AI's ability to transform Trade Finance is tantalizingly immense, so I thought it helpful to share 5 key areas for an AI revolution... and one key area of concern specific to our industry 🙄😅 1. Risk ⚡️ AI's ability to analyze vast datasets offers deep insights into market trends, credit risks & fraud detection. This isn't just about risk mitigation; it's about seeing around corners and foreseeing them. 2. Efficiency/Speed 🏎️ Trade Finance is synonymous with paperwork and slow processing. From KYC to document verification, AI radically reduces processing/ decision & execution times. 3. Compliance/Regs: 📜 International trade is complex and compliance is often a Herculean task to process, requiring massive human teams & oversight committees. AI's ability to continuously learn/adapt to reg changes enables compliance to become seamless, fast, robust....and most importantly, fun! Well, perhaps not fun, but certainly quicker/better! 4. New Products: ✨ Trade Finance has existed for thousands of years & AI's ability to analyze complex data at an unprecedented scale unlocks the creation of new, tailored financial solutions. This shift enables clients to leverage trade finance products that are not just effective but also aligned perfectly with their specific needs and goals. That's huge. 5. Blockchain Integration: ⛓️🖥️ Blockchain's potential has always been compelling, but when combined with AI, the success potential multiplies exponentially. AI/Blockchain integration promises enhanced security, transparency, and traceability in trade finance, building an open trust-based ecosystem that all parties can rely on... this is somewhat a 'nirvana' state, but certainly worth discussing. Now, the area of concern... 🤦♂️ This won't be popular and is my own opinion (as always), but at a recent GTR NY event a speaker (who I won't name, but comes from a Top 4 Consulting Firm) also gained zero friends by observing "80% of this room will be retired in under 10 years"... and herein lays the problem. Traditional Trade Finance was slow to execute on Web 2.0/3.0 innovation due to a lack of technical knowledge & and these same faces who have IMMENSE product expertise, but can barely operate a microwave, are still here today. 😅 The amount of casually dismissive comments about AI/Blockchain I hear on a day-to-day basis from incumbents is bizarre & the reason for it, is simple. The "80%" (consultants' words, not mine!) - won't be around to see it implemented, so why bother to adapt now? Our industry needs fresh perspectives, new technologies & new talent with the 'crazy dreamer' mindset required to modernize, disrupt and (most importantly), grow our industry! We need entreprenuers! ... So my only ask if you are an "80%er" and encounter one of these unicorn builder folk who might need your expertise... For god sake don't put them off! 😅 #AI #fintech #tradefinance #blockchain
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Recently, Standard Chartered and Synpulse published a report focusing on the tokenization of real world assets (RWAs). They project that the tokenization market will grow to $30.1 trillion in the next decade, with trade finance accounting for 16% or $4.8 trillion. This segment is expected to be among the top three categories of tokenized assets worldwide. Read the report summary on Ledger Insights: https://lnkd.in/eDFFSptQ View the full report: https://lnkd.in/eBw67tKz
Standard Chartered: tokenization market to reach $30.1 trillion by 2034. Trade finance will be significant - Ledger Insights - blockchain for enterprise
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Strategic Growth Architect & Innovator | Fintech & Neo Banking | Chief Strategy Officer
7moInteresting points, Jonny Barrett. I believe there should be more emphasis on the commercialization of data, enabling the creation of new products based on real cash flow. Blockchain further facilitates the tokenization of these products, allowing pricing to be determined by the free market instead of relying on antiquated credit analysis techniques.