World Trade Organization (WTO), Trade Finance Global (TFG), and International Chamber of Commerce (ICC) have launched their latest publication, ‘Accelerating trade digitalization to support MSME financing.’
This new publication, authored by WTO’s Emmanuelle Ganne and TFG’s Deepesh Patel, dives into the benefits and deployment challenges of eight prominent technologies that have the potential to disrupt the international trade landscape and to facilitate MSME financing. The technologies, which include cloud computing, optical character recognition (OCR), internet of things (IoT), application programming interface (API), distributed ledger technology (DLT), big data analytics, artificial intelligence (AI), and quantum computing, have been individually identified as either lucrative challenges, rapid rewards, small wins, or downstream ambitions on the basis of interviews with 34 industry experts and 105 survey responses.
In light of the COVID-19 pandemic, the study highlights that going digital to support MSME financing is no longer optional but necessary. This desperate necessity for paperless workarounds has set the industry on a digital course. However, the publication also notes that digitalization efforts are hindered by an unfriendly regulatory environment that often does not recognize e-signatures and e-documents. Technology cannot thrive in a regulatory vacuum.
Moreover, the new publication underscores the need for a multipronged approach to unleash the potential of digital technologies to facilitate MSME trade financing.
- The need for the development of globally accepted standards to remedy the digital island problem.
- The need for developing a common framework for leveraging data to better assess financing risk.
- The need for creating an enabling regulatory framework that recognizes e-signatures and e-documents and in line with the UNCITRAL MLETR.
- The need for a trusted global digital identity system for companies.
- The need for an acceleration of efforts to bridge the digital divide.
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Download the paper here>