Trade Finance Market - Drivers of Change
Drivers of change in the trade finance market.
Emergence of Clearing Houses
- One factor driving the growth of the trade finance market is the emergence of clearing houses.
- Clearing houses are establishments that "act as an intermediary between sellers and buyers of financial instruments." They ensure that the transaction between both parties involved is seamless.
- In addition, they assist in making sure desired products are delivered to buyers in the promised quality and quantity.
Development of Technologies
- Another change driving the growth of the market is the increased development of technologies like QR codes, optical character recognition (OCR), and radio frequency identification (RFID).
- These technologies are used to pin point shipments, read container numbers, and trace blockchain.
- They also help enhance digitization of trade documents.
- Our initial research focused on two growth drivers in the trade finance market.
- More information is available on the global trade finance market, rather than a specific region or country, like the US market. This, we suggest focusing on the global market.
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