Banks have access to an unparalleled amount of data, and are beginning to service clients beyond traditional financing. Anonymised and aggregated spending data can help businesses make more informed decisions.

Consider a corporate real estate company that is looking to open a new shopping centre; banks could support the client with data on the most popular geographical locations based on payment propensity. Once the shopping centre is open, banks can provide information on who is shopping there – and when, and even why.

“It’s an opportunity for banks to go beyond banking, and be a real strategic partner for our clients,” said Matt Burns, Managing Director, Transaction Banking Solutions, Lloyds Corporate & Institutional, at the BAFT Europe Bank to Bank Forum 2025 in Amsterdam.

Watch the full video for more.

The post VOXPOP | Matt Burns on FIs commercialising data 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struggles that hinder their ability to participate fully in the global economy, such as limited access to education, outdated legal systems, and restrictive inheritance laws.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.”

The post VIDEO | Enabling inclusion by bridging trade finance gaps at ADB appeared first on Trade Finance Global.

Uzbekistan, one of Central Asia’s major economies, is placing itself and the centre of growing regional trade by reintroducing factoring services to its banks. On behalf of Trade Finance Global (TFG), Madina Nurmatova, Project Manager at IFC, spoke to Foziljon Ulashev, Director of the Small and Medium Businesses Department at Aloqa Bank JSCB, at the ‘Exploring Receivables and Payable Finance conference,’ hosted by FCI, IFC, and the Central Bank of the Republic of Uzbekistan. They delved into the role of the factoring industry in boosting Central Asian trade. 

Factoring: the road to trade

As mandated by a decree announced in August, Uzbek banks are now required to offer factoring services, which allow clients to sell their outstanding invoices and access immediate cash flows. This is crucial for small and medium-sized enterprises (SMEs) wishing to export to neighbouring countries, as it allows them to enter the world of trade while minimising risk, uncertainty, and long waiting times. 

Factoring services provide much-needed lifelines for SMEs, explained Ulashev: “The amount that the clients received through factoring services allows them to ensure the continuity of the subsequent manufacturing processes, to refill their working capital, to increase the scale of production, to make payments to the subsequent entities down the value chain”. Without factoring, businesses will have much longer turnaround times and will struggle to expand their operations or diversify. 

This will not only boost SMEs in Uzbekistan but is expected to have an important impact on trade around the region. Central Asia, a long-neglected area in the shadow of China and the oil-rich Middle East, is having a renaissance as investors look to its large, untapped client base and growing economy. However, regional trade remains much lower than it could be due to poor infrastructure and historically high barriers to trade: moves like Uzbekistan’s factoring push will be key to bringing the region forward and attracting foreign investment. 

Aloqa Bank’s innovation

Aloqa Bank is at the forefront of the growing factoring industry in Uzbekistan, which promises to reshape regional trade finance by reintroducing services that cater to the fast‐paced needs of SMEs. 

With a factoring market potential estimated at almost $2 billion, the new digital factoring service is aimed at unlocking liquidity quickly and efficiently. Factoring provides immediate funding for businesses with tight margins and contributes to reducing recorded debts, increasing the turnover of money within the economy.

Since the decree this summer, Uzbek banks have rushed to improve and modernize their factoring services. The bold regulatory move has encouraged banks like Aloqa Bank to innovate, launching an online platform that allows business clients to submit electronic applications for factoring. The process is entirely digital, eliminating the need for physical visits to bank branches and cumbersome paperwork—a vital upgrade for SMEs operating on tight schedules.

The bank’s online platform is integrated with external systems that automatically review key documents such as invoices, contracts, and reconciliation statements. This technological integration helps determine the payor’s solvency through a scoring analysis guided by pre-set stop factors. The system then decides if the factoring service can be provided, issuing contracts and acknowledgement forms to both the vendor and the payor electronically. As a result, the turnaround time for financing is remarkably short.

“The convenience of factoring services for the business entities is in the absence of a need for additional documents, [the] short time of getting the financing processed, [and that entities are not required to provide additional collaterals,” said Ulashev.

This rapid processing is critical for SMEs that need to secure funds swiftly to maintain production continuity, expand operations, or simply manage cash flow gaps. Factoring services offered by Aloqa Bank come with flexible terms—up to 30 days at a discount rate of 2.5% and up to 90 days at a discount rate of up to 8%. In 2024, the project facilitated about $1.5 million in trade; it is projected that in 2025, over $23 million worth of trade will be financed with this service. 

