• Payments Canada is leading the adoption of ISO 20022 in Canada, to help institutions transition ahead of the November 2025 deadline.
• Key updates include a hybrid address format and a shift from legacy MT messages to XML-based MX messages.

Have you ever looked at your bank statement and seen a payment you don’t recognise? If so, you’re not alone. Traditional electronic payments often only include basic information, like the amount and date, leaving little insight into the payment itself. This lack of detail creates friction for everyone, from individuals managing personal finances to businesses trying to reconcile payments with invoices. 

Enter ISO 20022, the global financial messaging standard that’s set to transform the way we pay by providing richer, more structured data with every transaction. By embedding detailed remittance information, ISO 20022 makes payments more transparent, efficient and useful, not just for financial institutions but for businesses of all sizes and their customers. 

Payments Canada, the organisation which operates Canada’s national payment systems, leads the country’s adoption of ISO 20022 by offering resources, education, training and operational support for Canada’s financial ecosystem. They also manage ISO 20022 usage guidelines for our payment systems in alignment with global standards.

Payments Canada has published updated ISO 20022 message specifications for use on Lynx, Canada’s high-value payment system. These specifications were published alongside a companion document to help financial institutions prepare for changes coming in November 2025. These revised guidelines introduce enhancements, including a new hybrid postal address format developed by Swift’s Payment Market Practice Group (PMPG). 

This hybrid approach combines structured address elements, such as country and town name, with unstructured fields like address lines. It’s a practical bridge that enables organisations to start transitioning toward structured data without requiring an immediate change. Structured address formats will improve accuracy, reduce errors and support critical processes like anti-money laundering (AML) monitoring. 

Another important update is the global shift from legacy MT messages to the modern MX format, which uses XML-based messaging. As of November 2025, the coexistence period of these two message types will end, meaning some MT messages will no longer be supported. Financial institutions, payment service providers and their technology partners are strongly encouraged to prepare for this transition by updating their systems and reviewing how the changes may impact their operations. 

Amidst these transformational shifts in the way we move money, ISO 20022 will embed actionable data into every transaction. As more countries align with global standards, as Canada is well on the way to doing, payments and processes will only grow more swift, fast, and secure.

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To learn more about ISO 20022 and how Payments Canada supports its adoption, visit their website and explore their growing library of educational materials. 

You can also join over 1,900 payment leaders and innovators at The Payments Canada SUMMIT, happening 6-8 May in Toronto. Use promo code SUMM25PCVIP to save $100 off your event pass. 

The post Enhancing the way we pay: Canada’s migration to ISO 20022, and its numerous benefits appeared first on Trade Finance Global.

In the trade finance industry, what many are wondering is: will these changes hurt trade finance, supply chain finance, factoring, and every other kind of financial vehicle connected to international trade?

Fortunately, there are ways to predict the tariffs’ effects – for example, using the data from the last trade war, which happened between 2017 and 2019, as a frame of reference. During that time, the devastating Covid-19 pandemic was also compounding the disruption impacting trade and therefore trade finance.

Global trade did decelerate in 2019 when President Trump imposed tariffs during his first term in office. However, as a report by Allianz Global Investors points out, “a closer examination of broader data suggests Mr Trump’s tariffs may have disrupted global trade only marginally.”

Despite the tariffs, international trade as a share of global GDP exceeded 60% for the first time in a decade only 3 years later, in 2022.  As many expected, trade did contract between China and the US, but growth from other regions offset the reductions. 

During the first trade war, supply chain finance grew at a compound annual growth rate of 26% from 2017 to 2023 despite an increase in global protectionism and tariffs.

Factoring finance ⏤ mainly used by small businesses and mid-market companies to raise finance against their invoices payable ⏤ still grew at a rate of 5%, despite the same headwinds and uncertainty.

If everything plays out along similar lines, then we can expect similar outcomes during this trade war.

The potential of trade finance distribution

Trade finance distribution is a way of unlocking liquidity from trade finance products. Once an originator (like a bank or fintech) provides financing, they can sell or distribute individual or groups of trade finance products to other investors in the market.

This is usually done on an “originate-to-distribute” (OTD) model to ensure a bank is holding on to large volumes of trade finance exposure on their balance sheets. It unlocks opportunities and growth revenue for every party in the transaction. 

