Author: gtrventures

Global News Mail: GTR Ventures makes debut investments in Singapore trade-linked fintechs

Global News Mail

Tue, Mar 13, 2018

Singapore

GTR Ventures, the world’s first investment platform targeted at trade-related fintechs, has closed its first five investments, including in several Singapore fintechs that are taking aim at the US$5 trillion trade-finance gap globally.

It did not disclose the full valuation of each fintech, but the equity positions in the five companies collectively value them at around US$50 million, GTR Ventures said in a media release on Monday.

GTR Ventures is the venture capital arm of trade finance intelligence firm Global Trade Review, and has offices in Singapore, Hong Kong and London.

Singapore-based Kelvin Tan, chief investment officer of GTR Ventures, said that the founders behind these fintech firms are using technology and data analytics to mitigate risks, make lending more efficient, and close the trade finance gap.

“The global trade sector is transforming with digitisation and data-driven infrastructure connecting diverse players across the physical and financial aspects of trade. Our vision is to work with these companies and build strategic first-mover stakes in the future of trade.”

The fintech companies collectively have helped to tie up more than US$160 million in trade loan deals since their inceptions.

They include Singapore-headquartered Culum Capital, which provides companies with working capital funding using trade finance solutions particularly in receivables purchase and supply chain finance.

Another is Singapore-based Trade Finance Market, a fintech that has developed a digital tool to reduce invoice finance fraud.

GTR Ventures said it is working on a “strong pipeline” of additional investments and expects to close five more deals and global partnerships in the next quarter.

This article first appeared on Global News Mail.

XueHua: GTR Ventures宣布首次对五家贸易领域的金融科技公司进行投资

Xue Hua

伦敦和新加坡2018年3月12日电 /美通社/ — 全球首个专门从事贸易和供应链业务的投资与创业支持平台 GTR Ventures,宣布首次对五家贸易领域的金融科技公司 — Tradeteq、Trade Finance Market、Culum Capital、eFundSME 和 Incomlend 进行投资。这些投资为后续的一系列强大交易拉开了帷幕。GTR Ventures 已经由此入股这五家公司,总值为5000万美元左右。

GTR Ventures首席执行官鲁伯特-萨伊尔和首席投资官Kelvin Tan(陈循奕)与五家贸易领域的金融科技公司的创始人,一起大胆重塑未来贸易

在这五家公司中,有四家是数字贸易借贷公司,还有一家是让机构投资者能够获得全球贸易工具的平台,自成立以来,这五家公司已经促成了金额超过1.6亿美元的贸易贷款交易。GTR Ventures 于2017年9月建立,将和这五家公司进行合作,并将通过全球拓展,开发新产品(例如贸易融资指数),以及接入全球数字贸易融资资产市场等方式,帮助发展他们的业务。

Tradeteq(总部位于英国)首席执行官克里斯托夫-古格尔曼(Christoph Gugelmann)说:“我们很高兴能够在 Tradeteq 继续发展的时候与 GTR Ventures 进行合作。这项合作将会帮助我们覆盖贸易生态系统中的所有参与者,加强我们在欧洲的基础,同时支持我们扩展进入包括新加坡、香港、上海和东京在内的亚洲市场。”

GTR Ventures 首席投资官 Kelvin Tan(陈循奕)表示:“全球贸易领域正在为数字化和数据驱动型基础设施所改变,而后者能够连接贸易实物和融资方面的各种参与者。Tradeteq、Trade Finance Market、Culum Capital、eFundSME 和 Incomlend 背后的创始人们利用技术和数据分析来降低风险,让借贷更为高效,弥合贸易融资上面的缺口,以此来推动这一变革。而我们的愿景是与这些公司进行合作,在未来贸易方面构建战略性的先发优势。”

GTR Ventures 首席执行官鲁伯特-萨伊尔(Rupert Sayer)则表示:“贸易领域的形势迅速改变为投资者带来了令人激动的机遇。正像我们首批投资交易所显示的那样,GTR Ventures 现在居于独一无二的有利地位,能够发现出色的投资项目,并能通过建立合作关系和联盟,打造将能塑造未来贸易和贸易融资的全球网络。”

GTR Ventures 正在进行一系列其它卓越投资,预计将在下个季度达成另外五项投资交易和全球合作。

贸易融资为年度金额达到16万亿美元的全球贸易提供支持,是一个新兴的专业性投资领域。不过,约有30%的全球贸易(金额约为5万亿美元)出现了资金不足的问题。这样的贸易融资缺口为债券和股权投资者带来了日益发展的良好机遇。贸易的投资回报传统上来自于债务资本提供方,而“贸易科技公司”的崛起为寻求实现业务多元化的私募股权和其他投资者带来了新的机遇。

This article first appeared on Xue Hua News.

Fintech Istanbul: GTR Ventures’dan ticari FinTech girişimlerine yatırım

Fintech Istanbul

14 Mar 2018 – Yatırım alan FinTech girişimlerinin isimleri şu şekilde sıralanıyor; TradeteqTrade Finance MarketCulum CapitaleFundSME ve Incomlend.

Crowd Fund Insider’ın haberine göre Eylül 2017’de Londra, Singapur ve Hong Kong’daki ofislerini açarak yatırım dünyasına adım atan GTR Ventures, küresel büyüme, ticaret finansmanı endeksleri gibi yeni ürünlerin geliştirilmesi ve dijital ticaret finansmanı için küresel bir pazar oluşturmaya çalışan girişimlere odaklanmak üzere yola çıktı.

GTR yetkilileri yaptıkları ilk açıklamada şu ana dek FinTech girişimlerine gerçekleştirdikleri yatırımların toplam 50 milyon dolar değerinde olduğunu belirttiler.

Yatırım alan girişimlerinden dört tanesinin şu ana dek küresel ticaret araçları sunarak 160 milyon dolar tutarında ticari kredi anlaşması sağlanmasına yardımcı olduğu açıklanan bilgiler arasında yer alıyor. GTR Ventures, önümüzdeki çeyrekte beş yeni anlaşma ve küresel ortaklık ile ek yatırımlar yapmayı ehdefliyor.

GTR Ventures CIO’su Kelvin Tan, “TradeteqTrade Finance MarketCulum CapitaleFundSME ve Incomlend’in arkasındaki kurucular; hizmet verdikleri işletmeler için riskleri azaltmak, kredilendirmeyi daha verimli hale getirmek ve ticaret finansmanı açığını kapatmak için teknoloji ve veri analizi kullanarak bu değişimi yönlendiriyor” açıklamasını yaptı.

Ticaret finansmanı çok büyük bir pazar oluşturuyor. Yaklaşık 16 trilyon dolarlık küresel ticaret hacmine sahip bu pazarda yenilikçi FinTech girişimlerinin pazarın dinamiklerini ciddi ölçüde şekillendirebileceği değerlendiriliyor.

 

This article first appeared on Fintech Istanbul.

Be Beez: GTR Ventures investe in cinque aziende trade-fintech

Be Beez

14 Mar 2018 – GTR Ventures ha annunciato i propri investimenti di debutto in cinque società di trade fintech – Tradeteq, Trade Finance Market, Culum Capital, eFundSME e Incomlend – valutandole collettivamente a circa $ 50 milioni. I dettagli finanziari di ciascun investimento non sono stati resi noti. Assumendo una posizione azionaria nelle cinque società, la società con sede a Londra, Hong Kong e Singapore ha annunciato lunedì che le operazioni sono state le prime in una solida pipeline di transazioni. Il “venture builder” ha inoltre aggiunto che prevede di chiudere altre cinque operazioni e partnership globali nel prossimo trimestre.

