Integrated financing is revolutionized in global trade, making financing simple like a click, and enabling small and medium -sized companies that were previously secured by traditional systems.
Imagine a world in which access to commercial financing is simple like clicking the button, smoothly woven in the online trade fabric. This is not a far future; It is a promise of integrated financing (EF), and turns world trade.
Traditional commercial financing is often slow, complex and difficult, leaving many small and medium enterprises (SMES) struggling to secure financing. EF provides billions of dollars in a possible opportunity to simplify transactions and enable companies. By integrating financial services into non -financial platforms, EF allows companies to access financing options such as billboards or supply chain financing at the treatment point.
The shift in how to purchase goods and services and pay their price driven by the growth of e -commerce and infrastructure governed by the rules of the application programming interface (API). Application interfaces, Blockchain, and artificial intelligence (AI) are the basic techniques behind EF. Actual time programming facades allow for data sharing and rapid credit approvals, Blockchain guarantees the safety of transactions, and artificial intelligence leads to risk assessment of faster financing. Artificial intelligence also increases access to small and medium -sized companies, whether by integrating EF into e -commerce platforms or providing business services (B2B) now, pays subsequent services.
Indeed, we see the appearance of EF apps such as Plaid and Stripe Treasury. The engraved is connected to the bank accounts and the vehicle’s vehicles. Both enable the real -time data sharing and instant credit decisions, which is very important to financing the guaranteed trade. Fintechs joins large banks such as HSBC, Standard Chartered and Online Giants such as Amazon, Alibaba and Paypal in mining this new line of business.
The visions in the future market offer EF revenues to $ 291.3 billion by 2033, an increase of 63.2 billion dollars in 2023. As EF continues to mature, it has the ability to settle the field of play, enable companies of all sizes to participate in global trade and advance economic growth.
“Project owners build up and create warp, but traditional banks did not last,” Schopevi argued when they united all their financial solutions under the Shopify financing platform last October. In a study of entrepreneurship at Shopify-Gallup for about 47,000 entrepreneurs, 60 % of the lack of funding was ranked as a bigger challenge they face.
To help treat cash shortages in startups, Shopify Balance provides a substitute for traditional commercial banking services, providing merchants to the next day, while Shopify Capital loans provide faster financing for qualified traders, regardless of the size and financial merit.
Shopify is not the only new EF child on the mass. In November 2023, a partnership with Freshbooks, which provides accounting programs based on a group of license to small companies, with you to launch a flexible financing solution for more than 100,000 customers throughout the United States.
These platforms are in a good position for EF because they control the customer’s trip, accumulate rich data on the history of transactions, and can integrate financial services smoothly.
Big banks pick up
EF in e -commerce does not happen in isolation; Traditional financial institutions also realize the opportunity, prompting cooperation between banks and technology because they realize that they can achieve more.
Last October, HSBC launched a joint venture owned, SEMFI, in partnership with Tradeshift, Global B2B, to provide EF Smuele solutions on e -commerce platforms. SEMFI includes HSBC payment and trade solutions via Tradeshift, allowing small and medium -sized company suppliers to access the financing of the digital bill faster and more transparent than HSBC via e -commerce platforms.
Some banks build their banking services platforms as a Baas service. The BAAS platform for the Standard Hartrared, which allows e -commerce partners to submit EF proposals to its customers, has launched the Audax platform, which includes a staple of technology in other financial institutions.
The access to the BNY (TNAS) network aims to simplify the commercial financing of other banks. Instead of managing complex systems for international transactions on its own, banks can connect to a global network via TNAS, which reduces costs and expands their access. This delivery and operation approach makes it easy for smaller banks to provide advanced commercial financing services, which ultimately benefit their customers.
“With the use of risk mitigation and financing services” day after day or from day to day, “says John Kim, global chairman for trade financing, working capital, and portfolio management at BNY Treasury Services.
Although it is not a new concept in commercial financing, the effect of EF can be felt along the chain of transactions, from large financial institutions to financial institutions to their customers.
“From the perspective of growth, if you are considering the regional bank restrictions or the smaller society in an attempt to reach networks that provide international access to a importer or source, this access may lead to direct growth from providing everything that extends to the constituent needs more,” he says. Efficiency and customer service improve when commercial financing is one store with delivery of services without friction ranging from credit letters to commercial distribution.
“Innovation through digitization and cooperation has pushed the industry forward and will only continue with more parties to move away from manual processes,” Kim expects.
Where technology corresponds to trade
Fintech Xalts, based in Singapore, which trained artificial intelligence agents in multiple commercial financing missions including documentary credit, guarantee and groups, has bought the digital trade platform network in early last year to simplify digital communication between banks and companies. XALTS first examines each problem with an agent, then deepens in depth to enter a completely vertical solution for the financing teams.
“We have integrated with the leading banks worldwide and our expertise in commercial financing, we are the only company that builds Amnesty International Vertical agents to solve operational challenges in commerce financing,” says Ashutosh Goel, CEO of XALTS.
“The biggest obstacle to digitization was on commercial financing, thus providing built -in commercial financing solutions, is the manual nature of trade financing.” “With our artificial intelligence agents and now added capabilities (from the contour) to send commercial transactions to banks, we solve the operational challenges that come with the inclusion of commercial financing solutions.”
The Xalts platform is integrated with institutional resource planning programs, accounting systems, logistics and banks, while artificial intelligence agents use models of large language to reduce integration times and costs of any platform. The agents consume data in an unfamiliar way and the results of the operation according to the foundation policies of the foundation.
“This allows institutions to provide new solutions,” Joel continues, “including the financing of integrated trade, smoothly while simplifying operational treatment, because agents can deal with a comprehensive flow in any treatment: including sending transactions to banks.”
The markets were led online when it comes to EF as it seeks to integrate financial services into its ecosystems. Increased customer satisfaction and loyalty also creates liquefaction opportunities.
Amazon and Alibaba offer trade, for example. Amazon offers working capital loans to Amazon sellers through their Amazon lending program and other loan options, including daily progress, cash progress of merchant and bill financing.
Alibaba has made a partnership with lenders, credit rating agencies and banks to provide commercial financing. It also extends the payment conditions up to 60 days for small and medium -sized companies. Likewise, PayPal’s working capital has made a cash progress ranging from 1000 to $ 200,000 to applicants for the first time-or up to $ 300,000 to subsequent applicants-their sales volume in PayPal and the account record.
More digitization and unified commercial documents, along with overlapping operating studies that operate quickly, promise to cancel the EF more capabilities with more offers.