How funds and documents flow in supply chain finance (SCF)

For banks, asset managers, institutional investors, non-bank lenders, and alternative credit funds, the attraction of trade finance and distribution is hard to ignore:

• Trade finance is a high-growth sector, currently worth $9.7 trillion and a projected growth of 3.1% in the next 10 years.
• 80 to 90% of global trade relies, in some way, on trade finance.
• There is currently a massive trade finance gap, estimated to reach $2.5 trillion this year. This trade finance gap is especially high in Africa, Asia, and the United Arab Emirates.
• Supply chain finance continues to grow at a yearly rate of 7% and is currently worth $2.34 trillion
• Asia and Africa are seeing the fastest growth in volume of supply chain finance, up 29% and 17% year-on-year, respectively
• Trade finance instruments are always short-term, self-financing, self-collateralized, and can be insured. This makes them very attractive from an investor perspective.
• Unlike other asset classes, such as debt financing or even real estate, the default rates of trade finance and asset distribution have always been very low (in most cases, under 0.25%).

With all of that in mind, trade finance distribution seems like an opportunity that can’t be missed.

It’s one of the reasons Trade Finance Global launched the TFG Distribution Finance initiative in July 2023, which aims to identify and address unmet demands in the trade finance market, working towards closing the trade finance gap

At the same time, with the impending gradual phase-in of Basel III Endgame rules, (which starts on 1 July 2025) banks are keen to de-leverage balance sheets.

Fortunately, the IMF already thought about the impact of Basel III on trade finance. Despite the rules around Tier-1 banks (especially the global 37 with over $100 billion on their balance sheets), trade finance is “clearly not the target of the re-regulation exercise” because they are “low-risk, highly collateralized . . . with a very small loss record”, as the  IMF noted in a policy paper about Basel III in 2014.

All of this makes now the perfect time for banks, asset managers, institutional investors, non-bank lenders, and alternative credit funds to get into trade finance distribution or scale-up current operations.

The question is, can this be done without over-leveraging risk, or increasing headcount?

Accessing distribution sustainably

Trade finance distribution should unlock new revenue opportunities for banks, asset managers, or corporates.

If organisations understand the market, they can leverage against any risk factors and avoid increasing their headcounts unnecessarily.

For financial players getting into or scaling-up distribution, LiquidX’s white-label platform enables seamless integration of distribution into the organisation’s existing offerings while maintaining brand identity.

Thanks to LiquidX’s award-winning capabilities and a deep partnership with Broadridge  ⏤ a trusted global fintech leader ⏤ financial institutions wanting to enter trade finance distribution can outsource this function completely without needing to recruit more staff. LiquidX’s software takes care of everything, from digitization at one end to distribution at the other; its solutions cater to a network of over 90 banks and asset managers worldwide.

Digital solutions for trade finance distribution

Organizations looking to get into trade finance distribution or wanting to scale up existing operations should be cautious and do quality research first.  The steps and precautions to take will vary according to whether companies are starting from scratch and want to syndicate, buy, sell, or use an originate-to-distribute model, or if they are looking to grow their existing offerings.

One of the biggest challenges faced by companies is often managing the inflows and outflows of money and documents from different sources. Having a tool for managing multiple sources of data that’s platform-agnostic makes getting into distribution much easier. 

Now more than ever, distribution is a high-growth opportunity for banks, asset managers, institutional investors, non-bank lenders, and alternative credit funds. Using solutions like LiquidX can help companies take advantage of this opportunity and leverage the enormous potential trade finance distribution has to offer.

The post Trade finance distribution: Unlocking liquidity in a fast-growing sector appeared first on Trade Finance Global.

Corporate lending and trade finance are undergoing a transformation – that much, everyone can agree on. Digitisation, AI, and a market that is in constant motion make the industry one of the most exciting sides of finance, ripe with opportunities as much as challenges. 

However, how to overcome these challenges – especially in a complicated geopolitical landscape – and evolve with the opportunities remains a hot topic.

Finastra, a global provider of financial software applications, hosted its annual Europe Corporate Banking Day along with sponsors Microsoft and Tech Mahindra to discuss just that.  In London, senior executives from across the banking, technology and sustainability sectors came together to discuss the key market and technological trends in the industry: here are 5 of their main insights.

​​1. The market is shifting

Institutional investors and private credit are increasingly dominating the market, with growing appetite for direct lending as borrowers seek the best financing options. However, the lending industry still faces many challenges related to transparency, interconnectivity, inefficiencies and balancing regulation with innovation. 

Global political and economic fluctuations are also creating new trade corridors, requiring institutions to be agile and flexible and driving a shift from payables to receivables finance. 

2. Corporates expect seamless services, but digitisation remains a challenge

Corporates demand banking services that are personalised, digital, instant, and both local and global. However, an audience poll identified digitisation as the biggest challenge and opportunity, cited by 44% of institutions. Across the industry, data remains largely in paper form, creating significant barriers. 