Le società recentemente finanziate – quattro istituti di credito commerciali digitali e una piattaforma per gli investitori istituzionali per accedere a strumenti di commercio globale – hanno facilitato oltre 160 milioni di dollari di contratti di prestito commerciale sin dal loro inizio. Tra le società, tre sono con sede a Singapore – eFundSME è un e-marketplace per il trading di fatture. Trade Finance Market (TFM) fornisce soluzioni alternative di finanziamento commerciale per le piccole e medie imprese e Culum Capital offre alle PMI di Singapore accesso al capitale circolante finanziato da investitori accreditati. GTR Ventures ha inoltre investito in Incomlend, che opera a Hong Kong e Singapore, uno scambio di fatture globale in cui le società di diversi paesi possono finanziare i loro crediti all’esportazione vendendoli a investitori privati ​​con uno sconto.

La quinta società a ricevere investimenti è la Tradeteq con sede nel Regno Unito che fornisce la rete collaborativa per investitori e creatori di finanza commerciale, per connettersi, interagire e negoziare. Lanciata a settembre 2017, GTR Ventures investe in società fintech specializzate nel commercio e si concentra su quattro principali aree di investimento: operazioni bancarie (finanza commerciale, tesoreria e cassa), assicurazione commerciale e gestione dei rischi, finanza e filiera delle PMI e commercio fisico.

La finanza commerciale, che sostiene un commercio globale annuale di $ 16 trilioni, è un’area di investimento emergente di nicchia. Tuttavia, circa il 30% del commercio globale, o $ 5 trilioni, è sotto-finanziato. Questo divario finanziario commerciale presenta una crescente opportunità per gli investitori in titoli di debito e di capitale. Mentre i guadagni dal commercio provengono tradizionalmente dai fornitori di capitale di debito, l’emergere di tecnologie commerciali rappresenta una nuova opportunità per il private equity e altri investitori che cercano di diversificare, ha detto una dichiarazione di GTR Ventures.

“Il settore del commercio globale si sta trasformando con la digitalizzazione e l’infrastruttura basata sui dati che collega diversi attori attraverso gli aspetti fisici e finanziari del commercio. I fondatori di Tradeteq, Trade Finance Market, Culum Capital, eFundSME e Incomlend, guidano questo cambiamento utilizzando la tecnologia e l’analisi dei dati per mitigare i rischi, rendere più efficiente il prestito e chiudere il gap finanziario commerciale “, ha dichiarato Kelvin Tan, CIO di GTR Ventures.

 

This article first appeared in Be Beez.

Morning Star: GTR Ventures announces debut investments in five trade FinTechs

LONDON and SINGAPORE, March 12, 2018 — GTR Ventures, the world’s first investment and venture-building platform specialized in trade and supply chain, has announced its debut deals with five trade FinTech companies — Tradeteq, Trade Finance Market, Culum Capital, eFundSME and Incomlend. These deals are the first in a strong pipeline of transactions. GTR Ventures has taken equity positions in the five companies, collectively valuing them at around US$50 million.

Rupert Sayer, CEO, and Kelvin Tan, Chief Investment Officer, from GTR Ventures – boldly reshaping the future of trade, together with the founders of 5 trade fintechs.

The companies — four digital trade lenders and a platform for institutional investors to access global trade instruments — have facilitated over US$160 million of trade loan deals since their inception. Launched in September 2017, GTR Ventures will work with the companies and build their businesses including through global expansion, development of new products such as trade finance indices, and connection to a global marketplace for digital trade finance assets.

“We are excited to partner with GTR Ventures as Tradeteq continues to grow,” said Christoph Gugelmann, CEO of UK-headquartered Tradeteq. “This partnership will help us expand our reach to all players within the trade ecosystem and consolidate our European bases while expanding to markets in Asia, including Singapore, Hong Kong, Shanghai and Tokyo.”

Kelvin Tan, CIO of GTR Ventures said, “The global trade sector is transforming with digitization and data-driven infrastructure connecting diverse players across the physical and financial aspects of trade. The founders behind Tradeteq, Trade Finance Market, Culum Capital, eFundSME and Incomlend, are driving that change by using technology and data analytics to mitigate risks, make lending more efficient and close the trade finance gap. Our vision is to work with these companies and build strategic first-mover stakes in the future of trade.”

Rupert Sayer, CEO of GTR Ventures, said, “The rapidly changing landscape of trade presents exciting opportunities for investors. As our debut deals show, GTR Ventures is uniquely positioned to identify exceptional investments and, through partnerships and alliances, build a global network that will shape the future of both trade and trade finance.”

GTR Ventures is working on a strong pipeline of additional investments and expects to close five more deals and global partnerships in the next quarter.

Trade finance, which supports annual global trade of US$16 trillion, is an emerging niche investment area. However, some 30% of global trade, or US$5 trillion, is under-financed. This trade finance gap presents a growing opportunity for debt and equity investors. While returns from trade have traditionally come from providers of debt capital, the emergence of tradetechs presents a new opportunity for private equity and other investors looking to diversify.

About GTR Ventures (Contact: info@gtrventures.vc, website: www.gtrventures.vc)

Based out of London, Singapore, and Hong Kong, GTR Ventures is the world’s first investment platform dedicated to trade and supply chain. In exclusive partnership with Global Trade Review (GTR), the world’s leader in global trade and trade finance intelligence, publishing, news and events, GTR Ventures mobilizes private capital for trade and trade finance, investing in and supporting the development of trade-focused fintech companies (tradetechs) while working with multiple stakeholders to integrate technology into trade. GTR Ventures focuses on four main investment areas: transaction banking (trade finance, treasury, & cash), trade insurance & risk management, SME finance & supply chain and physical trade.

AboutCulumCapital (contact: enquiry@culumcapital.com, website: www.culumcapital.com)

Culum Capital is a Singapore-headquartered fintech which provides companies with working capital funding using trade finance solutions particularly in receivables purchase and supply chain finance. It is also an investment platform for investors seeking alternative investment opportunities. The company has a proprietary risk assessment and management system to ensure the quality of deals flowing through its platform.

About eFundSME (contact: enquiry@efundsme.com, website: www.efundsme.com)

eFundSME Global Pte Ltd is an e-marketplace for invoice trading, founded, owned and managed by industry veterans from Singapore. Its key management team comprises professionals from the banking industry with aggregate experience exceeding 100 years. The company leverages the power of online technology to transform trade finance for the mutual benefit of SME sellers and investor buyers.

About Incomlend (contact: info@incomlend.com, website: www.incomlend.com)

Operating in Hong Kong and Singapore, Incomlend is a global invoice exchange where companies from different countries can fund their export receivables by selling them to private investors at a discount. The platform trades in multiple currencies (USD, EUR, SGD, and HKD) and offers an integrated digital receivables discounting solution to both suppliers and buyers across its global supply chain, dynamic discounting and factoring products. Investors’ capital is protected against debtors’ credit risk by world leading credit insurers.

