More than just money: Digital technologies can help narrow the trade finance gap
Trade finance provides exporters and importers with effective tools to manage working capital and reduce risks related to trading across borders. Around 40% of global international trade is financed by banks through trade finance transactions such as letters of credit, loans, and guarantees. There are around $1.5 trillion of rejected trade finance applications globally in 2018, which is as much as 8% of global goods trade, according to the recent report, Trade Finance Gaps, Jobs, and Growth Survey. The Asia-Pacific region accounts for 40% of the total rejection.