Banks must invest in customer-centricity by implementing truly digital customer journeys, straight-through processing and automation and reduce loan approval time. Technologies such as cloud, microservices, APIs, digital ecosystems, and agentic AI will play an important role in banking’s evolution.

3. Industry expertise is declining 

As the next generation enters the workforce, institutions must capture knowledge from experienced workers before they retire, storing it in a structured database. More admin-focused roles must be migrated, upskilled, and digitized to attract younger talent. An audience poll revealed that talent attraction and retention were the biggest challenge and opportunity for almost a quarter of respondents.

4. AI is here to stay

When implemented correctly, AI can augment human capabilities, deliver automation and increase efficiency and speed in ways that would have been unthinkable just a few years ago. Large language models serve as a valuable resource for information, bridging knowledge gaps and facilitating faster decision-making. With AI, institutions can, for example, issue more letters of credit and digital trade agreements and better track, report, and fulfill sustainability commitments. 

AI can speed up document processing, compliance checking, and contract approval times. In the future, we may see autonomous supply chains and transaction processing as well as augmented smart contracts with instant settlement, all thanks to AI’s constant evolution.

5. Tokenisation experiments in trade finance 

Although it has been discussed for many years, banks today are increasingly experimenting with tokenisation. Innovations such as smart contracts and stable and risk coins can drive greater efficiencies in trade settlement and post-trade processing, improve risk management, and provide more effective access to capital. With routers, multiple use cases can be created.

However, despite the opportunities, the lack of industry standards remains a challenge. On the other hand, some argue that standards can stifle innovation and therefore should only be established once market connectivity is achieved.  

The event speakers included leaders from Finastra’s Lending business unit, such as Andrew Bateman, Lekshmi Nair, Robert Downs, Anastasia McAlpine, Sandrine Markham, Elena Sankova and Julian Lee. Other speakers represented institutions such as Microsoft, Tech Mahindra, ING, Loan Market Association, ITFA, Crédit Agricole CIB, Norddeutsche Landesbank Girozentrale and CredAble.

The post 5 takeaways from Finastra Europe Corporate Banking Day: AI, digitisation, and a changing industry appeared first on Trade Finance Global.

With more details being released by the US and some countries already releasing significant retaliatory tariffs, a clearer picture is emerging – one of a global economy which will be, at least for a short while, deeply affected by the sweeping tariff regime. Changes and adjustments resulting from this are expected to have far-reaching effects on the global trade industry, diverting trade flows and transforming supply chains. 

When Asian markets opened this morning, it was clear their adjustment to Trump’s tariffs was far from over. Japan’s Nikkei lost 7.8% and China’s main index, the Shanghai composite, lost 7.3%, the biggest fall since the 2020 pandemic. Hong Kong’s Hang Sei index had the biggest one-day drop in 28 years, closing at -13.2%. On the other hand, Asian currencies may see a resurgence as investors move away from the dollar and towards “safe havens” like the Japanese yen, Swiss franc, and Euro, all of which have risen in the past few days. 

Many Asian countries have been among the hardest-hit by Trump’s tariffs, with China subject to a staggering total 54% tariff. The US is by far China’s biggest trading partner, and the recently announced 34% retaliatory tariff is expected to hit US exporters hard when it goes into effect on 10 April. 

The two most important Indian stock indexes fell by around 5% on opening, likely in response to the 26% tariffs imposed by the US. This was in part driven by Tata motors, one of the largest Indian auto companies, which fell by over 10%. Jaguar Land Rover, one of its subsidiaries, was the first major company to announce it would halt shipments of its UK-made cars to the US due to the tariffs levied on the global auto industry. 

Amid fears of a US recession – which analysts like Goldman Sachs are now forecasting with near-certainty if all the tariffs go into effect as announced – oil prices have also dropped to a 4-year low. Brent crude, the benchmail oil marker, has continued its fall started on Friday, now costing $63.49 a barrel compared to last year’s average of about $80. 

European markets, which opened just a few hours ago, are experiencing similar shockwaves. While the UK has been widely seen as avoiding the worst of the tariffs, only being subject to the baseline 10% tariff levied against all countries (even uninhabited Antarctic islands), London’s FTSE 100 lost 4.9%. The German stock exchange fell by 10% when markets opened but has now recovered to just -5.9%, while the French Cac 40 fell by 5.7%.

