There are numerous consortia addressing trade finance, including four which are international. As the first one gets closer to launch (
we.trade), the question is whether there’s room for so many. There’s already talk of mergers.
Bain wrote
in a recent report about the stampede into transactional banking. They note that traditional corporate lending is experiencing tightening margins and higher capital requirements, whereas transactional banking including trade finance offers less volatile revenue.
The report warns about the attractiveness of the segment. It says: “The widespread optimism may not be warranted, however. For one thing, banks are chasing the same, albeit growing, market.” The number of blockchain initiatives in the trade finance space is an excellent example of this.
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