Research Programs

Trade Finance

International supply chain management should be becoming more sophisticated and intuitive as digital solutions are more readily incorporated, yet key product and service limitations are still encountered frequently according to the East & Partners (E&P) Trade Finance program.

 

The research and analysis is based on direct interviews with a representative, natural sample of 2,000 importers and exporters twice a year, running continuously since 2004. E&P’s robust research methodology also provides scope for extensive reanalysis by state and sector.

 

Several major banks experienced material market share and wallet share declines in 2015, resulting in a prevailing view that the majors can no longer be “everything to everyone”. One of the most interesting interplays between Australian and International banks emerge from their market positioning as either a transaction banking or trade led offering across Letter of Credit and Open Account financing products and services.

 

Commonwealth Bank and Westpac continue to actively cross sell into their dominant transaction banking underpinning, whereas ANZ and HSBC are characterised by a distinctively “trade led” offering.

 

Trade finance is inherently a working capital solution providing risk mitigation and cash flow management support to firms with cross border goods, services and capital flows.

 

E&P trending analysis reveals that supply chain management initiatives are cited as the biggest inhibitor of smooth, profitable cross border transactions for institutional enterprises. One third of all institutional customers seek improved supply chain management initiatives, yet up to three quarters of corporate and SME customers are more concerned with better liquidity support.

 

Distribution by Enterprise Segment % of Total
SME 43
Corporate 38
Institutional 19