TRAFEC was developed by the Swiss association STSA, in league with a number of prominent trade finance banks. It’s been live since 2011, and had almost “100 corporates in production as of December” of last year, the release said.
According to the release, “TRAFEC provides an authenticated, electronic channel of communication between commodity traders and their banks. It enables trading companies to issue and be advised of trade finance banking instruments, such as documentary credits, collections, guarantees, LOIs, stock and release requests.”
TRAFEC also has a clear audit track, and approaches managing exchanges in a standardized way to make it easier to facilitate trade finance operations.
Furthermore, komgo has developed products to streamline trade finance, and TRAFEC will support building blocks to continue that goal. For its part, TRAFEC will benefit from investment, new technology and opportunities to expand its business.
“A larger user base amounts to a stronger product offering, and this acquisition will help us to quickly scale up our network of users in key geographical markets. We are also excited by the unique functionalities enabled by the new joint offering, which will answer to the needs of a wide range of industry users,” said komgo CEO Souleïma Baddi.
In addition, komgo’s global-enabled network will allow TRAFEC to reap the benefits of a commercial team dedicated to driving adoption and usage this year. One of komgo’s most prominent goals is to reduce some of the inherent inefficiencies that exist in trade finance.
“We have invested with our stakeholders over 10 years to make TRAFEC a high-quality platform that improves the efficiency of trade finance operations. We are, therefore, extremely pleased that this acquisition secures the future of our investments, and the objectives we have been pursuing since the birth of TRAFEC,” said Stéphane Graber, Chairman of eGTSA.