Switching on digital trade finance

Such aggressive targets align with broader economic reforms in Uzbekistan, aimed at opening the country up to trade and attracting foreign direct investment that will be crucial for sustained growth. The country has been actively implementing market-oriented reforms since 2017, including liberalising the exchange rate, reducing import tariffs, and simplifying business regulations.

The shift toward digital trade finance solutions in Uzbekistan is supported by a broader government push to modernize the financial sector. Initiatives to improve transparency, reduce bureaucratic hurdles, and integrate digital tools into everyday banking operations are part of the ongoing reform agenda. It is hoped this will turn Uzbekistan into the region’s financial hub, leading innovation and providing services to businesses from across Central Asia. 

As the factoring market develops, competitors and fintech companies are also entering the space, driving innovation and further improving service delivery. Although the Central Asian market is still in its early stages compared to mature economies, the aggressive targets set by banks like Aloqa Bank illustrate a clear vision for the future of trade finance in Uzbekistan. With the government’s backing and the increasing digital literacy of local businesses, the new era of digital factoring is poised to make a significant impact on the Uzbek economy.

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The reintroduction of factoring services in Uzbekistan is set to be an important step in increasing regional trade and is emblematic of a wider effort by Uzbekistan to modernise the country’s financial sector and place it as a leader of regional innovation. The digital factoring program by Aloqa Bank represents a critical step in encouraging SME growth and boosting trade. 

With clear government support, robust technological integration, and a focus on maintaining strong business relationships, the new platform is set to play a vital role in supporting national and regional economic growth for a long time.

The post VIDEO | Uzbekistan opens the doors to $2bn factoring industry appeared first on Trade Finance Global.

At Women in Trade, Treasury & Payments 2025, Bloomberg HT spoke to Sarah Murrow, CEO of Allianz Trade UK & Ireland and Head of Women in Credit Insurance at ICISA, about the importance of driving diversity and inclusion in the credit insurance sector.

1. Supporting women in credit insurance – Allianz Trade sponsors the Women in Credit Insurance Association, a working group within ICISA, to provide mentorship, training, and networking opportunities.
2. Closing the leadership gap – While pay equity is strong in the sector, fewer women reach senior leadership roles, highlighting the need for targeted career support. 
3. Building a community – Founded in 2023, the Women in Credit Insurance Association hosts virtual and in-person events to help women advance in their careers.
4. Mentorship matters – Structured mentorship programs can equip women with the skills and confidence to take on leadership roles.
5. Industry-wide commitment – Driving diversity and inclusion requires an ongoing effort from companies, policymakers, and industry groups.

Empowering women in trade and finance starts with action—mentorship, community, and commitment to change.

#AccelerateAction

The post VOXPOP | Sarah Murrow on the importance of driving diversity and inclusion in the credit insurance sector appeared first on Trade Finance Global.

This International Women’s Day, Bloomberg HT spoke to Emmanuelle Ganne, Chief of Digital Trade and Frontier Technologies at the World Trade Organization, about some of the challenges women face when accessing international trade markets.

1. Women-led businesses struggle to export – Only 15-20% of exporting companies are led by women, with barriers like operating in non-export-heavy sectors and being smaller in size.
2. Access to finance is a major hurdle – Many women face challenges securing funding due to shorter credit histories and assets often being registered in a man’s name.
3.  Policy matters – Governments can drive change by integrating a ‘gender lens’ into trade regulations, ensuring policies support women-led businesses.
4. Data drives action – Better gender-disaggregated data can help policymakers and organisations develop targeted solutions.
5. Digitalisation can be a game changer – Technology provides women with better access to international markets, trade information, and alternative financing solutions.
6. AI could unlock new opportunities – AI-powered alternative data can help assess creditworthiness, making it easier for women to secure funding.
7. Connectivity remains a challenge – For women in developing economies, limited Internet access still restricts their ability to leverage digital trade tools.

This interview was recorded at our inaugural event: Women in Trade, Treasury & Payments.

The post VOXPOP | Emmanuelle Ganne on the challenges women face when accessing international trade markets appeared first on Trade Finance Global.

Having implemented significant reforms in recent years, Uzbekistan is stepping confidently into a future defined by financial inclusion and technological progress. 

