The International Chamber of Commerce (ICC) and Finastra have committed to a strategic initiative to tackle the growing trade finance gap. Both organisations are orchestrating an ecosystem and exploring the development of a financing marketplace that will provide micro-, small- and medium-sized enterprises (SMEs) with access to a broader set of alternative finance resources in order to help keep the global economy moving forward.
The ICC TRADECOMM marketplace, powered by Finastra, will reduce trade finance barriers for SMEs and enable all parties to benefit from improvements in matching supply and demand.
There is a large and growing trade finance gap representing a mismatch between demand for and supply of trade financing, estimated at US$1.5 trillion pre-COVID-19 and potentially reaching US$2.5 trillion by 2025. Coupled with the effects of the COVID-19 pandemic, SMEs desperately need short-term liquidity and access to international trade to survive the on-going economic crisis. Alternative financing options will be required to address this gap and provide SMEs with the immediate capital required to carry out cross-border transactions.
