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Trade Finance & Services: The Emerging Threats and Opportunities for Banks

Trade Finance & Services: The Emerging Threats and Opportunities for Banks

Trade finance banks are at a critical juncture, and Aite Group forecasts they will invest more than $600 million by 2009 on new technologies as they build for the future and position themselves in the marketplace.

Boston, MA, March 16, 2006 – In a new report, Trade Finance & Services: The Emerging Threats and Opportunities for Banks, Aite Group analyzes the business models being adopted as trade finance approaches a turning point. Banks will either leverage their relationships and build for the future or become superfluous in the financing of trade activities. This report highlights how access to information has increased in terms of both volume and timeliness and how new business models are emerging, new players are entering the field, and how technology is being leveraged to make the processes faster, more efficient and more cost-effective.

Global trade is expanding exponentially. Changes in recent years include: the buyer is becoming the power broker and is demanding open account transactions; there is a greater focus on working capital management within companies which leads to heightened interest in the supply chain; significant improvements in the physical supply chain are leading to better communications among trading partners, and; the desire to merge the physical and financial supply chains will provide more efficiency and lower costs.

"Banks should recognize threats but act toward expanding their depth of service," notes Nancy Atkinson, a senior analyst with Aite Group and author of the report. "By building strong and intuitive interfaces with clients and leveraging the information surrounding trade activity, banks will position themselves to retain a dominant role in domestic and international trade."

This is a 41-page Impact Report. Clients of Aite Group's Wholesale Banking service can download the report.