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ICC Banking Commission Update on digitalisation in trade finance

Explore the updates and initiatives of the ICC Banking Commission's Working Group on Digitalisation in Trade Finance. This group aims to simplify and reduce the cost of trade finance, enhance industry service, and stimulate trade flows, particularly for SMEs. Key objectives include ensuring the "e-compatibility" of ICC rules, legal review of data acceptance, minimum standards for digital connectivity, and global advocacy efforts to advance digitization in trade finance. Discover the potential benefits, such as increased access to trade finance, alignment of regulatory frameworks, reduction of paperwork, and modernization of processes for digital-led trade growth.

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ICC Banking Commission Update on digitalisation in trade finance

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  1. ICC Banking Commission Update on digitalisation in trade finance March 2019 |Minsk

  2. ICC Working Group on Digitalisation – past 12 months • Mandate to identify ways to overcome challenges in digitalisation in trade finance: • Potential to simplify and reduce the cost of trade finance; • allows banks to better serve the industry in particular SMEs and stimulate trade flows • The main objectives of this Group • “E-compatibility” of ICC rulesEvaluate ICC rules such as UCP and ensure they are “e” compliant. i.e. enabling banks to accept data vs. documents • eUCP & eURC • Uniform Rules for Digital Trade (URDT) • 2 Enforceability & acceptance of data vs. documentsConduct a legal review of acceptance of data vs. documents (e.g. BLs) that banks use as security for trade finance transactions • 3. Minimum standards for digital connectivityDevelop a set of minimum standards for digital connectivity of service providers across legal, liability, informationsecurity and technology

  3. Advocacy efforts: Global advocacy campaign to advance digit in trade finance 4 BILLION documents circulating in trade system (Source: World Bank) Increase access to trade finance (unleash SME working capital) 1998 WTO Ecommerce Governance Framework Align regulatory frameworks (remove barriers/scale up solutions) $1.5 TRILLION trade finance gap (Source: ICC) Replace cumbersome documentation with technology (cut unnecessary bureaucracy/cost) 15% COST each shipment is paperwork (Source: Maersk) Modernise & improve rules, processes & systems (enable digital-led trade growth) ROADMAP

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