The transaction finance industry continues to thrive in spite of operational challenges and technological innovation. The extraordinary demand for liquidity by corporates and the need to switch business functions to virtual channels have made way for the most trying business environments.
The industry players continue to re-think the economics of their core transaction products and operating business as many shift focus to strengthen sources of fee income by substituting the loss of net interest income amid subdued margins. From a trade and supply chain perspective, the emergence of alternate supply chains and markets are driving players to look at new financing propositions as institutions tap into the value chain of corporates and their suppliers. In supply chain finance, several small-scale and nimble fintechs are now starting to approach a significant scale.
On the other side new opportunities for customer wallet expansion, retention and preservation of the business franchise are now predicated on the ability to support end-to-end digital journeys on integrated platforms. Some players are utilising application of fintech, advanced tech and third-party ecosystems through open APIs to re-engineer credit, and spearheaded initiatives to automate treasury and trade functions. As regional players start deploying best practices of blockchain technology in trade finance there is a notable transition from proof-of-concept to aspects of commercialisation, especially as the industry mulls the collective adoption of several trade platforms to drive standardisation in processes.
The Transaction Finance Awards programme evaluates the achievements of financial institutions in cash management, payments and trade finance across Asia Pacific, the Middle East and Africa. We have revamped the scorecard to capture quantitative achievements in the period under review. This is to benchmark your institution more efficiently as well as cut the ‘noise in digitalisation’. A corporate customer advocacy survey was also launched for your customers in key markets, which will substantially corroborate our benchmarking practice.
The Asian Banker Transaction Finance Awards Ceremony 2021 will be held virtually and will also include a dialogue with the business heads of transaction finance in attendance. We will hear about challenges, insights and lessons from each player in meeting the financial and non-financial needs of corporate and FI customers during the pandemic.