TRENDING
Demica
Demica is a market-leading fintech powering the trade finance programmes of the world ’ s largest trade banks and corporations .
Demica ’ s proposition is simple : an intuitive , cloud-based platform enabling financial institutions and corporates to automate and scale their working capital solutions .
Trusted by major global organizations , Demica has US $ 27bn of Assets under Administration , across the full spectrum of working capital products .
Funded by a diverse range of banks and institutional investors , these programmes enable companies to strengthen their supply chains and redeploy capital to drive growth .
financing options . These are financial solutions that leverage business relationships within the supply chain to make financing accessible for small suppliers in the most remote and underserved parts of global supply chains .
The emphasis on digital technology reflects the increasing importance of Digital Transformation in enhancing visibility and efficiency in managing supply chains .
Overall , the ADB report reveals the global trade finance gap as widening to has widened to the highest on record to $ 2.5 trillion in 2022 – a gap said to highlight the unapproved demand for finance to facilitate international commerce .
This gap – affecting businesses of all sizes including large organizations – is described as driven by a number of macroeconomic factors , including the COVID-19 pandemic , rising interest rates and ongoing geopolitical tensions . recovered from disruption due to geopolitical factors and the COVID-19 pandemic .
This finding appears to be at odds with widely expressed views among other stakeholders , including policymakers and multilateral institutions , that supply chain reconfigurations and resilience remain priority issues post-pandemic .
Firms identified access to adequate financing ( 21 %), reliable logistics ( 17 %) and the use of digital technology ( 16 %) as the three most crucial factors for resilient supply chains .
In a separate question , 76 % of responding firms expressed interest in exploring deep-tier supply chain
Respondents recognized a lack of collateral , insufficient credit history and unfavourable market conditions as the main reasons their applications for trade finance were rejected .
“ The top reason cited for rejected trade finance applications was insufficient collateral or guarantee . This is where supply chain finance can help ,” said Maurice Benisty , Chief Commercial Officer at supply chain finance platform Demica .
“ Supply chain finance can help businesses , to get the financing they need to grow their businesses and create jobs – technology is enabling the solution to push deeper into the supply chain to smaller suppliers which is helping to address the global trade finance gap ,” he said . p
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