Development and digitalisation of Uzbekistan’s banking system

Uzbekistan’s 2020-2025 strategy for developing its banking sector has been progressing strongly. The total number of banks operating in the country has reached 35, ten of which are actively engaged with digital banking systems and activities. Private banks’ share of the country’s total assets has also increased sharply over the course of the strategy, growing from 18% at the outset to 38% today. 

By encouraging the ability to make deposits or obtain loans online, the country has been able to substantially increase deposit and loan volumes within its borders. This is not exclusive to personal banking customers; increasingly, small and large businesses are able to solve their financial problems by accessing banking services through digital means.

The success thus far has only encouraged the country to continue its push towards a digital banking transformation. 

Turdaliev said, “Our next goals, for the upcoming years, will be to mainstream the banking services, and among others, to make the factoring services more widely available to all small and micro-business representatives and to increase the scope of such services.”

Factoring

As it stands today, small and micro-sized businesses simply do not have enough collateral to access the loans they need to grow their businesses. Factoring, particularly factoring built on efficient digital systems, is one financing mechanism that can help surpass this barrier. 

Since factoring provides financing on the basis of an invoice, it can often be used by businesses that may not have the requisite history or collateral to access other forms of financing. Digitalised factoring has the added advantage of being able to process requests much faster and with much less paperwork cost, which can open it up as an option for even the smallest of businesses. 

Turdaliev said, “And according to our expectations, as of next year, the number of entrepreneurs fully utilising the factoring services will increase.”

The government’s vision is clear: to foster a financial system where entrepreneurs can access the tools necessary for success. Uzbekistan is positioning itself as a hub of financial innovation in the region by bridging the gap between ambition and resources.

With each reform and innovation, the nation is crafting a future in which businesses of all sizes have the opportunity to thrive.

The post VIDEO | Keeping pace with Uzbekistan’s bold series of reforms appeared first on Trade Finance Global.

A growing economic powerhouse optimally placed between the Middle East and East Asia, Central Asia has historically lagged behind some of its oil-rich neighbours but seems poised for a rebirth.

At ‘The Exploring Receivables and Payable Finance conference,’ hosted by FCI, IFC, and the Central Bank of the Republic of Uzbekistan, Trade Finance Global (TFG) spoke to Neil McKain, Country Manager for Uzbekistan at IFC, Davron Ismailov, CEO of Yangi Finance, and Sanjar Nosirov, Director of the Credit Institutions Regulation Methodology Department at the Central Bank of the Republic of Uzbekistan. They discussed the growth of cross-border and domestic trade within Central Asia and what factoring and supply chain finance can do to help.

Chasing the potential of intra-regional trade in Central Asia

Central Asian countries—Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan—were part of the Soviet Union until its dissolution in 1991. While these nations have maintained strong trade ties with Russia and neighbouring countries like Turkey and China, intra-regional trade remains limited, constrained by inadequate infrastructure and a lack of comprehensive regional trade agreements to reduce tariffs.

Crucial to increasing the economic outlook for Central Asia is facilitating intra-regional trade, which could both boost the regional economy as a whole and lift the poorer countries out of poverty. Even where intra-regional trade is happening, it is even more crucial to facilitate and encourage this by removing tariffs and border hurdles: the top 5 destinations for Uzbek industrial goods are outside Uzbekistan, a healthy sign for the future of regional trade but also a sign that the industry is not growing as it should, stifled by tariffs. Uzbekistan’s top exports include gold, natural gas, and cotton, but the country has also been diversifying into industrial goods such as textiles, machinery, and chemicals, which are increasingly finding markets within the region despite existing barriers.

An attractive new market

In many ways, Central Asia is the perfect market for cautious but ambitious trade finance investors. With a healthy 80 million people, little geopolitical instability, and growing construction, energy, and transportation industries, the market has looked promising for years, but the timing has never been quite as right as now.

Uzbekistan, Central Asia’s most populous country and site of the FCI conference, has been liberalising its economy and political system since the death of its authoritarian dictator in 2016. Part of the liberalisation effort has included reestablishing friendly geopolitical and economic relations with its neighbours – a move that could bode well for future regional growth. 

Infrastructure in Central Asia has always been a challenge. The region has a total surface area the size of the EU and a population one-sixth of the size. The low population density is compounded by mountains and harsh terrain that can make moving people and goods difficult. However, flights between Central Asian capitals are increasing each year, encouraging more collaboration between countries and enabling an increase in shuttle trade.