About Tradeteq (contact: Nils Behlingnbehling@tradeteq.com, website: www.tradeteq.com)

UK-headquartered Tradeteq provides the collaborative network for trade finance investors and originators, to connect, interact, and transact. Tradeteq delivers AI-powered credit analytics, reporting, investment and operational solutions. Tradeteq transforms trade finance assets into transparent and scalable investments.

About Trade Finance Market (contact: media@tradefinancemarket.com, website: www.tradefinancemarket.com)

Singapore-based Trade Finance Market (TFM) is a fintech leader in providing alternative trade finance solutions for small and medium enterprises. TFM also develops blockchain-based tools to derisk and lower the cost of trade finance transactions — including InvoiceCheck, a tool designed to reduce invoice finance fraud.

This article first appeared on Morning Star.

Yahoo! Finance: News: GTR Ventures announces debut investments in five trade FinTechs

Yahoo! Finance

LONDON and SINGAPORE, March 12, 2018 /PRNewswire/ — GTR Ventures, the world’s first investment and venture-building platform specialized in trade and supply chain, has announced its debut deals with five trade FinTech companies — Tradeteq, Trade Finance Market, Culum Capital, eFundSME and Incomlend. These deals are the first in a strong pipeline of transactions. GTR Ventures has taken equity positions in the five companies, collectively valuing them at around US$50 million.

The companies — four digital trade lenders and a platform for institutional investors to access global trade instruments — have facilitated over US$160 million of trade loan deals since their inception. Launched in September 2017, GTR Ventures will work with the companies and build their businesses including through global expansion, development of new products such as trade finance indices, and connection to a global marketplace for digital trade finance assets.

“We are excited to partner with GTR Ventures as Tradeteq continues to grow,” said Christoph Gugelmann, CEO of UK-headquartered Tradeteq. “This partnership will help us expand our reach to all players within the trade ecosystem and consolidate our European bases while expanding to markets in Asia, including Singapore, Hong Kong, Shanghaiand Tokyo.”

Kelvin Tan, CIO of GTR Ventures said, “The global trade sector is transforming with digitization and data-driven infrastructure connecting diverse players across the physical and financial aspects of trade. The founders behind Tradeteq, Trade Finance Market, Culum Capital, eFundSME and Incomlend, are driving that change by using technology and data analytics to mitigate risks, make lending more efficient and close the trade finance gap. Our vision is to work with these companies and build strategic first-mover stakes in the future of trade.”

Rupert Sayer, CEO of GTR Ventures, said, “The rapidly changing landscape of trade presents exciting opportunities for investors. As our debut deals show, GTR Ventures is uniquely positioned to identify exceptional investments and, through partnerships and alliances, build a global network that will shape the future of both trade and trade finance.”

GTR Ventures is working on a strong pipeline of additional investments and expects to close five more deals and global partnerships in the next quarter.

Trade finance, which supports annual global trade of US$16 trillion, is an emerging niche investment area. However, some 30% of global trade, or US$5 trillion, is under-financed. This trade finance gap presents a growing opportunity for debt and equity investors. While returns from trade have traditionally come from providers of debt capital, the emergence of tradetechs presents a new opportunity for private equity and other investors looking to diversify.

About GTR Ventures (Contact: info@gtrventures.vc, website: www.gtrventures.vc)

Based out of London, Singapore, and Hong Kong, GTR Ventures is the world’s first investment platform dedicated to trade and supply chain. In exclusive partnership with Global Trade Review (GTR), the world’s leader in global trade and trade finance intelligence, publishing, news and events, GTR Ventures mobilizes private capital for trade and trade finance, investing in and supporting the development of trade-focused fintech companies (tradetechs) while working with multiple stakeholders to integrate technology into trade. GTR Ventures focuses on four main investment areas: transaction banking (trade finance, treasury, & cash), trade insurance & risk management, SME finance & supply chain and physical trade.

This article first appeared on Yahoo! Finance.

PE Hub Network: GTR Ventures backs five trade fintech companies

PE Hub Network

By Iris Dorbian

GTR Ventures, an investment and venture-building trade and supply chain-focused platform, has invested in five trade fintech companies: Tradeteq, Trade Finance Market, Culum Capital, eFundSME and Incomlend. The collective value of the transactions is around $50 million.

PRESS RELEASE

LONDON and SINGAPORE, March 12, 2018 /PRNewswire/ — GTR Ventures, the world’s first investment and venture-building platform specialized in trade and supply chain, has announced its debut deals with five trade FinTech companies — Tradeteq, Trade Finance Market, Culum Capital, eFundSME and Incomlend. These deals are the first in a strong pipeline of transactions. GTR Ventures has taken equity positions in the five companies, collectively valuing them at around US$50 million.

Rupert Sayer, CEO, and Kelvin Tan, Chief Investment Officer, from GTR Ventures – boldly reshaping the future of trade, together with the founders of 5 trade fintechs.

The companies — four digital trade lenders and a platform for institutional investors to access global trade instruments — have facilitated over US$160 million of trade loan deals since their inception. Launched in September 2017, GTR Ventures will work with the companies and build their businesses including through global expansion, development of new products such as trade finance indices, and connection to a global marketplace for digital trade finance assets.

“We are excited to partner with GTR Ventures as Tradeteq continues to grow,” said Christoph Gugelmann, CEO of UK-headquartered Tradeteq. “This partnership will help us expand our reach to all players within the trade ecosystem and consolidate our European bases while expanding to markets in Asia, including Singapore, Hong Kong, Shanghai and Tokyo.”

Kelvin Tan, CIO of GTR Ventures said, “The global trade sector is transforming with digitization and data-driven infrastructure connecting diverse players across the physical and financial aspects of trade. The founders behind Tradeteq, Trade Finance Market, Culum Capital, eFundSME and Incomlend, are driving that change by using technology and data analytics to mitigate risks, make lending more efficient and close the trade finance gap. Our vision is to work with these companies and build strategic first-mover stakes in the future of trade.”

Rupert Sayer, CEO of GTR Ventures, said, “The rapidly changing landscape of trade presents exciting opportunities for investors. As our debut deals show, GTR Ventures is uniquely positioned to identify exceptional investments and, through partnerships and alliances, build a global network that will shape the future of both trade and trade finance.”

GTR Ventures is working on a strong pipeline of additional investments and expects to close five more deals and global partnerships in the next quarter.

Trade finance, which supports annual global trade of US$16 trillion, is an emerging niche investment area. However, some 30% of global trade, or US$5 trillion, is under-financed. This trade finance gap presents a growing opportunity for debt and equity investors. While returns from trade have traditionally come from providers of debt capital, the emergence of tradetechs presents a new opportunity for private equity and other investors looking to diversify.

About GTR Ventures (Contact: info@gtrventures.vc, website: www.gtrventures.vc)

Based out of London, Singapore, and Hong Kong, GTR Ventures is the world’s first investment platform dedicated to trade and supply chain. In exclusive partnership with Global Trade Review (GTR), the world’s leader in global trade and trade finance intelligence, publishing, news and events, GTR Ventures mobilizes private capital for trade and trade finance, investing in and supporting the development of trade-focused fintech companies (tradetechs) while working with multiple stakeholders to integrate technology into trade. GTR Ventures focuses on four main investment areas: transaction banking (trade finance, treasury, & cash), trade insurance & risk management, SME finance & supply chain and physical trade.

