bill of lading. Meanwhile, supply chain finance initiatives emerged in the 1990s, but only began to impact the market after 2000. Most recent developments have seen the rise of asset distribution providers, which seek to increase liquidity in the trade finance sector. There is also a push to use blockchain in trade finance. Recent developments According to a round table event hosted by trade financier Deutsche Bank and media company GTR, “Digitalisation of trade finance is something the entire trade finance industry agrees is vital for trade’s longevity”. The rapid development of tradetech and fintech applications is cited to make reporting of environmental, social and corporate governance (ESG) factors a lot easier for the trade finance industry. Examples Digitalisation TradeTech received an early start with providers that developed products for financial institutions to both digitise and automate their payable and receivable processes. This made it possible to upload trade documentation such as invoices and purchase orders, and then enable their validation and processing. Blockchain The latter half of the 2010s witnessed a significant expansion of blockchain technology, and it is also beginning to be applied to international trade. Specifically, the traceability and security of information of a blockchain network have been noted for its potential for increasing transparency between trade partners and supply chains, as well as the subsequent reducing the potential of fraud. Asset Distribution Marketing sellable trade finance assets is another application emerging within TradeTech. The aim of this is to create new sources of liquidity within the market, thereby increasing the funding available to businesses to continue trading. The Basel Accords limit the amount of funding banks can issue to businesses as they are now required to retain a certain volume of their liquidity. Furthermore, there is a perceived risk associated with issuing trade finance to businesses without credit histories. This culminates into a scenario wherein Small and medium-sized enterprises (SMEs) often struggle to access the finance they require. As a result, asset distribution providers seek to alleviate the pressure from banks by distributing trade finance assets to alternative investors, such as a non-bank financial institution. See also Financial technology References Financial markets Financial services Financial technology Technology in society