Trade agreements are also crucial for facilitating trade within the region as well as with the outside world, said McKain. Only two countries in Central Asia are members of the European Economic Zone, Kyrgyzstan and Kazakhstan; “trade between those countries is the highest between any two countries in the whole of Central Asia, so there are some lessons to be learned there about what easier border controls and customer controls can really bring.”  More open borders and lower tariffs could be transformative for the region, giving its internal trade the boost it needs.

However, none of these changes will happen on their own. The International Finance Corporation (IFC) has been supporting the region by helping companies trade across borders, giving them the vital working capital they need to develop strong trade ties with neighbouring countries. Plans to build a “trade corridor” through Central Asia connecting China and Turkey, will see large logistics, transportation, and infrastructure projects hoped to bring in foreign direct investment and make trade easy in the region once and for all. 

Factoring in SMEs

Different strategies for financial support are also important. In the Central Asian context, factoring comes in handy. Factoring allows businesses to sell their outstanding invoices to banks or microfinance organisations, enabling them to access funds instantly rather than waiting 60 or 90 days for payment – which, Nosirov said, is “crucial for SME finance since [these organisations] don’t have a good credit score.” They can leverage their partners’ credit score towards attaining, let’s say, lower interest rates. Unlike traditional lending, factoring primarily relies on the value of receivables as collateral, circumventing the significant barriers SMEs often face in securing traditional bank loans.

The mechanism’s benefits were recognised by Uzbekistan’s presidential decree of 12 August 2024 entitled ‘About measures for the accelerated market development of factoring services’. Key provisions include the establishment of a dedicated electronic factoring platform, which will automate financial transactions and provide real-time debtor analysis, and the liberalisation of foreign currency factoring transactions from January 2025.

The Central Bank of Uzbekistan and IFC have drafted comprehensive legislation based on the UNIDROIT Model Law on Factoring to comply more with international standards on factoring. As Nosirov highlighted, the reforms mean factoring organisations can now register as non-bank credit institutions and facilitate innovative financial mechanisms such as cross-border receivables trading and refactoring.

Ismailov emphasised the importance of this decree as the first document formalising separate activity in Uzbekistan. It also resulted in innovation; Ismailov, for one, sought to make Yangi Finance a “marketplace for banks, for factors, where any company can go put their receivables.” 

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The Central Asian market has been stable for some time, but this year has demonstrated its readiness for trade finance solutions, from infrastructure and investment to legislative enablement.

Uzbekistan’s presidential decree of August 2024 marks a transformative moment, establishing an electronic factoring platform and introducing reforms that align with international standards, with focus on enabling SMEs.

As McKain said, the future of Central Asia is focused on “improving the ability of companies to trade across borders, freeing up working capital, and for those companies to develop those trade ties with their neighbouring countries,” to create a more self-sustaining market, receptive to international investment and economic development.

The post VIDEO | Central Asian trade finance by decree appeared first on Trade Finance Global.

The 2017 Model Law on Electronic Transferable Records (MLETR) provides a framework for aligning national laws. While a framework is a crucial step away from a solution, developments in electronic Bills of Lading (eBLs) is an example of the MLETR’s utility in practice.

At the International Trade Forfaiting Association’s (ITFA) 2024 Christmas party, Deepesh Patel (DP), Editorial Director at Trade Finance Global (TFG) spoke to Pamela Mar (PM), Managing Director of the International Chamber of Commerce’s (ICC) Digital Standards Initiative (DSI). She examined challenges to MLETR adoption, how investment poses a solution, and realised the impacts of the model legislation on trade document digitalisation.

DP: What have been the biggest challenges and solutions with adopting MLETR?

PM: MLETR is deceptively simple because, if you already have an electronic transactions ordinance covering digital signatures and digital transactions, all you need is an amendment, and the amendment isn’t long. It seems straightforward, but the legislation is just the framework for enabling trade digitalisation—it’s not enough to just implement the legislation.

Every government needs to diligently engage with the business sector and coordinate across government departments to ensure that the envisioned changes—trade digitalisation—take root. This requires capacity building, work on standards and interoperability, and integration with systems like the customs single window. It cuts right to the core of government operations. Without this kind of engagement, the changes envisioned under MLETR won’t happen.

So, while it’s important to get the legislation right in any roadmap for MLETR, we believe that business engagement and cross-government collaboration are just as critical. Otherwise, you won’t see any change.

