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Trade finance is a concept that is defined as a science and also a concept that covers several different activities. It is indeed science in a way that it is a precise concept of capital management. This is managed capital is required for the smooth flow of international trade. However, there exists an extensive range of tools to be used by financiers, which determine how various assets like investments, cash, and credit can be utilized to derive maximum benefits. The growth of the global trade finance market is estimated to be influenced by the shifting strategy of banks across the globe.

Trade finance activities encompass activities pertaining to international and domestic trade. It comprises insurance, bank guarantees, export finance, credit agency, receivables and invoice finance, and issuing letters of credit (LCs). Trade finance enables exporters and importers, manufacturers, sellers, and buyers to deal with investments, credit, and cash for the purpose of trade. The concept of trade finance helps in the arrangement of short-term finance in a convenient way, which is likely to encourage growth of the global trade finance market in the years to come. Some of the prominent companies in the market are SunTrust Bank Holding Company, NewMarket Latin America Inc.,

JPMorgan Chase & Co, BNP Paribas SA,Wells Fargo & Company, and HSBC Holdings plc.

The global trade finance market is prophesized to expand at an exponential growth rate over the tenure of assessment, from 2017 to 2026. Such growth of the global trade finance market is attributed to the advantages that it brings for the financiers across the globe.
 
Incorporation of Advanced Technologies to Shoot Up Demand in the Market

Trade finance activities are the financial tools and products that are utilized by companies to facilitate smooth trade and commerce activities at an international level. With the change in how business is done, it has become imperative for banks to transform their business and make alignments with their customers rapidly thereby bringing in changes in the strategies of supply chain. As the largest banks in the world take up strategically different approaches, the global trade finance market is likely to observe growth over the period of assessment.

Augmented businesses involving global export and import are likely to bode well for the market in the near future. In addition, introduction new technologies such as Blockchain and digitalization are estimated to diminish cost and the better the effectiveness of the practices of trade finance. However, the complications and cost requirement pertaining to anti-money laundering (AML), sanctions, and know your customer (KYC) are likely to act as a barrier for the global trade finance market over the period of analysis, from 2017 to 2026.

Asia Pacific to Offer High Market Attractiveness over the Period of Forecast

Asia Pacific has developed itself into a highly lucrative region for the global trade finance market. The region is estimated to retain its market attractiveness over the period of forecast, thanks to the increased funding from the government to better trade finance for augmented export activities. Of all the regions in Asia Pacific, China is estimated to come up as one of the leading regions in the trade finance market in Asia Pacific. It is forecasted that as compared to other regions in the world, there will be higher demand in Asia Pacific.

North America and Latin America are estimated to account for high revenues over the tenure of analysis. High production oil coupled with large-scale export activities and services of agency finance are estimate to propel growth of the market in these regions. Agency funding and high export in the US is likely to widen the scope of trade finance in the region.