"A survey conducted in 2016 found that banks had to spend more than $60 million on due diligence measures."
While digitalised industries are strengthening economies, technological advances are putting trade finance in the spotlight. Traditional debt finance - bank loans, overdrafts, Letter of Credits (LCs), export credit and insurance, account for roughly 80% of financing for world trade. However, due to strict collateral needs and credit history checks, 50% of SMEs funding applications are rejected by banks. This has resulted in a $1.5 trillion gap in trade finance.