About Culum Capital (contact: enquiry@culumcapital.com, website: www.culumcapital.com)
Culum Capital is a Singapore-headquartered fintech which provides companies with working capital funding using trade finance solutions particularly in receivables purchase and supply chain finance. It is also an investment platform for investors seeking alternative investment opportunities. The company has a proprietary risk assessment and management system to ensure the quality of deals flowing through its platform.

About eFundSME (contact: enquiry@efundsme.com, website: www.efundsme.com)
eFundSME Global Pte Ltd is an e-marketplace for invoice trading, founded, owned and managed by industry veterans from Singapore. Its key management team comprises professionals from the banking industry with aggregate experience exceeding 100 years. The company leverages the power of online technology to transform trade finance for the mutual benefit of SME sellers and investor buyers.

About Incomlend (contact: info@incomlend.com, website: www.incomlend.com)
Operating in Hong Kong and Singapore, Incomlend is a global invoice exchange where companies from different countries can fund their export receivables by selling them to private investors at a discount. The platform trades in multiple currencies (USD, EUR, SGD, and HKD) and offers an integrated digital receivables discounting solution to both suppliers and buyers across its global supply chain, dynamic discounting and factoring products. Investors’ capital is protected against debtors’ credit risk by world leading credit insurers.

About Tradeteq (contact: Nils Behling – nbehling@tradeteq.com, website: www.tradeteq.com)
UK-headquartered Tradeteq provides the collaborative network for trade finance investors and originators, to connect, interact, and transact. Tradeteq delivers AI-powered credit analytics, reporting, investment and operational solutions. Tradeteq transforms trade finance assets into transparent and scalable investments.
About Trade Finance Market (contact: media@tradefinancemarket.com, website: www.tradefinancemarket.com)
Singapore-based Trade Finance Market (TFM) is a fintech leader in providing alternative trade finance solutions for small and medium enterprises. TFM also develops blockchain-based tools to derisk and lower the cost of trade finance transactions — including InvoiceCheck, a tool designed to reduce invoice finance fraud.

 

This article first appeared on PE Hub Network.

联合早报: GTR Ventures 投资五金融科技公司

13 Mar 2018 – 投资平台GTR Ventures以5000万美元(6573万新元)投资五家贸易领域的金融科技公司,其中四家来自新加坡。

这五家公司中,四家是数码贸易借贷公司,另一家是让机构投资者获得全球贸易工具的平台。

这五家公司成立以来,已促成了超过1亿6000万美元的贸易贷款交易。

首席投资官陈循奕:利用数据分析降低风险

GTR Ventures首席投资官陈循奕说,全球贸易领域正在转型,数码化和数据驱动的基础设施连接了贸易实物和融资方面的各种参与者。

他指出,这五家公司利用技术和数据分析来降低风险,让借贷更为高效,弥合贸易融资中的缺口。

总部位于新加坡的Culum Capital利用贸易融资解决方案,尤其是应收账款购买和供应链融资方面的投资机会,为企业提供营运周转资金。

由本地业内人士创立的eFundSME、以及在香港和本地拥有业务的Incomlend是发票交易电子市场平台。

Trade Finance Market总部位于新加坡,为中小企业提供贸易融资解决方案,也开发基于区块链的工具,帮助降低贸易融资交易的风险和成本。

去年9月成立的GTR Ventures预计将在下个季度达成另外五项投资交易和全球合作。

 

This article first appeared on Lian He Zhao Bao (联合早报).

Trade finance distribution platform Tradeteq launched by ex-bankers

By Global Trade Review

Two former investment bankers have launched Tradeteq, a cloud-based platform that matches trade finance originators with institutional investors.

The platform went live this week after a soft launch in 2017, during which US$130mn of assets were processed, across seven international jurisdictions. During the soft launch, the originators were non-banks, typically factoring companies and corporate finance advisors organising funding for their corporate clients.

The company is based in London but will be opening a Singapore office later this month. The founders, Christoph Gugelmann and Niels Behling, worked together at Bank of America Merrill Lynch before they both joined Galena, the asset management arm of commodity trader Trafigura.

The pair then set up Thames Path Capital, a trade finance-focused asset manager, but found the market beseeched by gaps blocking wider distribution of assets. This is a problem Tradeteq sets out to address.

Tradeteq makes money from the platform by charging a fee based on volumes passed through the platform. There are also premium services such as credit analytics and reporting. Registration fees may be introduced further down the line.

Behling says he sees “tremendous demand for the platform, so we are in the fortunate position that both sides [buyers and sellers] are very interested”.

“We really have seen trade finance asset distribution from every angle, and we understand the investor side extremely well. This is what gives us the edge to distribute trade finance assets from banks to institutional investors,” adds Gugelmann.

The venture capital arm of GTR, GTR Ventures, holds an equity stake in Tradeteq

The post Trade finance distribution platform Tradeteq launched by ex-bankers appeared first on Global Trade Review (GTR).

China Money Network: GTR Ventures Invests In Five Fintech Start-Ups, Aims For Global Expansion

Li DongMei
China Money Network

12 Mar 2018, Hong Kong – GTR Ventures, a London-based investment and venture-building platform specialized in trade and supply chain, has announced its debut deals with five trade fintech companies.

These deals are the first in a strong pipeline of transactions. GTR Ventures has taken equity positions in the five companies, namely Tradeteq, Trade Finance Market, Culum Capital, eFundSME and Incomlend. The companies are collectively valued at around US$50 million, the firm said in an announcement.

The companies – four digital trade lenders and a platform for institutional investors to access global trade instruments – have facilitated over US$160 million of trade loan deals since their inception.

Trade finance, which supports annual global trade of US$16 trillion, is an emerging niche investment area. However, some 30% of global trade, or US$5 trillion, is under-financed.

This trade finance gap presents a growing opportunity for debt and equity investors. While returns from trade have traditionally come from providers of debt capital, the emergence of tradetechs presents a new opportunity for private equity and other investors looking to diversify.

Launched in September 2017, GTR Ventures will work with the companies and build their businesses including through global expansion, development of new products such as trade finance indices, and connection to a global marketplace for digital trade finance assets.

“We are excited to partner with GTR Ventures as Tradeteq continues to grow,” said Christoph Gugelmann, CEO of UK-headquartered Tradeteq. “This partnership will help us expand our reach to all players within the trade ecosystem and consolidate our European bases while expanding to markets in Asia, including Singapore, Hong Kong, Shanghai and Tokyo.”

“The rapidly changing landscape of trade presents exciting opportunities for investors. As our debut deals show, GTR Ventures is uniquely positioned to identify exceptional investments and, through partnerships and alliances, build a global network that will shape the future of both trade and trade finance,” said Rupert Sayer, CEO of GTR Ventures.

GTR Ventures is working on a strong pipeline of additional investments and expects to close five more deals and global partnerships in the next quarter.

“The global trade sector is transforming with digitization and data-driven infrastructure connecting diverse players across the physical and financial aspects of trade. The founders behind Tradeteq, Trade Finance Market, Culum Capital, eFundSME and Incomlend, are driving that change by using technology and data analytics to mitigate risks, make lending more efficient and close the trade finance gap,” said Kelvin Tan, CIO of GTR Ventures.

