Gartner Research

Trade Finance Must Change

Published: 09 December 2008

ID: G00163571

Analyst(s): Douglas McKibben

Summary

Commercial customers seek to more tightly manage supply chain costs and working capital financing. In a world in which international trade is primarily conducted on open-account terms, banks that maintain a parochial view of trade services anchored in letters of credit will lose their relevance.

Table Of Contents
  • Overview
  • Background
    • Financial Crisis Heightens Need to Change
    • Open-Account Terms on the Rise
  • Bank Relevance Threatened
  • Where to Begin
  • Transforming Trade Services Requires More Than Online Templates
    • Banks Must Understand and Support Physical and Financial Supply Chain Linkages
  • Banks Evolve Toward New Trade Service and Finance Strategies
  • Outsourcing
    • Benefits of Outsourcing Trade Services
  • Conclusion
  • Recommendations

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