SIBOS Supersection 2015

Digital trade is a key theme for the corporate forum at SWIFT’s Sibos conference in Singapore in October.

OPPORTUNITY KNOCKS

Digital solutions to facilitate global trade finance have been developing over the past few years, yet uptake is slow. However, with a global trade finance gap of almost $2 trillion in 2014, according to Asian Development Bank figures, digitizing trade finance provision could be key to reducing that gulf.

Also key will be the entrance of new players and new products onto the trade finance scene. Alternative finance—including that provided by institutional investors, crowdfunding sites and other online exchanges—is growing in significance within the trade and supply chain finance space. Although there is little data as yet on how much of an impact the alternative market is making to plug the gap, the advent of innovative new ways to bring together financiers and those in need of finance is a step in the right direction.

Innovation is, as ever, central to the Sibos program and a key driver for the attendance of many, if not most, visitors to the conference. Fintech innovation must grow in a nurturing environment, and cities around the globe—from London to Sydney to New York—are working hard to provide such an environment. With supportive policies to draw in talented individuals and attract investors, these cities are creating the perfect conditions for the development of innovation hubs: Sydney’s Stone & Chalk and London’s Tech City and Level39 are just a few of the many examples from around the globe.

With developed economies set to outperform emerging markets in terms of GDP growth over the next few years, according to the World Bank, it seems fitting that this year’s conference should be set in one of Asia’ key developed markets—and the world’s fourth-largest financial center—Singapore. The country has been a global trade hub since it was first founded in 1819, and its importance in enabling both intraregional and interregional trade will only increase in the years to come, as Asian economies continue to expand their global reach and significance.