Based out of London, Singapore, and Hong Kong, GTR Ventures is an investment platform dedicated to trade and supply chain. In exclusive partnership with Global Trade Review (GTR), GTR Ventures mobilizes private capital for trade and trade finance, investing in and supporting the development of trade-focused fintech companies (tradetechs) while working with multiple stakeholders to integrate technology into trade.

GTR Ventures focuses on four main investment areas: transaction banking (trade finance, treasury, & cash), trade insurance & risk management, SME finance & supply chain and physical trade.

Culum Capital is a Singapore-headquartered fintech which provides companies with working capital funding using trade finance solutions particularly in receivables purchase and supply chain finance. It is also an investment platform for investors seeking alternative investment opportunities. The company has a proprietary risk assessment and management system to ensure the quality of deals flowing through its platform.

eFundSME Global Pte Ltd is an e-marketplace for invoice trading, founded, owned and managed by industry veterans from Singapore. Its key management team comprises professionals from the banking industry with aggregate experience exceeding 100 years. The company leverages the power of online technology to transform trade finance for the mutual benefit of SME sellers and investor buyers.

Operating in Hong Kong and Singapore, Incomlend is a global invoice exchange where companies from different countries can fund their export receivables by selling them to private investors at a discount. The platform trades in multiple currencies (USD, EUR, SGD, and HKD) and offers an integrated digital receivables discounting solution to both suppliers and buyers across its global supply chain, dynamic discounting and factoring products. Investors’ capital is protected against debtors’ credit risk by world leading credit insurers.

UK-headquartered Tradeteq provides the collaborative network for trade finance investors and originators, to connect, interact, and transact. Tradeteq delivers AI-powered credit analytics, reporting, investment and operational solutions. Tradeteq transforms trade finance assets into transparent and scalable investments.

Singapore-based Trade Finance Market (TFM) is a fintech leader in providing alternative trade finance solutions for small and medium enterprises. TFM also develops blockchain-based tools to derisk and lower the cost of trade finance transactions – including InvoiceCheck, a tool designed to reduce invoice finance fraud.

 

This article first appeared in China Money Network.

Business Times: GTR Ventures makes debut investments in Singapore trade-linked fintechs

By Jamie Lee
Business Times Singapore

13 Mar 2018, Singapore – GTR Ventures, the world’s first investment platform targeted at trade-related fintechs, has closed its first five investments, including in several Singapore fintechs that are taking aim at the US$5 trillion trade-finance gap globally.

It did not disclose the full valuation of each fintech, but the equity positions in the five companies collectively value them at around US$50 million, GTR Ventures said in a media release on Monday.

GTR Ventures is the venture capital arm of trade finance intelligence firm Global Trade Review, and has offices in Singapore, Hong Kong and London.

Singapore-based Kelvin Tan, chief investment officer of GTR Ventures, said that the founders behind these fintech firms are using technology and data analytics to mitigate risks, make lending more efficient, and close the trade finance gap.

“The global trade sector is transforming with digitisation and data-driven infrastructure connecting diverse players across the physical and financial aspects of trade. Our vision is to work with these companies and build strategic first-mover stakes in the future of trade.”

The fintech companies collectively have helped to tie up more than US$160 million in trade loan deals since their inceptions.

They include Singapore-headquartered Culum Capital, which provides companies with working capital funding using trade finance solutions particularly in receivables purchase and supply chain finance.

Another is Singapore-based Trade Finance Market, a fintech that has developed a digital tool to reduce invoice finance fraud.

GTR Ventures said it is working on a “strong pipeline” of additional investments and expects to close five more deals and global partnerships in the next quarter.

 

This article first appeared in the Business Times (Singapore).

Angel News: GTR Ventures makes debut investments in 5 FinTechs

Angel News

13 Mar 2018 – GTR Ventures, the world’s first investment and venture-building platform specialized in trade and supply chain, has announced its debut deals with five trade FinTech companies – Tradeteq, Trade Finance Market, Culum Capital, eFundSME and Incomlend. These deals are the first in a strong pipeline of transactions. GTR Ventures has taken equity positions in the five companies, collectively valuing them at around US$50 million.

The companies – four digital trade lenders and a platform for institutional investors to access global trade instruments – have facilitated over US$160 million of trade loan deals since their inception. Launched in September 2017, GTR Ventures will work with the companies and build their businesses including through global expansion, development of new products such as trade finance indices, and connection to a global marketplace for digital trade finance assets.

“We are excited to partner with GTR Ventures as Tradeteq continues to grow,” said Christoph Gugelmann, CEO of UK-headquartered Tradeteq. “This partnership will help us expand our reach to all players within the trade ecosystem and consolidate our European bases while expanding to markets in Asia, including Singapore, Hong Kong, Shanghai and Tokyo.”

Kelvin Tan, CIO of GTR Ventures said, “The global trade sector is transforming with digitization and data-driven infrastructure connecting diverse players across the physical and financial aspects of trade. The founders behind Tradeteq, Trade Finance Market, Culum Capital, eFundSME and Incomlend, are driving that change by using technology and data analytics to mitigate risks, make lending more efficient and close the trade finance gap. Our vision is to work with these companies and build strategic first-mover stakes in the future of trade.”

Rupert Sayer, CEO of GTR Ventures, said, “The rapidly changing landscape of trade presents exciting opportunities for investors. As our debut deals show, GTR Ventures is uniquely positioned to identify exceptional investments and, through partnerships and alliances, build a global network that will shape the future of both trade and trade finance.”

GTR Ventures is working on a strong pipeline of additional investments and expects to close five more deals and global partnerships in the next quarter.

Trade finance, which supports annual global trade of US$16 trillion, is an emerging niche investment area. However, some 30% of global trade, or US$5 trillion, is under-financed. This trade finance gap presents a growing opportunity for debt and equity investors. While returns from trade have traditionally come from providers of debt capital, the emergence of tradetechs presents a new opportunity for private equity and other investors looking to diversify.

 

This article first appeared on Angel News.

Crowd Fund Insider: GTR Ventures Invests in Five Trade Fintechs: Tradeteq, eFundSME, Culum Capital & Trade Finance Market

By JD Alois
Crowd Fund Insider

12 Mar 2018 – GTR Ventures, an investment and venture platform that is specializing in the global trade and supply chain financing sector, has announced investments in five Fintechs based in the UK and Asia: Tradeteq, Trade Finance Market, Culum Capital, eFundSME and Incomlend.

Launched in September 2017 with offices in London, Singapore and Hong Kong, GTR Ventures will work with their portfolio companies and build their businesses via global expansion, development of new products such as trade finance indices, and connections to a global marketplace for digital trade finance assets. GTR says their equity positions collectively value the Fintech firms at USD $50 million. These deals are indicative of a “strong pipeline of transactions” as GTR expects to back additional Fintechs in the trade financing industry.

Rupert Sayer, CEO of GTR Ventures, said the rapidly changing landscape in global trade creates opportunities for investors;

“As our debut deals show, GTR Ventures is uniquely positioned to identify exceptional investments and, through partnerships and alliances, build a global network that will shape the future of both trade and trade finance.”

These four digital trade lenders and a platform for institutional investors to access global trade instruments have reportedly facilitated over US$160 million of trade loan deals since their inception.  GTR Ventures expects additional investments with five more deals and global partnerships in the next quarter.

Kelvin Tan, CIO of GTR Ventures explained that the global trade sector is transforming with digitization and data-driven infrastructure connecting diverse players across the physical and financial aspects of trade.

