Gartner Research

Trade Finance Must Change

Published: 09 December 2008

ID: G00163571

Analyst(s): Douglas McKibben


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

©2021 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Become a client

Learn how to access this content as a Gartner client.