DP: One big part of MLETR adoption is ensuring reliable technology is in place to manage electronic documents. Why is it significant? What’s ICC/DSI doing about it?

PM: As trade digitalises towards a decentralised ecosystem, different systems and networks are increasingly interconnected through data. This is the core focus of interoperability. The assumption is no longer that we will all trade on a single centralised system. The challenge, then, is how to move towards decentralisation while ensuring we all adhere to common principles for security, governance, and the reliability of data transactions. You need to ensure that different systems, used at various points in the supply chain, align with a shared set of principles; and this is set out in the MLETR as the requirements of a reliable system.

The MLETR specifies three key aspects:

1. Singularity, that there is only one version of the record, with a single original electronic record.
2. Integrity, that the record has not been tampered with or altered, and any changes are fully documented using technology.
3. Control, that at any given time, only one party has possession of the record.

Because systems need to prove their reliability in order for businesses to build confidence in transacting through them, DSI developed a reliable systems assurance framework, which is basically a self-assessment. This framework was created in collaboration with one of the world’s leading authorities on digital trust, the Digital Governance Council (DGC), which operates under Standards Canada.

In partnership with DGC, DSI established a working group consisting of auditors, industry representatives, platform operators, and standards authorities—experts in assessment systems and reliability content. Together, they created the framework, which was piloted over the summer by eight different trade platforms and systems. In October, the first Statement of Verification was officially released. It’s a self-assessmnet, but if you submit your result to us, we will issue a ‘statement of verification’ after conducting an expert review.

DP: The results have been published from your recent EBL survey, can you talk them through?

PM: The EBL survey is particularly significant because the first survey was conducted in 2022, prior to the Electronic Trade Documents Act, before many U.S. states adopted the UCC amendments, and before developments in France. At that time, the survey—organised by the FIT Alliance, which includes BIMCO, DCSA, FIATA, Swift, and ICC—aimed to promote EBL adoption.

The first survey, conducted in autumn 2022 showed that about a third of respondents were either exclusively using EBL or using both paper and EBL. The latter group did so because some customers preferred paper while others opted for EBL. In total, 33% were using EBL in some capacity. 

I’m pleased to share that the most recent survey, which concluded on 31 October 2024, found that 49.5% of respondents were now using both EBL and paper. For me, this indicates that we’re nearing a tipping point. If EBL isn’t already part of your supply chain strategy, it really should be. I anticipate that within two years, we’ll be well on the way to 70–80%, which is really good progress.

That said, it’s important to remember that EBL is just one of the earliest and most harmonised digitalised documents. There are 35 other key documents in trade. At DSI, we’re focusing on how to measure progress in these other critical areas. While transport and shipping are covered through the EBL survey, we also need to address finance and payments, compliance at the border, and general policy. 

We’re working hard with the government and private sector to drive digitalisation in practice. But we need to be realistic about whether our efforts are leading to real impact, which is why metrics will be a big part of our work next year. I hope to be able to update you on the progress in 2025!

The post VIDEO | Approaches to the MLETR appeared first on Trade Finance Global.

Change is still a slow march when it comes to gender equality in the financial services industry. While incremental progress has been made, the lingering pay gap remains glaringly apparent. 

It’s easy to point to the gender pay gap as a clear-cut metric of inequality, but the reality is far more complex, hidden beneath structural barriers and cultural norms that still need to be dismantled. Addressing these challenges requires a shift in mindset, a concerted movement to lift each other up, and a willingness to initiate bold, practical actions.

Trade Finance Global (TFG) spoke with Deepa Sinha, Vice President of Payments and Financial Crimes at the Banker’s Association for Financing and Trade (BAFT), to learn more about how these deeply rooted issues took centre stage and discuss strategies for turning awareness to action. 

The ongoing fight against the gender pay gap in finance

The gender pay gap is a longstanding issue that has haunted the finance industry for decades. Today, many financial institutions are still paying women significantly less than their male counterparts. 

It’s not just about pay. Financial services have been slow to recognise the full value of women’s contributions, often relegating them to roles where opportunities for advancement are limited. The pay gap is just a glaring symptom of an underlying condition that involves issues around opportunity, inclusion, and cultural change.

However, awareness of the gap is growing, and that is the first step toward change. 

It’s not enough to simply notice the disparity; action is needed. There are now efforts within the financial services industry to develop focused and structured initiatives that provide women with the tools they need to succeed. 