This is as EU members grapple with high tariffs of 20% as well as a 25% tariff on foreign cars set to go into effect soon, which is expected to affect the already struggling German auto industry. Companies with complex supply chains, like car manufacturers, could see an exponential effect of tariffs, especially if an intermediate step of the manufacturing process happens in the US. 

The agricultural industry, too, could experience significant turbulency, as some of the countries most affected by the tariffs, such as Vietnam and Taiwan, are also among the world’s biggest coffee, cocoa, and crop exporters. This could have a ripple effect both in consumer purchasing power and in global supply chains – for example, strengthening trade between the US and Brazil, another big coffee producer that has been hit less by the tariffs. 

As companies look into diverting their supply chains, smaller players might unexpectedly come at the forefront of global trade. San Marino, a small city-state on the Adriatic coast of Italy, has been eyed as a way for some EU countries to evade US tariffs, which are 20% on the EU but only 10% on San Marino. 

It’s still hard to tell just how much the tariffs will impact the global economy, and how – as seen by the volatile response of markets to the changes. Retaliatory tariffs on the one hand could exacerbate the situation and lead to an all-out global trade war, while negotiation attempts could de-escalate current tensions and lead to a much softer impact on the global economy.

The post Markets react to Liberation Day tariffs as global trade hangs in the balance appeared first on Trade Finance Global.

After months of starts and stops, threats and retreats, Liberation Day is upon us. The Trump administration’s promised wide-ranging regime of tariffs, a cornerstone of his winning presidential campaign, was set for 2 April. Some countries scrambled to negotiate last-minute deals while others are searching for ways to restructure their supply chains – often by moving closer to the US’ s rivals – all in the wake of what is anticipated to be the biggest unilateral tariff escalation since the 1950s Cuban embargo. 

Amidst the confusion and ever-changing policies, the TFG team has compiled a summary of the story thus far and the tariffs as they stand now – updated live every day.

How did we get here?

Throughout the US presidential campaign last year, trade and tariffs have been at the forefront of Republican messaging, forming a core part of Trump’s plan to revive the US economy. While blanket tariffs – of as much as 60% on US rivals like China – were memorably floated during rallies and speeches, more recent declarations by the Trump administration have focused around so-called “reciprocal” tariffs. 

These unilateral import taxes are meant to “make up for” trade barriers that (the President believes) are being unfairly levied against the US, in the form of taxes, subsidies, regulation, and red tape. This seems to suggest that tariffs will vary wildly between countries and even from one industry to the next depending on their importance to US trade and the level of trade barriers. That the tariffs are, at least, in part, targeted towards ending “unfair practices that have been ripping off [the US] for decades” suggests that negotiation is possible, and proposed tariffs may be reduced or lifted if receiving countries make concessions on US exports. 

Tariff timeline

1 February – Trump announces tariffs on Canada and Mexico

In a series of executive orders, Trump imposed a 25% tariff on nearly all goods from Canada and Mexico, scheduled to come into effect on 4 February. Canadian oil and energy imports would have been exempt from this, instead only being taxed at 10%. In the same set of orders, Chinese imports are set to be subject to a 10% tariff on top of currently existing taxes. 

3 February – Trump delays tariffs after retaliation threats

The day before the 25% tariff was set to begin, the Trump administration reached a deal with Canada and Mexico’s leaders to delay them by a month after the two countries threatened strong retaliatory taxes on American exports. 

4 March – Canada and Mexico tariffs really do come into effect

A month after the tariffs were meant to begin, US tariffs against Canada and Mexico came into effect, as did Canada’s retaliatory levies. The White House also announces a doubling of blanket tariffs on Chinese goods, from 10% to 20%, set to start the following day. 

6 March – Trump delays (some) tariffs, again

Just two days after the US–Canada–Mexico tariffs come into effect, the US once again delays tariffs on about half of goods – those covered by the USMCA free trade treaty – by another few weeks. The full set of tariffs are now scheduled to go into effect on 2 April. 

2 April – Liberation Day

Most tariffs on all industries and all areas of the world are expected to be announced, and some even to go into effect, today. This is likely to affect even countries that have already been affected by some tariffs and those who have long-standing trade agreements with the US. It is also the day that the USMCA exemption, which lifted tariffs on many Canadian and Mexican goods, will run out, leaving the US’s two main trading partners facing steep tariffs that may not be delayed again. 

3 April – Auto tariffs

Proposed tariffs specifically targeting passenger cars and trucks from any country, speculated to be as high as 25%, are set to go into effect on 3 April. 

3 May – Deadline for tariffs on auto parts

According to the same executive order that imposed tariffs on cars, a 25% tariff on auto parts will go into effect before 3 May. 