“The founders behind Tradeteq, Trade Finance Market, Culum Capital, eFundSME and Incomlend, are driving that change by using technology and data analytics to mitigate risks, make lending more efficient and close the trade finance gap,” said Tan. “Our vision is to work with these companies and build strategic first-mover stakes in the future of trade.”

Trade finance is enormous. The opportunity for forward thinking platforms to disrupt the US$ 16 trillion global trade business is huge. Additionally, GTR says some 30% of global trade, or US$5 trillion, is under-financed. This trade finance gap presents an opportunity for debt and equity investors. While returns from trade have traditionally come from providers of debt capital, the emergence of “Tradetechs” presents a new opportunity for private equity and other investors looking to diversify.

“We are excited to partner with GTR Ventures as Tradeteq continues to grow,” said Christoph Gugelmann, CEO of UK-headquartered Tradeteq. “This partnership will help us expand our reach to all players within the trade ecosystem and consolidate our European bases while expanding to markets in Asia, including Singapore, Hong Kong, Shanghai and Tokyo.”

 

This article first appeared on Crowd Fund Insider.

SaveSave

e27.co: Meet the 5 trade-tech companies backed by Singapore’s GTR Ventures

By Sainul Abudheen K
e27.c0

12 Mar 2018 – GTR Ventures, an investment and venture-building platform specialised in trade and supply chain, has announced its debut investments in five trade fintech companies, of which four are from Singapore.

The city-state-based GTR Ventures has taken equity positions in these fintech companies, collectively valuing them at around US$50 million.

As per a press note, these five companies — four digital trade lenders and a platform for institutional investors to access global trade instruments — have facilitated over US$160 million of trade loan deals since their inception.

GTR Ventures will work with these firms and build their businesses through global expansion, development of new products such as trade finance indices, and connection to a global marketplace for digital trade finance assets.

The VC firm expects to close five more deals and global partnerships in the next quarter.

Launched in September 2017, GTR Ventures has operations in London and Hong Kong, besides Singapore. In partnership with Global Trade Review (GTR) — a news portal for global trade and trade finance intelligence, publishing, news and events — GTR Ventures mobilises private capital for trade and trade finance, investing in and supporting the development of trade-focused fintech companies (tradetechs) while working with multiple stakeholders to integrate technology into trade.

GTR Ventures focuses on four main investment areas: transaction banking (trade finance, treasury and cash), trade insurance and risk management, SME finance and supply chain and physical trade.

A sneak-peek into the five investees

Culum Capital (Saingapore)

Culum Capital provides companies with working capital funding using trade finance solutions, particularly in receivables purchase and supply chain finance. It is also an investment platform for investors seeking alternative investment opportunities. The company has a proprietary risk assessment and management system to ensure the quality of deals flowing through its platform.

eFundSME Global (Singapore)

eFundSME Global is an online marketplace for invoice trading, founded, owned and managed by industry veterans from Singapore. Its key management team comprises professionals from the banking industry with aggregate experience exceeding 100 years. The company leverages the power of online technology to transform trade finance for the mutual benefit of SME sellers and investor buyers.

Incomlend (Hong Kong and Singapore)

Incomlend is an invoice exchange where companies from different countries can fund their export receivables by selling them to private investors at a discount. The platform trades in multiple currencies (USD, EUR, SGD, and HKD) and offers an integrated digital receivables discounting solution to both suppliers and buyers across its global supply chain, dynamic discounting and factoring products. Investors’ capital is protected against debtors’ credit risk by world leading credit insurers.

Tradeteq (UK)

Tradeteq provides the collaborative network for trade finance investors and originators to connect, interact, and transact. Tradeteq delivers AI-powered credit analytics, reporting, investment and operational solutions. Tradeteq transforms trade finance assets into transparent and scalable investments.

Trade Finance Market (Singapore)

Trade Finance Market (TFM) provides alternative trade finance solutions to SMEs. TFM also develops blockchain-based tools to derisk and lower the cost of trade finance transactions, including InvoiceCheck, a tool designed to reduce invoice finance fraud.

Kelvin Tan, CIO of GTR Ventures, said: “The global trade sector is transforming with digitisation and data-driven infrastructure connecting diverse players across the physical and financial aspects of trade. The founders behind Tradeteq, Trade Finance Market, Culum Capital, eFundSME and Incomlend, are driving that change by using technology and data analytics to mitigate risks, make lending more efficient and close the trade finance gap. Our vision is to work with these companies and build strategic first-mover stakes in the future of trade.”

 

This article first appeared on e27.c0.

Deal Street Asia: GTR Ventures backs five tradetech firms, plans more deals in Q2

By Tanu Pandey
Deal Street Asia

12 Mar 2018 – Trade and supply chain-focused investor GTR Ventures has announced its debut investments in five trade fintech companies – Tradeteq, Trade Finance Market, Culum Capital, eFundSME and Incomlend – collectively valuing them at around $50 million.

The financial details of each investment were not disclosed.

Taking an equity position in the five companies, the London, Hong Kong and Singapore-based firm on Monday said that the deals were the first in a strong pipeline of transactions. The venture builder further added that it expects to close five more deals and global partnerships in the next quarter.

The recently funded companies – four digital trade lenders and a platform for institutional investors to access global trade instruments – have facilitated over $160 million of trade loan deals since their inception.

Among the companies, three are Singapore-headquartered — eFundSME is an e-marketplace for invoice trading. Trade Finance Market (TFM) provides alternative trade finance solutions for small and medium enterprises and Culum Capital provides Singaporean SMEs with access to working capital funded by accredited investors.

GTR Ventures has also invested in Incomlend, which operates in Hong Kong and Singapore, a global invoice exchange where companies from different countries can fund their export receivables by selling them to private investors at a discount. The fifth company to receive investment is UK-based Tradeteq that provides the collaborative network for trade finance investors and originators, to connect, interact, and transact.

Launched in September 2017, GTR Ventures invests in trade-focused fintech companies and focuses on four main investment areas — transaction banking (trade finance, treasury and cash), trade insurance and risk management, SME finance and supply chain, and physical trade.

Trade finance, which supports an annual global trade of $16 trillion, is an emerging niche investment area. However, some 30 per cent of global trade, or $5 trillion, is under-financed. This trade finance gap presents a growing opportunity for debt and equity investors. While returns from trade have traditionally come from providers of debt capital, the emergence of trade-techs presents a new opportunity for private equity and other investors looking to diversify, a statement from GTR Ventures said.

“The global trade sector is transforming with digitization and data-driven infrastructure connecting diverse players across the physical and financial aspects of trade. The founders behind Tradeteq, Trade Finance Market, Culum Capital, eFundSME and Incomlend, are driving that change by using technology and data analytics to mitigate risks, make lending more efficient and close the trade finance gap,” said Kelvin Tan, CIO of GTR Ventures.

This article first appeared on Deal Street Asia.

GTR Ventures announces debut investments in five trade FinTechs

Our press release is available in multiple languages (pdf):
Mandarin | Japanese | French | English

London/Singapore Mar 12, 2018:  GTR Ventures, the world’s first investment and venture-building platform specialized in trade and supply chain, has announced its debut deals with five trade FinTech companies – Tradeteq, Trade Finance Market, Culum Capital, eFundSME and Incomlend. These deals are the first in a strong pipeline of transactions. GTR Ventures has taken equity positions in the five companies, collectively valuing them at around US$50 million.

