Commerzbank partnership to develop trade finance digitisation
(5 July 2017 – Germany) Commerzbank has announced a partnership with the Fraunhofer-Institute for Material Flow and Logistics (IML) in Dortmund to test and develop new scenarios for digitisation of trade and supply chain finance using distributed ledgers and the Internet of Things (IoT).
The bank says new concepts in digital trade finance based around distributed ledger technology, IoT and smart contracts constitute the basis for new trade ecosystems, new supply chain finance concepts, faster transaction processing and new solutions in working capital management.
Group executive trade finance & cash management corporate clients, Bernd Laber at Commerzbank, said: “We are working on several projects and in a number of consortiums also with other international banks on the digitisation of bank products and bank services, and on applications for blockchain technologies. As a corporate bank the focus on future supply chains of our customers is of paramount importance and we will develop this in co-operation with Fraunhofer Institute.”
The International Chamber of Commerce, finds that 50 percent of banks expect most of trade flow processes to be digitised by 2027 - while an almost equal portion expect the evolution to take from 10-25 years. In addition, nearly 44 percent of the 225 respondents from 98 countries identify digitisation and technology as priority areas of focus.
Meanwhile, East & Partners’ Global Supply Chain Report found global enterprises expect to scale back engagement with local banks by 6.5 percent, while international banks and non-bank financiers are set to increase their relationships by 11.1 percent and 25 percent respectively, albeit from a low base.
Regionally, Chinese corporates have signalled the strongest shift towards international banks, with an increase of more than one third expected, nearly double their closest peers in Australia.
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