In a recent Trade Finance Matters contribution piece, author David Gustin explored why financial institutions are struggling to find the best ways to provide supply chain finance to their customers, and also open account capabilities to their clients beyond traditional trade.
According to Gustin, there numerous B2B mobile applications to choose from. Additionally, banks have many network players – Taulia, Tungsten and Tradeshift to name a few – that can help them keep pace with changing technologies.
So, what is the hold up?
One major issue is that banks claim to be hit with various forms of regulatory requirements and compliance, and that there is not much room for innovation.
“None of these banks are thinking interoperability with networks,” Gustin wrote. “Maybe none is harsh, but for them, innovation is giving access to information on a mobile device. That’s great for executives on the go, but the future of electronic interoperability, while not here, will come.”
Proper supply chain finance is a critical issue in the business world. Just last month, PYMNTS.com discussed how five business associations joined with the International Chamber of Commerce (ICC) Banking Commission to regulate and synchronize market terminology for global supply chain finance products and services.
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