TFG Tariff Tracker

As information about the new tariffs is released throughout the day, the TFG team will keep updating the timeline and publish summaries of which industries and areas are being most affected. 

The post TFG Tariff Tracker: What’s in store for Liberation Day? appeared first on Trade Finance Global.

• While largely effective, economic sanctions bring problems in terms of compliance and supervision.
• This is a remit where technology, in particular AI solutions, can help.
• There is space for sanctions authorities to innovate more, particularly considering how frequently sanctions are used.

In 432 BC, a messenger sent by Athens to Megara, a nearby rival city, was unceremoniously killed after delivering his message. To retaliate, Pericles, the Athenian leader, issued a decree banning any Megarian traders from Athenian ports and marketplaces: thus, the first sanction was born. Sanctions, tariffs, and embargoes have developed since Ancient Greece, most recently becoming a hot topic in global trade when most Western countries imposed sanctions on Russia after its illegal invasion of Ukraine in 2022. 

Modern sanctions are becoming more sophisticated, and more complex, than ever; on top of straightforward tariffs and embargoes, specific financial tools can be used to cripple a country’s economy and connection to the outside world, such as when the EU and US blocked Russia’s access to the SWIFT financial messaging system in 2022.

For companies operating across multiple countries, some of which may be the object of sanctions, negotiating these barriers while staying within the law in both jurisdictions is crucial. At the Economic Sanctions Summit in London on 20 March, a panel of lawyers and compliance officers discussed how to navigate the most difficult aspects of sanctions and how technology tools like AI can help. 

The strain of sanctions

Whenever a government announces sanctions against another country, it – often correctly – sees financial institutions as the first line of defence, making sure no money goes where it shouldn’t. However, this puts a strain on those institutions in the form of additional supervision, audit, and compliance to adhere to the sanctions – which can often imply a higher workload for compliance and a strain on resources. 

While AI solutions have been hailed by almost every sector for their revolutionary automation capabilities, compliance and audit are where AI’s potential can truly be life-changing. AI tools – which can range from simple rule-based automation to generative AI tools that mimic what a person would do in a situation – can massively simplify and speed up financial institutions’ sanctions screening process. 

To be approved by regulators, however, AI solutions can’t be completely autonomous: a human component, whether as an oversight or double checking the AI’s work, is important to maintain transparency and explainability. “Solutions that run on AI models should be designed in a way that the user of the solution can explain why the solution is making certain decisions […] to internal audit, external audit, regulators, [and] clients,” said a panelist at the event.

Effectiveness vs efficiency: The data problem

The way to train AI, especially generative models, is data – which makes having enough accurate, up-to-date information on past transactions more important than ever. Using narrow data points and applying AI solutions gradually to individual aspects of compliance can help make the first line of defence faster, cheaper, and more efficient. 

A crucial step for companies adapting to shifting sanction regimes is training their staff – both in using and working with AI models, and on the evolving compliance requirements imposed by sanctions. Sometimes, AI-powered tools can do more harm than good, especially if they produce so many false positives that their alerts swamp the teams in charge of reviewing them. Having the correct data can go a long way to increasing the efficiency of those tools without compromising on accuracy.

Compliance teams have other tools to screen clients which have been used for years before AI came into the scene and are for the most part still useful – tools like due diligence procedures, understanding a client and their business, and investigating clients’ ownership structures. However, many in the industry feel that technology hasn’t been used to its full potential, leading to outdated processes that are not keeping up with the development of sanctions. “In the last 10 years, we’ve seen significant evolution in the way the sanctions are used and […] the innovation that’s been tried by sanctions authorities […] hasn’t really moved with that evolution,” said a panelist. 

From compliance to litigation

Another important but oft-overlooked aspect of adapting to sanctions is managing the litigation brought by parties from the affected country against financial institutions enforcing sanctions. Russian firms have been known to sue banks that do not honour their obligations to comply with EU sanctions, leading to a lengthy and costly litigation process. 

The possibility of legal proceedings makes it even more crucial to have a clear view of how decisions about sanctions compliance are made and document every aspect of the process to protect firms against accusations of unfairly flagging transactions. On the flip side, having well-documented procedures can also shield a company that has done everything it could to comply with sanction regulations from legal liability if those efforts ultimately failed. A recent Court of Appeal decision reinforced the importance of this, confirming that if the relevant person of a firm is able to show that they reasonably believe their actions comply with UK sanctions regulations, then that is a defence to civil liability.

