions, were based on performance during the period from the fourth quarter of 2019 through the third quarter of 2020. The editors also consider entries submitted by financial services providers, as well as independent research, taking into account a set of objective and subjective factors. Global Finance editors select the winners for both the Trade Finance Awards and the Supply Chain Finance Awards with input from industry analysts, corporate executives and technology experts. The regional and global winners of the 21st annual Global Finance World’s Best Trade Finance Providers are the banks we judge to be the leaders in developing and taking advantage of new capabilities while also monitoring global trends to deliver key insights on both trade and finance to their clients. New global awards were added this year in two categories: Best New Measures to Support Trade Finance Customers During Pandemic and Best Development Bank in Trade Finance. The range of solutions, improvisations and transformations that the best trade finance banks adopted last year are reflected in the selections made by the editors of Global Finance, with input from industry analysts, corporate executives and technology experts, across 102 countries and eight regions. “What is different now is the fact that necessity is intensified,” says Pakcan. What saved the day for many, however, were simple technology solutions that have been around for decades, such as electronic signatures and application programming interfaces that improve connectivity between banks and their client companies. Providers’ readiness and ability to switch to more automated processes varied widely but some made significant investments in technology and implemented cutting-edge solutions like blockchain, artificial intelligence, machine learning and robotics. When staff are working remotely and socially distancing, obtaining wet signatures is inefficient and transaction flow slows down. Since trade finance is highly regulated and paper-based, processes can be repetitive and manually intensive. Banks and other providers embraced digitization strategies and introduced efficiencies into their processes that ultimately lowered costs, helped corporates manage their balance sheets and attracted new investors. Technology, in some cases, furnished solutions. “How does the bank, as the intermediary, help a company build that trust?” “Trade is essentially all about trust, and many of the banking propositions are around those instances where the trust isn’t there,” says Ebru Pakcan, global head of trade on the Treasury and Trade Solutions team at Citi. Among their biggest challenges were understanding tax implications and export-import regulations-and establishing their reputations in new arenas. Some companies had to expand their supply chains and find new sources. In any crisis, there’s an immediate demand for liquidity and at the start of the pandemic, governments and central banks stepped in with liquidity for the markets.Īs one issue dissipated, however, another started. Goods nevertheless continued to move across borders, however, thanks in large part to fast action by authorities. Legacy platforms and archaic paper-based processes still in place at most trade finance providers created additional obstacles. Corporate entities and banks struggled with liquidity issues, supply chain disruptions and payment delays. Trade finance bore the full force of the institutional crises inflicted by the coronavirus pandemic. ![]()
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