This week the European Banking Authority (EBA) issued a report covering the prudential risks and opportunities of Fintechs. The list of risks read a little like the legal blurb you find in a share listing document: a long bucket list, just in case there’s a legal issue. That’s probably the point.
The EBA document contains an entire section dedicated to Trade Finance distributed ledger technology (DLT). At the time of writing, trade finance projects were still in the Proof of Concept stage, whereas
we.trade is now live.
The opportunities highlighted include efficiency gains, cost reduction, fewer errors, reduced duplication of financing, and fraud prevention. Banks could expand their customer base. For customers, there’s the potential for greater transparency, simplicity, speed, and shortening the time exposed to trade risk.
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