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In today’s precarious global geopolitical situation, sanctions are unlikely to go anywhere anytime soon: while they can sometimes be more a precursor than an alternative to more overt warfare – the Athenian sanctions in 432 BC were shortly followed by the Peloponnesian War – they are a crucial diplomatic tool for rival countries. Financial institutions are often at the centre of sanction enforcement, acting as one of the first and last lines of defence. This makes it crucial for their audit and compliance teams to stay on top of developments in regulations and make the most of tools, like AI-powered solutions, to make applying sanctions easier and more accurate. 

The post Sanctions in practice: How the trade industry is adapting to global restrictions appeared first on Trade Finance Global.

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As recent news makes strikingly clear, today’s world is becoming increasingly volatile and fraught with risk. Being part of the trade industry in this unstable geopolitical environment requires adaptability, resilience, and risk management, making insurance more necessary than ever.

At the annual Women in Trade, Treasury, and Payments Conference on 27 February, Trade Finance Global (TFG) spoke to Sanda Blanco, Head of Structured Credit, Political Risks and International Bonding at Howden, about the most important political risks of our time and how bespoke insurance can help businesses thrive in face of them. 

A new world order

While the international geopolitical landscape is inherently volatile, the last few years have seen unprecedented shifts at breakneck speed. From conflicts to regime change and economic shocks, constant change has made it more and more difficult to predict what’s coming next and adjust to it. “I have witnessed this – conflicts, wars, financial crisis – but not all at once with this global reach,” said Blanco.

In the past 20 years, the world has also become more interconnected than ever – meaning shocks in one region quickly send waves across entire industries around the world. The world’s growing reliance on international trade, for example, meant that the Russia-Ukraine conflict had profound consequences on food supply around the world, from Europe to Africa; other conflicts near crucial trade routes or economic shocks in large economies can also have immediate, almost unpredictable effects on countries thousands of miles away. 

This change has effectively led to a “new world order” and caused a decline in trust among nations, institutions, and politicians. Fear of change has increased polarisation – as recent US and German elections show – and eroded trust between people, making the global situation even more precarious.

Bespoke risk management: the way forward

With more unpredictability comes more risk, which businesses must monitor and mitigate to stay afloat. Insurance brokers and underwriters, like Howden, can help by forging relationships between companies and insurers and helping companies find the coverage they need to continue working. 

Howden focuses on long-term insurance, creating bespoke solutions for clients tailored to their specific needs. This means the Howden team must get to know the client, insurer, and the underlying transaction thoroughly to create a solution that addresses the client’s needs and risk appetite. This is what makes the relationships between brokers and clients so crucial, especially in a world where trust is dwindling: only through strong, collaborative relationships can brokers understand the client’s needs and how underwriters’ products can match up with them. 

The future of risk: tech, diversity, and inclusion

As insurance becomes increasingly important, so does ensuring that all companies have access to the right type of coverage. Leveraging technology is crucial to connecting firms to insurance providers, enabling them to find solutions that work for them without having to go through long, inefficient processes. 

Howden has been building a range of platforms to provide businesses, especially small and medium-sized enterprises (SMEs) with specific insurance cover, like a recently announced platform to protect UK firms against renewable energy risks, or two unique digital platforms: Tepfin X, a Lloyd’s of London approved trading platform and a completely new way for its clients to access the Structured Credit & Political Risk Insurance market for their high volume businesses. The aim of this was to overcome the traditional inefficiencies of the insurance market in quoting and placing these business lines, to give clients instant certainty and speed of access to available insurance capacity, which they can leverage to maximise the value of their commercial opportunities and Dynamite, a data management system for Structured Credit & Political Risk Insurance.

Increasing accessibility will only become more important in the next few years as demand for political risk insurance is set to soar. Even though many businesses are slowing down on globalisation, instead resorting to nearshoring and restructuring supply chains to decrease geopolitical risk, global uncertainty remains high. 

This is likely to lead to a boom in political risk insurance, an inherently countercyclical industry: “The safer the world looks like to banks, traders, and investors, the less the clients feel they need to buy political risk insurance,” said Blanco. Vice versa, increased risk means increased demand for insurance cover; the industry’s profits will depend on the insurers’ appetite, capacity, and prices, as well as the different types and levels of coverage they offer. These may need to change over time, adjusting to new risks cropping up globally and adapting to clients’ demands.

Looking inward, the insurance industry must also continue in its progress to include more women in leadership roles: a recent survey found that only 37% of boardroom positions in Europe’s top insurance companies are held by women, and 80% of insurance companies have women make up less than a third of executive teams. Diversity, Equity, and Inclusion policies are doing some of the work in drawing attention to and decreasing the gender gap. 

