Demica’s 2022 Benchmark Report for Banks in Trade Finance

Demica’s 2022 Benchmark Report for Banks in Trade Finance

At the start of 2022, Demica conducted a survey on the key issues faced by bank practitioners of trade finance around the world. Addressing issues ranging from trade transformation, ESG criteria working their way into underwriting decisions, technology and product design, the findings of this research form the basis of Demica’s Benchmark Report for Banks in trade Finance.

The report covers a wide range of themes and priorities with responses from over 140 trade finance professionals based in 37 countries around the world.

Standing out amongst the findings is clear evidence of a technology procurement super-cycle within banks. Over 70% of bankers expect to replace their trade finance platform within the next five years. 

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In a turbulent time for global trade, Demica’s report takes a deep dive into different areas of working capital finance to provide insight into the business practices and priorities of trade banks, including how 72% of respondents are planning on moving into new geographical markets, product lines or financing new industries, and where they are focusing their efforts.

While banks continue to discuss their role in achieving global environmental, social and governance (ESG) targets, and over 90% of respondents are looking to prioritise ESG in their business practices in 2022, only 15% of respondents have used ESG ratings services in live transactions already. The report delves into the reasons for this and how banks can adapt in the coming year to keep pace with a market of ever-shifting priorities.

The report includes commentary by representatives from BCR, Global Trade Review, ITFA and Microsoft, alongside Demica’s in-house experts to shine a light on the individual challenges of different geographies and product teams, reflecting on 2021 and looking forward to 2022.

Demica CEO Matt Wreford said, “The results of Demica’s first annual Benchmark Report for Banks in Trade Finance have been illuminating and thought provoking. They show a global industry embracing transformation and adapting itself to provide an improved customer offering to achieve growth while mitigating operational risk and delivering efficiencies. We are extremely proud of the insights this has generated and expect this report to become a must-have for any trade finance professional.”

Demica’s 2022 Benchmark Report for Banks in Trade Finance

Maurice Benisty

Maurice joined Demica in October 2017 from Wells Fargo where he was CEO, Commercial Distribution Finance, responsible for a $3.0bn of receivables assets and over 400 people. Maurice joined Wells from GE Capital where he held a number of senior positions including Chief Commercial Officer of GE Capital International. Prior to GE, Maurice worked as a senior investment banker at Lehman Brothers, Bankers Trust and Paribas.