As global trade expands, trade finance is growing and evolving along with it. Most notably, the traditionally paper-based processes around trade finance are being pushed into the electronic age. Trade finance units are also dealing with new Basel III capital requirements, along with the rest of the banking industry. And trade finance methods are increasingly being used as part of companies' supply chain finance efforts.

A recent survey by Aite Group showed that while relatively few banks provide electronic interfaces for trade finance processes, more than three-quarters said they are seeing demand for electronic trade finance from their corporate clients.

One step in this direction is a relatively new instrument, the bank payment obligation (BPO), which replaces the paper documents that are the basis for letters of credit with data that moves between the buyer's and seller's banks.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including and

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Susan Kelly

Susan Kelly is a business journalist who has written for Treasury & Risk, FierceCFO, Global Finance, Financial Week, Bridge News and The Bond Buyer.