About Blockchain In Trade Finance and Credit Insurance
A blockchain is a data structure that can be used to create a digital ledger of transactions that can be distributed across a digital network using cryptography. The main advantages of blockchain technology in trade finance can be summarized inefficiency, traceability, verifiability, transparency, and security. Transactions are concluded directly between the relevant parties without intermediaries and with digitized information. Traditionally, commercial banks and credit insurers have focused their trade finance offerings primarily on a select number of large corporate clients and occasionally medium-sized companies. From today's perspective, this limited profile of viable trade finance customers means a limited customer base. Banks with an untapped customer base have great potential to increase trading volume and reduce overall costs. In addition, current trade finance solutions offer a poor customer experience with complex, mostly paper-based processes, where information is exchanged between many different parties, which requires a high degree of coordination, time, and effort.
Attributes | Details |
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Study Period | 2018-2030 |
Base Year | 2023 |
Unit | Value (USD Million) |
CAGR | 3.0% |
The companies are now exploring the market by adopting mergers & acquisitions, expansions, investments, new developments in existing products, and collaborations as their preferred strategies. The players are also exploring new geographies and industries through expansions and acquisitions so as to avail a competitive advantage through combined synergies. Analyst at AMA Research estimates that United States Players will contribute the maximum growth to Global Blockchain In Trade Finance and Credit Insurance market throughout the forecasted period. Established and emerging Players should take a closer view at their existing organizations and reinvent traditional business and operating models to adapt to the future.
Finextra (United Kingdom), Deloitte (United Kingdom), TradeIX, Ltd. (Ireland), Bain & Company (United States), Capco (Belgium), PYMNTS.com (United States), McKinsey (United States), IBM Corporation (United States), Digital Asset Holdings (United States), Bitfury (Netherlands), Huawei (China), QBE Insurance (Australia), Atradius (Netherlands), COFACE (France), Zurich Insurance Group (Switzerland), CESCE (Spain), ICBC (China), JPMorgan Chase (United States), Mizuho Financial Group (Japan), Credit Agricole (France), HSBC (United Kingdom), BlockCypher (United States), Factom (United States), AlphaPoint (United States) and Symbiont (United States) are some of the key players that are part of study coverage. Additionally, the Players which are also part of the research coverage are Cegeka (Belgium), Applied Blockchain (United Kingdom), Provenance (United Kingdom), VECHAIN (Singapore), Earthport (United Kingdom), BigchainDB GmbH (Germany) and BTL Group (Canada).
Segmentation Overview
AMA Research has segmented the market of Global Blockchain In Trade Finance and Credit Insurance market by Type (Cross-border and Non Cross-border), Application (Large Enterprise and Small and Medium-Sized Enterprises (SMES)) and Region.
On the basis of geography, the market of Blockchain In Trade Finance and Credit Insurance has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico). If we see Market by Trade Type, the sub-segment i.e. Domestic Trade will boost the Blockchain In Trade Finance and Credit Insurance market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth. If we see Market by Insurance Type, the sub-segment i.e. Credit Life Insurance will boost the Blockchain In Trade Finance and Credit Insurance market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
Influencing Trend:
Rising Attraction towards Simplified Insurance Claiming Procedures and Integration of Technology of Credit Insurance
Market Growth Drivers:
High Adoption due to Unbalanced Macro-Economic Factors and Growing Demand due to Improving Sales and Accounts Receivable Support Benefits
Challenges:
Limited Legal Certainty and Operational Inefficiencies
Restraints:
Lack of Focus of Trade Financing For SMEs and Insufficient Risk Valuation Capabilities
Opportunities:
Advancements in Technology and An Upsurge in the Efficient Enhancement in Trade Finance Industry
Market Leaders and their expansionary development strategies
In September 2023, TradeLens, a trade finance platform developed by a consortium led by IBM and Maersk, announced a partnership with Atradius, a global credit insurance provider. This collaboration aims to integrate Atradius' credit insurance solutions into the TradeLens platform, offering businesses a one-stop shop for trade finance and risk mitigation services.
In October 2023, Marco Polo, a trade finance platform built on the R3 Corda blockchain, launched a new product called "Marco Polo Trade Receivables Discounting." This product allows businesses to sell their trade receivables to investors at a discounted rate, improving their cash flow and liquidity.
Key Target Audience
Providers of Blockchain In Trade Finance and Credit Insurance, Potential Investors, Market Research Firms, End-users and Others
About Approach
To evaluate and validate the market size various sources including primary and secondary analysis is utilized. AMA Research follows regulatory standards such as NAICS/SIC/ICB/TRCB, to have a better understanding of the market. The market study is conducted on basis of more than 200 companies dealing in the market regional as well as global areas with the purpose to understand the companies positioning regarding the market value, volume, and their market share for regional as well as global.
Further to bring relevance specific to any niche market we set and apply a number of criteria like Geographic Footprints, Regional Segments of Revenue, Operational Centres, etc. The next step is to finalize a team (In-House + Data Agencies) who then starts collecting C & D level executives and profiles, Industry experts, Opinion leaders, etc., and work towards appointment generation.
The primary research is performed by taking the interviews of executives of various companies dealing in the market as well as using the survey reports, research institute, and latest research reports. Meanwhile, the analyst team keeps preparing a set of questionnaires, and after getting the appointee list; the target audience is then tapped and segregated with various mediums and channels that are feasible for making connections that including email communication, telephonic, skype, LinkedIn Group & InMail, Community Forums, Community Forums, open Survey, SurveyMonkey, etc.