Some women, however, have taken matters into their own hands: Blanco founded a group for women working in international bonding and guarantees, which grew to have 50 members just a year after its founding. The group lets women in all positions, ages, and areas of the sector meet each other and offer advice and support: “It’s so rewarding to see the impact that your own experiences, the good and the bad ones, can make in someone that is only starting in the sector as a woman,” said Blanco. 

The post PODCAST | Thriving amidst turbulence: The role of bespoke insurance appeared first on Trade Finance Global.

• Embedded payments are seamless, automated transactions integrated directly into a platform or service, allowing users to make payments without leaving the ecosystem.
• The value which they add is growing more apparent as automation becomes everyday.

The role of payments in business is undergoing a fundamental transformation. Once seen primarily as a cost centre, payments are now emerging as a critical revenue driver. Embedded payment solutions are enabling businesses to not only manage increasingly complex payment structures, but also to unlock new revenue streams. 

By seamlessly integrating payments into digital platforms, companies can enhance user experiences,  more effectively support marketplace sellers or platform users, and create more value for their ecosystems. This constant evolution in payment technology is reshaping industries, making these solutions indispensable for staying competitive and driving growth across Europe and beyond.

What are embedded payments?

The value of embedded payments lies not merely in simplifying transactions themselves: various approaches can achieve this end. Embedded payments are about the seamless management of complex payment flows between multiple parties, such as consumers, platform users, and marketplaces. These systems unify diverse financial interactions, whether it’s splitting payments, managing payouts to sellers, or reconciling fees within a platform. 

Essential features of embedded payments

When selecting an embedded payments provider, businesses should look for key features that enhance financial transactions:

1. Seamless pay-in and pay-out functionality: Businesses can manage incoming and outgoing payments in multiple currencies, providing flexibility for both merchants and customers.
2. Effortless KYC and onboarding: Integrated compliance and onboarding processes allow businesses to quickly verify and onboard new sellers, reducing friction.
3. Split payments and escrow services: These features enable funds to be securely divided among multiple parties, holding payments in escrow until conditions are met, and ensuring trust and reliability.
4. Automated dispute resolution and support: Built-in mediation tools help manage disputes efficiently, enhancing customer service and reducing administrative burdens.

For businesses, these capabilities reduce manual workloads, enhance transaction security, and foster customer loyalty. For consumers, they simplify the purchasing experience while offering greater transparency and trust.

Embedded payment solutions go beyond basic transaction processing by introducing advanced automation, security measures, and flexible business models; they support a variety of payment structures; and essentially serve as a one-stop-shop for digital transactions.

Advancements in application programming interface (API) technology and cloud-based solutions have played a crucial role in the rise of embedded payments. APIs allow seamless integration of payment capabilities into existing platforms, reducing implementation time and costs. Cloud-based infrastructure ensures scalability and security, making it easier for businesses to adopt embedded payment systems without major overhauls.

Real-world applications across industries

Across Europe, businesses are leveraging embedded payments to drive growth and innovation:

• Retail: As retail marketplaces expand, the need for seamless payment setups grows. Effective payment solutions must support split payments across multiple sellers while maintaining a frictionless omnichannel experience for customers, both in-store and online.
• Hospitality: Restaurants and service providers rely on platform businesses and ISVs to consolidate operations, streamline management, and enhance efficiency—integrating embedded payments as part of these platforms improves transactions and generates additional revenue.
• Marketplaces: Online marketplaces enable sellers to sign up, sell, and receive payments effortlessly, fostering business expansion.

The future of embedded payments: AI and automation

Artificial intelligence (AI) and machine learning are set to further develop embedded payments. AI-powered fraud detection, personalised transaction flows, and predictive analytics will make payment experiences even more intuitive and secure. For businesses aiming to stay ahead, embedded payments are no longer just an advantage—they’re a necessity. As new technologies continue to reshape commerce, integrating these solutions allows companies to unlock greater value from payments.

The post Back to basics: The role of embedded payments appeared first on Trade Finance Global.

Commerce thrives when barriers are lifted, and opportunities are shared. Unfortunately, history shows that progress in trade has often excluded half the population from its full benefits. 

To learn more about gender issues in trade, treasury, and payments, Mahika Ravi Shankar of Trade Finance Global (TFG) spoke with Gwen Mwaba, Afreximbank’s Managing Director of Trade Finance and Correspondent Banking, at TFG’s annual Women in Trade Treasury and Payments event in London. 