The companies – four digital trade lenders and a platform for institutional investors to access global trade instruments – have facilitated over US$160 million of trade loan deals since their inception. Launched in September 2017, GTR Ventures will work with the companies and build their businesses including through global expansion, development of new products such as trade finance indices, and connection to a global marketplace for digital trade finance assets.

“We are excited to partner with GTR Ventures as Tradeteq continues to grow,” said Christoph Gugelmann, CEO of UK-headquartered Tradeteq. “This partnership will help us expand our reach to all players within the trade ecosystem and consolidate our European bases while expanding to markets in Asia, including Singapore, Hong Kong, Shanghai and Tokyo.”

Kelvin Tan, CIO of GTR Ventures said, “The global trade sector is transforming with digitization and data-driven infrastructure connecting diverse players across the physical and financial aspects of trade. The founders behind Tradeteq, Trade Finance Market, Culum Capital, eFundSME and Incomlend, are driving that change by using technology and data analytics to mitigate risks, make lending more efficient and close the trade finance gap. Our vision is to work with these companies and build strategic first-mover stakes in the future of trade.”

Rupert Sayer, CEO of GTR Ventures, said, “The rapidly changing landscape of trade presents exciting opportunities for investors. As our debut deals show, GTR Ventures is uniquely positioned to identify exceptional investments and, through partnerships and alliances, build a global network that will shape the future of both trade and trade finance.”

GTR Ventures is working on a strong pipeline of additional investments and expects to close five more deals and global partnerships in the next quarter.

Trade finance, which supports annual global trade of US$16 trillion, is an emerging niche investment area. However, some 30% of global trade, or US$5 trillion, is under-financed. This trade finance gap presents a growing opportunity for debt and equity investors. While returns from trade have traditionally come from providers of debt capital, the emergence of tradetechs presents a new opportunity for private equity and other investors looking to diversify.

Click here to visit our portfolio.


About GTR Ventures (Contact: info@gtrventures.vc, website: www.gtrventures.vc)

Based out of London, Singapore, and Hong Kong, GTR Ventures is the world’s first investment platform dedicated to trade and supply chain. In exclusive partnership with Global Trade Review (GTR), the world’s leader in global trade and trade finance intelligence, publishing, news and events, GTR Ventures mobilizes private capital for trade and trade finance, investing in and supporting the development of trade-focused fintech companies (tradetechs) while working with multiple stakeholders to integrate technology into trade. GTR Ventures focuses on four main investment areas: transaction banking (trade finance, treasury, & cash), trade insurance & risk management, SME finance & supply chain and physical trade.

About Culum Capital (contact: enquiry@culumcapital.com, website: www.culumcapital.com)

Culum Capital is a Singapore-headquartered fintech which provides companies with working capital funding using trade finance solutions particularly in receivables purchase and supply chain finance. It is also an investment platform for investors seeking alternative investment opportunities. The company has a proprietary risk assessment and management system to ensure the quality of deals flowing through its platform. 

About eFundSME (contact: enquiry@efundsme.com , website: www.efundsme.com)

eFundSME Global Pte Ltd is an e-marketplace for invoice trading, founded, owned and managed by industry veterans from Singapore. Its key management team comprises professionals from the banking industry with aggregate experience exceeding 100 years. The company leverages the power of online technology to transform trade finance for the mutual benefit of SME sellers and investor buyers.

About Incomlend (contact: info@incomlend.com, website: www.incomlend.com)

Operating in Hong Kong and Singapore, Incomlend is a global invoice exchange where companies from different countries can fund their export receivables by selling them to private investors at a discount. The platform trades in multiple currencies (USD, EUR, SGD, and HKD) and offers an integrated digital receivables discounting solution to both suppliers and buyers across its global supply chain, dynamic discounting and factoring products. Investors’ capital is protected against debtors’ credit risk by world leading credit insurers.

About Tradeteq (contact: Nils Behling – nbehling@tradeteq.com, website: www.tradeteq.com)

UK-headquartered Tradeteq provides the collaborative network for trade finance investors and originators, to connect, interact, and transact. Tradeteq delivers AI-powered credit analytics, reporting, investment and operational solutions. Tradeteq transforms trade finance assets into transparent and scalable investments.

About Trade Finance Market (contact: media@tradefinancemarket.com, website: www.tradefinancemarket.com)

Singapore-based Trade Finance Market (TFM) is a fintech leader in providing alternative trade finance solutions for small and medium enterprises. TFM also develops blockchain-based tools to derisk and lower the cost of trade finance transactions – including InvoiceCheck, a tool designed to reduce invoice finance fraud.

-Ends-

AltFi News: GTR Ventures heads for fintech deep dive with five new equity deals

By Emily Nicolle
AltFi News

The VC firm has announced debut investments across the UK and Singaporean trade finance sector.

12 Mar 2018 – GTR Ventures, labelled as the world’s first investment and venture-building firm specialised in trade and supply chain finance, has today announced five debut deals with trade fintech firms across London and Singapore.

The VC firm has taken equity positions in UK-based Tradeteq, as well as Singaporean-based Culum Capital, Trade Finance Market, eFundSME and Incomlend, collectively valuing them at around USD $50m.

The five fintech firms have facilitated over USD $160m of trade loan deals to date, with this latest investment from GTR Ventures destined to help the companies build their businesses through global expansion, new product development and connection to a global marketplace for digital trade finance assets.

Kelvin Tan, CIO of GTR Ventures, says that the firm’s expansion into fintech is designed to build “strategic first-move stakes in the future of trade”,  helping GTR to establish diverse players across both the physical and financial aspects of the sector via digitisation and data-driven methodology.

“The rapidly changing landscape of trade presents exciting opportunities for investors,” added Rupert Sayer, CEO of GTR Ventures. “As our debut deals show, GTR Ventures is uniquely positioned to identify exceptional investments and, through partnerships and alliances, build a global network that will shape the future of both trade and trade finance.”

The VC firm also expects to close five more deals and global partnerships within the next quarter. For UK firm Tradeteq, the deal represents an opportunity for direct expansion into the Asean region.

“We are excited to partner with GTR Ventures as Tradeteq continues to grow,” said CEO Christoph Gugelmann. “This partnership will help us expand our reach to all players within the trade ecosystem and consolidate our European bases while expanding to markets in Asia, including Singapore, Hong Kong, Shanghai and Tokyo.”

 

This article first appeared in AltFi News.

Watch this space for our debut deals!

Our debut deals will be announced at 4 PM GMT +8 on the 12th of March 2018.
Watch this space!

Could regtech bridge the trade finance gap in emerging economies?

By Sanne Wass

New technologies such as machine learning and blockchain could help solve the de-risking problem among banks globally and widen access to trade finance in emerging markets.

That’s according to a new study by Centre for Global Development, which assesses six new regulatory technologies – machine learning, biometrics, big data, know your customer (KYC) utilities, blockchain and legal entity identifiers (LEIs) – and their potential to address the de-risking problem.

De-risking has hit many emerging economies since the financial crisis. Amid fears of heavy penalties for breaching anti-money laundering (AML) regulations, the rising costs of conducting the requisite due diligence and the lack of confidence in the respondent banks’ risk control, financial institutions, particularly in the US and Europe, have pulled back from what they consider to be high-risk markets.

