What is Trade Finance Software Market?
Trade finance covers various financial instruments that support companies' exports and imports. Software packages include functions that ensure all transactions comply with SLAs. The use of digitized software aids transactions as all documents are easily tracked, and transactions happening over long distances are sped up. Trade finance solution features such as import and export standby letter of credit, collections, bonds, and guarantee, captures and generating swift messages and documents, refining under import LC, export LC and collections, shipping guarantees, reimbursements, remittances, participations, syndications, and loans.
Highlights from Trade Finance Software Market Study
Attributes | Details |
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Study Period | 2018-2028 |
Base Year | 2022 |
Current Market Size (2022) | USD1.56 Billion |
Unit | Value (USD Billion) |
Key Companies Profiled | Finastra (United Kingdom), Newgen Software (India), CGI Inc. (Canada), ICS BANKS (United Kingdom), Surecomp (Canada), Sopra Banking Software (France), China Systems (China), Traydstream (United Kingdom), Aite Matrix (United States) and LiquidX, Inc. (United States) |
CAGR | 10.8% |
Global trade finance software is a fragmented market due to the presence of various players. The players are focusing on investing more in launching softwares. These will enhance their market presence. The companies are also planning strategic activities like partnerships, mergers, and acquisitions which will help them to sustain in the market and maintain their competitive edge. Research Analyst at AMA predicts that European Players will contribute to the maximum growth of Global Trade Finance Software market throughout the forecasted period.
Finastra (United Kingdom), Newgen Software (India), CGI Inc. (Canada), ICS BANKS (United Kingdom), Surecomp (Canada), Sopra Banking Software (France), China Systems (China), Traydstream (United Kingdom), Aite Matrix (United States) and LiquidX, Inc. (United States) are some of the key players profiled in the study. Additionally, the Players which are also part of the research are IBSFINtech (United States), Comarch (Poland), FIS (United States) and Jack Henry & Associates (United States). Trade Finance Software Market Segmentation:
Scope | Sub-Segments |
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Application / End User | Banks, Trade Finance Houses and Others |
Type | Cloud and On-Premise |
Function | Letters of Credit,Guarantees,Supply Chain Finance,Documentary Collection,Others |
Organization Size | SMEs,Large |
Component | Software (Web-based, Cloud-based, On-premises),Service |
According to AMA, the Global Trade Finance Software market is expected to see steady growth rate and may see market size of USD3.07 Billion by 2028. On the basis of Type, Cloud are dominating the market in the year 2022 where as On-Premise stood as second largest market share.
On the basis of application, Banks segment is dominating the market in the year 2022
On the basis of geography, the market of Trade Finance Software has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, 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). Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
Influencing Trend:
Rise of Rigtech to Combat Increasing Compliance Hurdles and Increasing Worldwide Import and Export Transactions
Market Growth Drivers:
Demand for Financing Solutions, Especially from Local Providers and Changing Consumer Expectations, Emerging Technologies, and New Business Models
Challenges:
Lack of Focus on Trade Financing For SMEs, Insufficient Risk Valuation Capabilities and Unmet Demand for Trade Finance and the Rapid Digitalization Process
Restraints:
The lack of Digital Standards and Laws as well as High costs Discourage Banks and Firms from Adopting Technology
Opportunities:
Paperless Future of Trade Finance, Participation of Emerging Local Markets in Global Trade and Collaboration of Traditional Banks and Fintechs can create Opportunities for the Trade Finance Software Market
Key Target Audience
Trade Finance Software Developers, Regulatory Bodies, Potential Investors, Research and Development Institutes and Others
Market Leaders & Development Strategies
On 30th May 2022, CGI Inc. acquired Harwell Management. The acquisition will expand its offerings in various financial services segments, such as retail banking, corporate and investment banking, capital markets, insurance, and healthcare mutual, as well as other specialized financial services, such as leasing, personal financing, and factoring.
On 23rd June 2020, Kofax launched a new Trade Finance Solution. The solution automates the processing of paper and electronic trade transaction documents allowing banks and other financial institutions to enhance efficiency, improve compliance and overcome processing times.