Pace of implementation slowing trade finance innovations
Bruce Proctor, head of Bank of America Merrill Lynch global trade and supply chain finance, questions whether trade finance solutions are being held back by delays in implementing regulations. December 22, 2011 | Wong Wei HanFor Bank of America Merrill Lynch (BAML), trade and supply chain finance is one of the fast-growing sectors where the bank has been strongly committed to. Today, its services and solutions are employed by more than 5,000 multinational corporates in global trade through a consolidated platform supported by a correspondent banking network with over 2,500 banking relationships across the world. From this position, BAML plans to further strengthen its trade finance operations in major developing markets, an initiative highlighted by 13 and 26 key hires in EMEA and Asia respectively within the past year. Bruce Proctor, the managing director and head of BAML’s global trade and supply chain finance group, as well as former head of global trade services at JP Morgan, fully appreciates technology as a key driver of industry developments.However, this is also a venue where he feels market demand has outgrown the rate of solution implementation despite ongoing efforts of SWIFT and International Chamber of Commerce (ICC) to support trade financing by implementing standardised solutions and guidelines for settlement. “The results of ICC/SWIFT collaboration are undeniable, but developments driven by technology have really outpaced the regulatory process of putting in place product and infrastructure improvements,” says Proctor. In Proctor’s view, global regulatory and rule-making bodies such as ICC are held back by size and procedures. “With its defined process of analysis and review, it might take years for these industry bodies to formally certify a trade product or innovation,” said Proctor. “Big corporates simply cannot afford to wait that long, and going forward we will see stronger corporate demand to accelerate the process of implementation.” As that demand grows, corporates may eventually start working with technology providers and set up new standards and platforms—an initiative which Proctor expects to become a major driving force of... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Trade Finance, Transaction BankingTrade Finance,Transaction Banking, Trade Finance,Transaction Banking, Keywords:BAML, Bruce Proctor, SWIFT, International Chamber Of Commerce, Trade Services Utility, Bank Payment Obligation BAML, Bruce Proctor, SWIFT, International Chamber of Commerce, Trade Services Utility, Bank Payment Obligation
|