Whether through mentorship programmes, leadership development opportunities, or actively engaging women in thought leadership, these steps, while not revolutionary, are certainly evolutionary—nudging the industry closer to fairness. 

Women’s unique strengths in transaction banking

But what exactly do women bring to transaction banking that might have been overlooked? There’s something to be said about the unique strengths that women often bring to this field, particularly in areas like payments and financial crime compliance. Women approach challenges differently, and this difference is precisely what the banking sector needs.

Sinha said, “Research suggests that women often approach risk more cautiously, which can be a critical advantage in transaction banking. This perspective helps create robust risk assessments, reducing potential exposure to fraud and other financial crimes.”

Beyond risk management, empathy plays a key role in enhancing customer interactions. Women’s emphasis on empathetic communication builds trust—a quality that cannot be overstated in the world of payments and finance. 

Sinha said, “This empathy allows them to address customer pain points with more nuanced solutions. That’s crucial in transaction banking where trust and relationships are essential.”

This empathy, combined with a detail-oriented approach, becomes especially powerful in fields like compliance. When it comes to anti-money laundering efforts and screening for suspicious activity, an eye for detail can mean the difference between catching a subtle sign of wrongdoing and letting it slip through the cracks.

Tearing down barriers to gender equality

Promoting gender equality in an industry like finance requires confronting structural, cultural, and individual barriers head-on. This means building programmes that mentor and sponsor women while simultaneously addressing the systems that have kept women from advancing for far too long.

Sinha said, “Sponsorship or championship, in particular, where senior leaders actively advocate for women’s advancement, is essential for promoting women in decision-making roles. These programs provide women with the guidance, visibility, and advocacy necessary to advance into senior leadership, where gender representation is still severely limited.”

Mentorship is a key piece of this puzzle—not just traditional mentorship—but reverse mentorship, where younger professionals offer insights to senior leaders, allowing for a two-way exchange of knowledge. By creating spaces where women can be visible, their voices heard, and their work recognised, these types of initiatives can help bring true representation into leadership roles.

But perhaps just as important as these programmes is the need for flexible and inclusive work policies. Many in the workplace balance professional aspirations with caregiving responsibilities, whether for young children or elderly family members. 

Sinha said, “If I have young children that I need to leave the office for at five o’clock every day to go take care of, but I’m able to hop back online later after the kids are down for the evening, that flexibility is invaluable. It’s priceless. When you have a network that is similar to you but is diverse enough to understand what you’re going through, you’re all going to make it work and make it happen together. But that only comes with the relationships that we build with our peers.”

Tearing down barriers also means setting measurable goals. Accountability is crucial; organisations must set clear targets for diversity and track progress. Transparent metrics around hiring, promotions, pay equity, and leadership representation are what will ultimately keep companies honest about their efforts. 

The spark that became Women in Transaction Banking (WTB)

Sometimes, profound change starts with a simple idea.

Sinha said, “Just after our BAFT global annual meeting in 2023 in San Francisco, I was in an elevator discussing women in payments with Maram Al-Jazireh from Arab Bank, and I mused, ‘Why don’t we have anything for women in payments and trade?’. She replied, ‘Well, why don’t you start something?’”

What started as an innocent question became a full-fledged movement. The WTB initiative grew out of the recognition that women in the industry, especially in middle management, need more opportunities to connect, grow, and thrive.

This initiative focuses on several key areas: mentorship, education, sponsorship, and building a community where women can share experiences, learn from one another, and navigate the complexities of the banking world together. This program aims to provide women in middle management with the knowledge and skills they need to succeed.

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The journey towards gender equality in finance is ongoing. While progress has been slow, conversations are starting to turn into actions, and ideas are taking root, growing into initiatives like Women in Transaction Banking. The pay gap is still there, but it is no longer being ignored. Women are stepping into roles that are reshaping the culture of banking, bringing empathy, caution, detail, and collaboration to the forefront.

Rethinking how the financial industry operates at every level, through mentorship, flexible policies, or simply recognising the unique value that diverse perspectives bring, are steps towards a more inclusive future. 

There’s still a long way to go, but as these conversations take hold, there’s a sense that meaningful change is the natural next step.

Did you know that we are hosting Women in Trade, Treasury and Payments 2025 Conference? Follow the link below to find out more.

The post VIDEO | How WTB is addressing structural barriers to achieve gender parity in finance appeared first on Trade Finance Global.