According to research by Accuity, a provider of compliance software that helps banks to reduce exposure to AML risk, the number of worldwide correspondent banking relationships, which are critical to cross-border financial transactions, has been in steady decline from 2009 to 2016, falling by 25% overall.

De-risking has had unintentional and costly consequences, especially in Africa, Central and Eastern Europe, and Asia Pacific. Among the biggest losers are small businesses that can’t access working capital or trade finance. As correspondents depart, they’ve left holes in the funding space, cutting credit lines and withdrawing finance.

The African Development Bank (AfDB) now estimates unmet demand for bank-intermediated trade finance of between US$110bn and US$120bn in Africa. De-risking is one factor behind the problem.

“Some policies that have been put in place to counter financial crimes have unfortunately had a chilling effect on banks’ willingness to do business in markets perceived to be risky – in part due to the high price of compliance,” says Vijaya Ramachandran, senior fellow at the Centre for Global Development and one of the study’s authors.

But, pointing to the new study, he says “regtech may be the solution to some de-risking woes”.

“What we’re seeing is that even as these policies are having an impact, financial institutions are coming up with solutions in the form of new cutting-edge technologies to help them comply better and faster with AML regulations,” Ramachandran says.

KYC utilities, for example, can reduce the amount of time correspondent banks spend on repetitive due diligence processes. Blockchain can improve the KYC data storage security.

Big data and machine learning can enhance correspondent banks’ ability to assess and manage risk through more sophisticated customer typologies and more accurate transaction monitoring. And biometrics can enable faster and more assured identification of individuals.

Over time, the study concludes, these technologies may alleviate some of the pressures on banks and “make holding correspondent banking accounts with clients in poor countries more likely”.

This enthusiasm about regtech is not new: GTR has previously reported on ways regtech can help the industry optimise compliance – a task that is still largely dominated by manual and mundane processes. A recent study found that banks could save £2.7bn a year by adopting machine learning and big data technology in their AML systems.

However, the argument that new regtech like machine learning and blockchain will bring banks back to de-risked markets is met with scepticism elsewhere in the industry.

“I don’t think technology is going to solve the problem. It’s a people’s, education and timing issue,” says Sean Norris, head of sales at Accuity.

He points to the fact that many of the de-risked countries, mentioning the likes of Afghanistan, Malaysia, Indonesia and Vietnam as examples, “haven’t got processes right for very basic things yet” and are still “far behind” when it comes to prioritising and implementing the Financial Action Task Force (FATF)’s guidelines and best practices for AML.

“When you’ve got a bank in Jakarta that is still relying of self-declaration of a person in a KYC process, how is that going to be acceptable for a western bank? I don’t think technology is going to solve a behavioural problem and different attitudes to AML controls,” he says.

Norris doesn’t deny the power of technology – after all, Accuity itself is a provider of AML software and is also exploring the use of machine learning to minimise the number of false positives. He also argues that de-risking is in fact driving the acquisition of better technologies by banks in Africa and Asia to upgrade their AML processes.

For example, more banks are looking to adopt Accuity’s sanctions screening solution to demonstrate that they are able to meet global standards of compliance and improve their ability to strike up new business relationships with financial institutions around the world.

But talking about the adoption of artificial intelligence and blockchain within banks in de-risked regions is “a stretch”, he argues, adding that the technologies being adopted are those that “have been around for a long time”.

“It’s really just to comply with the core aspects of AML,” he says. “Sanctions screening, for example, is something that England and the developed markets have been doing for the last decade, which they have now started to implement or operate in the emerging markets.”

New or old technologies, the industry may have to wait a bit longer to see the positive impact on the de-risking problem. But one thing is certain: those banks who take AML seriously have the best chance of re-establishing their broken relationship, Norris explains.

“The western banks are going to be a lot more comfortable when the banks are taking this seriously,” he says. “Compliance should never be a competitive sport, but when you’re talking about de-risking in these emerging markets, a lot of them are over-banked and so it becomes really hard for western banks to pick the right partner. They are going to pick the partner that is taking it seriously.”

Read the full study Fixing AML: Can New Technology Help Address the De-risking Dilemma?

The post Could regtech bridge the trade finance gap in emerging economies? appeared first on Global Trade Review (GTR).

Evergreen goes paperless as first shipping line to adopt Bolero’s e-bill of lading

By Sanne Wass

Evergreen Line has partnered with Bolero International to offer paperless bill of lading and dispatch documentation via its ShipmentLink portal.

The new partnership makes Evergreen Line the first container carrier to integrate with Bolero’s e-bill of lading (eBL) solution.

The two new services will “enhance connectivity for exporters and importers with banks, insurers, regulators, customs and port authorities” and “lower shippers’ costs while making data transfer more accurate, efficient, reliable and secure”, according to the two companies.

The e-bill of lading (eBL) application allows carriers to create, send and manage bills of lading digitally, which will lead to a more rapid issuance and transmission. This is particularly important for short-sea shipments, where a paper-based bill of lading sometimes arrives later than the vessel, making it difficult for importers to pick up cargo on a timely basis.

Going paperless also allows reviews and amendments to be carried out online, and speeds up cash flow by avoiding delays that often come with paper-based documents. With eBL, carriers will be able to release goods far quicker, thus speeding the payment process to shippers.

In addition to the eBL service, the new electronic dispatch function allows the exchange of a wide range of shipping documentation, including packing lists, commercial invoices, certificates of origin and other customs-related credentials, licences and inspection reports.

Putting everything online, the shipping firm seeks to prevent documents being lost in transit or fraudulently copied, and it enables the transmission to be done in an encrypted form when necessary.

Ian Kerr, Bolero’s CEO, says the partnership will “help transform” the shipping industry.

“Bolero’s eBL platform has already been proven in bulk cargo trades and initial container-based transactions by corporates such as Cargill, BHP Billiton and Reliance Industries, but now with Evergreen we are taking a very significant next step in the digitisation of world trade by putting our technology at the disposal of a wider community of container shippers and NVOCCs,” he says.

While companies worldwide have long been looking at ways to automate their business, shipping continues to be an industry largely dominated by manual, time-consuming, paper-based processes. In response to the urgent need for digitisation, platforms like Bolero and EssDocs have emerged to help electronify trade documents or remove paper from the process altogether.

Other shipping companies are taking a different approach, utilising new technologies to build their own platforms from scratch.

Maersk Line, for one, announced a joint venture with IBM in January, which will release a blockchain-powered digital platform for use by the entire global shipping ecosystem. It will utilise distributed ledger technology to give large networks of disparate trading partners – including manufacturers, shipping lines, freight forwarders, port and terminal operators, shippers and customs authorities – a single shared, immutable, real-time view of a transaction.

The joint venture is soon due to release two capabilities, one of which will go under the name “paperless trade” and will digitise and automate paperwork filings through smart contracts. The platform will also employ other cloud-based technologies such as artificial intelligence (AI), the internet of things (IoT) and analytics to help companies move and track goods digitally.

Meanwhile, Bolero itself is also looking at how to redesign its eBL service using blockchain technology, following the signing of a memorandum of understanding with fintech consortium R3 in October.

The post Evergreen goes paperless as first shipping line to adopt Bolero’s e-bill of lading appeared first on Global Trade Review (GTR).

Scroll to top