Understanding trade digitalization
Lots of talk about digitizing trade - but confusing? This simple table makes sense of it all. Here is trade digitalization in plain English.
Digitizing (or digitalizing) trade is a big win for individual companies and for the economy as a whole.
But it is not a one-size-fits-all story. Different people get different wins in different ways.
Behind the table are three separate initiatives:
Standardising documentation generally in trade.
See the Digital Standards Initiative ("DSI") - click: here.
Enabling digital negotiable agreements to be used in trade.
These are electronic bills of lading (eBLs), electronic bills of exchange (eBoEs) and electronic promissory notes (ePNs), mentioned in the table.
These are based on MLETR (the UN model law for electronic transferable records) and enabled by new laws that are being introduced, for example, the ETDA 2023 introduced in England & Wales.
Cash against data:
trade finance for today's supply chains based on a digital implementation of the legacy "cash against documents" system;
Next steps: trade digitalization
If you are a corporate treasurer or CFO and interested in understand what trade digitization can do for you - please contact us at PrimaTrade and we can help you navigate what is involved.
It is surprisingly simple and the wins are significant. Take a look at this case study to see how much you can save: click here.