Credit, Collections & Insolvency News
Banks are accelerating their investment in trade finance technology to unlock growth, according to research by FIS.
The research found that over the next 12 months, 55% of global banks surveyed plan to increase spending on their trade finance platforms. For all survey respondents, key priorities include improving operational efficiency (28%), enhancing customer experience (28%), and upgrading existing product functionality (15%). This focus reflects a broader push toward digital transformation as financial institutions seek to modernize aging systems, with 18% of banks surveyed reporting that their trade finance technology platform is over a decade old.
The survey results indicate 52% of banks are investing in in-house development and 48% are working with external partners. Notably, 19% of banks have now consolidated trade finance transactions onto a single third-party platform.
Technology is also playing a growing role in live client transactions, with the use of artificial intelligence and machine learning reported by respondents having surged by 50% in just a year, reaching 45% in 2025 compared to 32% in 2024.
Alongside digital innovation, banks remain focused on expansion, with 80% of the banks surveyed expecting asset size growth in the next 12 months. According to the survey, payables finance has overtaken receivables discounting as the fastest-growing supply chain finance product, reflecting evolving corporate needs.
Matt Wreford, CEO, FIS Supply Chain Finance (formerly Demica), at FIS said “From this research, it’s clear that inflexible and inefficient systems are no longer meeting clients’ needs. With geopolitical risk and interest rates having significant impacts on the market, alongside cost efficiency and security concerns influencing decision-making, investment in trade finance technology is now more crucial than ever to help banks transform the customer experience and drive growth.”
