The International Chamber of Commerce (ICC) and Finastra, a London-based financial services software and cloud solutions provider, have committed to a strategic initiative to tackle the growing trade finance gap.
Both organisations are orchestrating an ecosystem and exploring the development of a financing marketplace that will provide micro, small, and medium-sized enterprises (SMEs) with access to a broader set of alternative finance resources in order to help keep the global economy moving forward.
The ICC TRADECOMM™ marketplace, powered by Finastra, aims to reduce trade finance barriers for SMEs and enable all parties to benefit from improvements in matching supply and demand.
ICC TRADECOMM will allow investors to finance trade transactions against title documents and equip SMEs with a broader set of solutions to mitigate perceived risk, the burden of compliance, and enhance access to finance.
In the coming months, ICC and Finastra will plan a series of pilots across select markets before launching the platform globally.
During the initial launch period, bank and non-bank financers will be given the opportunity to transact on invoices from SME suppliers from select marketplaces.
Subsequent versions of ICC TRADECOMM may include other trade documents, such as letters of credit, bills of lading, and other bank-syndicated products, in a move towards creating seamless documentary flow.
ICC Secretary General, John W.H. Denton AO said,
“If SMEs are going to survive the ongoing economic crisis, they need tools and solutions that will enable them to trade now. Only then will many micro-, small-, and medium-sized enterprises be able to seize new business opportunities and build back their activity post-pandemic.
We are extremely pleased to partner with Finastra on ICC TRADECOMM, one of the solutions that ICC will unveil as part of its commitment to connect investors and SMEs looking for short-term liquidity for their international trade operations.”
Simon Paris, CEO at Finastra said,
“We have an obligation to redefine finance for good, to help reduce this gap and drive global economic equality. Our plans with ICC to establish and orchestrate this ecosystem are designed to do exactly this and keep trade moving.
Our shared ambition is to facilitate millions of dollars in trade financing for SMEs. We are at the beginning of an exciting journey together, a journey towards reducing friction in trade and providing open finance for all.”
