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101 Blockchains Think Tank Webinar Series
LIVE WEBINAR
Presented by:
Blockchain & DLT in Trade -
A Reality Check
Deepesh PatelDirector, Partnerships &
Marketing, Trade Finance Global
LIVE WEBINAR
Presented by:
Blockchain & DLT in Trade - A Reality Check
➢ Rethinking and digitising the entire trade process
➢ The periodic table of DLT projects
➢ What are the key challenges and risks in what the future of
the industry holds, according to 200 banks, corporates,
fintechs and trade practitioners?
➢ Is COVID-19 causing rapid adoption of digitalisation - why
should we approach this carefully?
101 Blockchains Think Tank Webinar Series
Deepesh PatelDirector, Partnerships &
Marketing, Trade Finance Global
LIVE WEBINAR
The webinar will commence in a few minutes
101 Blockchains Think Tank Webinar Series
Blockchain & DLT in Trade –A Reality Check
Webinar Topics
➢ Rethinking and digitising the entire trade process
➢ The periodic table of DLT projects
➢ What are the key challenges and risks in what the future of the industry holds,
according to 200 banks, corporates, fintechs and trade practitioners?
➢ Is COVID-19 causing rapid adoption of digitalisation - why should we approach
this carefully?
LIVE WEBINAR101 Blockchains Think Tank Webinar Series
A few housekeeping tips
Use the Q&A feature to ask your questions
Trade Finance
Without Barriers
Trade Finance Global (TFG) is the largest
platform for international trade finance,
providing:
● Access to Trade & Receivables
Finance, through 270+ banks, funds
and alternative lenders
● Ungated free information and
educational resources, to an audience
of 120k+ monthly readers across 187
countries
TFG - Market Positioning
Trade Originators - banks or alternative lenders
Funding assets in the primary market
Investors - pension or alternative funds
Funding assets in the primary market and/ or purchasing assets in
the secondary market
● The Fintech Ecosystem Map provides a helicopter view
of the fintech landscape
● Fintechs aim at increasing efficiency and/or
modernising existing practices to the benefit of trade
originators, their clients and investors
● Most fintechs are collaborating with incumbent trade
banks and act as software solutions or as hubs of new
ecosystems
Primary Market Secondary Market
Source: ITFA, Casterman Advisory
TFG originates new-to-lender borrower relationships
Opportunity: Complex cash cycle
Getting rid of paper
● 20+ players involved in transactions
● 5,000 data field interactions created in
one single transaction
● 60-80 data fields amd 10-20
documents, 100+ pages of material,
yet these are reused 8-10 times,
including duplication
Source: SWIFT, BCG
Introducing Blockchain
(Source: TFG, ICC and WTO Blockchain for Trade Survey, October 2019. Responses from
corporates, banks, consultancies and vendors, n = 202)
Gartner-Hype for DLT in trade & receivables
● Trade and receivables have now
reached the far side of the peak of
inflated expectations
● DLT in the shipping space came shortly
after
● Standardisation protocols continue in
2020 (ICC DSI, DLPC, other networks)
● COVID-19 could move us closer to the
slope of enlightenment faster than we
think (meaning that the potential
efficiencies and cost savings are being
investigated now)
Source: TFG, IBM
Periodic Table of Blockchain and DLT Projects in Trade, including a ‘stage’ that the projects and companies are at. Correct as at 1 November 2019.Source: Research by ICC, TFG, WTO
Periodic Table - DLT
Technological and legal challenges remain
● (Left) Technological challenges around
Distributed Ledger Technology include
interoperability, back office ERP
integration and choosing between the
numerous solutions currently available
(private / public, varying technology
etc.)
● (Right) Legal Challenges around
Distributed Ledger Technology are
mainly around:
○ Adopting the UNCITRAL
Model Law on Electronic
Transferable Records
○ ICC Rules to be adopted
locally → eUCP 600, eURC
522, URDG 758 Rules, URBPO
750
Source: ICC, TFG and WTO Blockchain for Trade Survey, October 2019. Responses from
corporates, banks, consultancies and vendors, n = 202
COVID-19 Accelerates
Trade DigitalisationPandemic has induced challenges which are causing rapid
digitalisation due to lack of in-person interactions, a reduction in
trade volumes and the current processes to settle transactions
Key issues:
● deal origination and distribution
● negotiable instruments
● document transmission
● authorised signatures; and
● Shipping
Source: ICC, IFTA, BAFT
Guide: tradefinanceglobal.com/blockchain
A few housekeeping tips
Use the Q&A feature to ask your questions
ARE YOU READY TO JOIN THE BLOCKCHAIN REVOLUTION?
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