Council Post: Artificial Intelligence Platforms Will Drive The Next Phase Of Trade Finance Growth

Trade finance refers to products and financial instruments used to facilitate the export and import of trade and commerce--and, thereby, the smooth conduct of business. Some of the most popular instruments in trade finance are letters of credit (LC), bank guarantees (BG), documentary collections and remittances. Essentially, these instruments have one primary function: enabling parties to the trade to make a transaction and mitigate the associated risks related to supply and payment. Trade finance drives the global economy. This segment will only grow in the future, notwithstanding temporary setbacks like the Covid-19 pandemic or geopolitical conflicts.