Market Trends of North America Trade Finance Industry
Technology Implementation in Trade Finance Platforms Makes Way for Startups
Many industries rely on technology, including banking, financial services, and insurance. The pandemic increased digitalization and showed the nature of trade. Digitalization cuts costs, improves efficiencies, and transparency facilitates the coordination of global value chains and globally connects many firms and consumers. In recent years, technological breakthroughs, automation, and a degree of standardization have all been developed in trade financing. The demand for AI and automation in banking is being driven by advancements in data collection technology. Fintech Saphyre received USD 18.7 million from BNP Paribas and JP Morgan in 2022. Modern technology is becoming increasingly important in trade financing in North America. The use of blockchain technology in trade finance is expected to generate lucrative business opportunities over the forecasted period. The overall international trade imports and exports are increasing, which is fueling the growth of the trade finance market.
United States Dominates the Market in the North American Region
The United States is the world's second-largest exporter of goods and services exports in 2021, according to the U.S. Census Bureau. However, less than one percent of America's 32 million companies export. And SMEs, which account for 98 percent of American exporters, export to more than one market. SMEs are expanding their sales, diversifying their portfolios, and protecting themselves against periods of slower growth in the domestic economy. Modern technology is becoming increasingly crucial to trade financing in the United States. Adopting blockchain technology in trade finance is anticipated to create lucrative business prospects during the anticipated time period. The demand for safety and security in trading activities is fueling the expansion of the trade finance industry in the United States, along with a surge in SMEs' use of trade financing, more intense competition, and new trade agreements.