Women, particularly those in emerging markets, often face unique struggles that hinder their ability to participate fully in the global economy, such as limited access to education, outdated legal systems, and restrictive inheritance laws. 

Without the right to own property in some regions, securing financing becomes nearly impossible shackling many organisations to their small business status. When businesses remain small because they cannot finance the growth waiting for them, the entire economy suffers.

Mwaba said, “A woman in trade can be a leader of a big organisation, but that’s the minority. The majority of ‘women in trade’ in emerging markets would be the women selling goods in a marketplace or the women carrying cash across the border from one country to another to buy goods that are required in their country.”

Many of these African women engage in commerce as street vendors or cross-border traders, but see their contributions go underrecognised. Many are becoming farmers, turning to agriculture as a viable and promising career. Yet, systemic obstacles persist that the financial sector will have a role in overcoming.

Institutions have begun focusing on the economic inclusion of women through targeted programs. Liquidity solutions for small and medium-sized enterprises (SMEs) provide a lifeline. When credit becomes accessible, business owners can expand operations, hire more workers, and bolster their communities in the process. 

Beyond funding, visibility matters. Placing women in leadership allows young girls to see someone like them in charge, encouraging them to dream big. It also ensures decision-making reflects diverse perspectives and does what is best for the organisation and economy as a whole, rather than just a gender-biased subset.

Mwaba said, “There are a number of unique challenges that are very specific to a continent like Africa. Some of those include things like a lack of access to education for young girls. Boys still tend to be favoured, and many families would rather pay for the male child to go to school than the female children.”

These issues demand attention. Collective advocacy strengthens the case for practical solutions that allow women to thrive in both business and family life.

Trade, treasury, and payments have historically been male-dominated but that reality is beginning to shift as more women enter the sector, find success, and push for broader representation. A big step also comes from recognising that no two ‘women in trade’ are alike, that unique circumstances demand unique solutions.

The next step involves dismantling outdated norms, promoting financial inclusion, and ensuring women are positioned as leaders, not just contributors. The momentum exists. What happens next depends on those willing to drive change.

The post VIDEO | The role of women in Africa’s trade and finance appeared first on Trade Finance Global.

Capital investment can be vital for driving economic development, but on its own, it is rarely enough. True development requires robust financial systems that serve all trade participants and minimise those trade finance gaps limiting opportunities for businesses in regions where liquidity remains a formidable challenge.

To learn more about the power of financing, Mahika Ravi Shankar, Assistant Editor at Trade Finance Global (TFG) spoke with Ankita Pandey, a relationship manager with the Asian Development Bank’s (ADB) Trade and Supply Chain Finance Program (TSCFP), at TFG’s Women in Trade, Treasury & Payments event in London. 

A significant aspect of ADB’s trade finance initiatives involves research and data-driven advocacy. The bank’s Trade Finance Gaps, Growth, and Jobs Survey, published biannually, remains the only global analysis dedicated to quantifying the shortfall in available financing. 

Pandey said, “It is a survey-based assessment of the significant and growing gap between demand for, and supply of various forms of trade financing”

The insights provided by the survey and its accompanying report help organisations of all sizes and scopes refine their risk-sharing frameworks and inform responses to economic trends and events the world over, such as ESG standards, tariffs, and artificial intelligence. But perhaps most importantly, it provides us with insights into the financing struggles of internationally active businesses.

The absence of accessible financing affects businesses of all sizes, yet small and medium-sized enterprises (SMEs) are well known to suffer the most. Women-led SMEs have it worst of all, facing additional, often systemic, barriers that make it harder for them to secure the funding they need to fulfil expansion plans. 

Despite increased awareness and targeted programs, these disparities persist. Development banks and partner institutions provide financial literacy training and encourage banks to integrate more women into trade finance roles.  

Pandey said, “We work closely with a range of partners and stakeholders to deliver training programs to women-led SME businesses, on entrepreneurship, finance and trade financing specifically, among other relevant topics.”

ADB’s initiatives encompass supply chain finance, risk-sharing arrangements, and AI-driven sustainability tools designed to help SMEs understand and operate within complex regulatory frameworks. 

On the financing side, the bank works directly with local banks, increasing their capacity to fund businesses that might otherwise struggle to access credit. Risk-sharing arrangements with partner institutions push this even further, ensuring trade continues to drive economic development, hopefully, one day without the need for any ADB involvement whatsoever. 

Pandey said, “Our mission is to bridge the trade finance gap by effectively mobilising private sector capital. By including a broader range of society, especially SMEs, we aim to maximise the developmental benefits of trade.”

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