What impact has the COVID-19 had on trade financing, and what actions are corporations taking to limit risk?

In the year 2020, COVID-19 has profoundly impacted the world’s corporate environment. With the dearth of capital for fintech stocks and commercial banking, coronavirus wreaked havoc on developing economies. As a result of closed trade and tourism borders, the economies of the least developed nations have been severely impacted. The pandemic precipitated the most significant obstacles to world trade.

At the end of August 31, 2022, Triterras generated 26.4 million dollars in revenue, a 15% increase compared to the prior fiscal year’s similar period of 22.9 million dollars. Kratos platform service charges were reduced by 75% from the previous financial year comparable period to 5.7 million dollars, largely due to a significant decrease in the total volume of transactions, which decline was largely the result of the ongoing difficulties faced by the company as a result of COVID-19’s effects on its existing client base.

Owing to the competition, non-traditional providers will rise, and banks will need to accelerate their digitalization initiatives and develop their products and business models to seize the opportunity. Here are the precautions trade financing companies are required to take:

1. Seek strength in long-term viability.
2. Boost productivity with digitalization.
3. Keep abreast of developing dangers.
4. Unlock the benefits of sector-wide innovation.