Changing Face of Trade with Technology

Changing Face of Trade with Technology | Euro Exim Bank
Changing Face of Trade with Technology | Euro Exim Bank
Changing Face of Trade with Technology | Euro Exim Bank

· In recent decades, technology has developed to a great extent. Rapid developments in the fields of Artificial Intelligence (AI) and Blockchain have meant that international trade has become much more streamlined

o For instance, exporters can now leverage the power of automation solutions in order to execute their trades

o Products such as trade management software have made it much easier for them to keep track of their transactions, meet all compliance requirements, and ensure that they are being paid on time

· This blog helps you in understanding how technology is influencing the trade industry and assesses the potential benefits

The Changing Face of Trade

· The trade industry has also come a long way in recent times. There are three main technologies that have influenced the industry.

o The first technology that is improving the trade industry is the Internet of Things (IoT)

  • IoT is already having a major influence on several aspects of the trade industry, including logistics and shipment
  • This technology is helping traders in reducing transaction and costs. It enables traders to track their shipments in real-time, thereby saving time

o Another technology that is shaping the trade industry is AI

  • AI is already helping the logistics aspects of trade by rerouting trucks based on the traffic conditions, processing documents in a quick and efficient manner, as well as reducing process times significantly
  • AI is also helping traders in communicating with their partners. Modern-day AI technology has the ability to translate search queries and connect traders around the world
  • This technology is also proving to be useful in terms of making sure that the correct codes are being assigned to the products. Automated software takes care of aspects such as checking these codes and ascertaining that the accurate tariff is being paid
  • According to estimates, AI has the potential to add 16% to the global economic output by 2030

o The third major technology that is influencing international trade is Blockchain

  • Blockchain is often called the technology of the future. This is because of its advanced capabilities such as quick processing and complete transparency
  • Blockchain is already helping several areas related to trade such as automated payments, quick audits, as well as tracking shipments on a real-time basis

How Technology Could Have an Impact in the Future

· Technology has the ability to transform the trade industry in the future as well

o For instance, areas such as 3D printing are still being developed around the world

  • Additive manufacturing and 3D printing could provide a major boost to the trade industry since it would result in quick customisation of products

o In addition to the above, 5G wireless networks are also being established around the world

  • Large-scale deployment of 5G could result in trades being conducted in a much quicker manner
  • Enhanced connectivity could also mean that the customs checks could become much more streamlined
  • This could result in a situation where transit times can be minimised, and deliveries become much faster

· There is also the possibility of automating the key trade processes using technology, thereby cutting costs and improving margins

Conclusion

· Thus, it is clear that technology is having a major influence on the trade industry. In such a rapidly-changing business environment, importers and exporters can often look to avail help from external sources. Institutions such as Euro Exim Bank offer customised support in the form of financial instruments and bespoke trade advisory services. Euro Exim Bank offers technology-driven financial instruments such as Bank Guarantees and Letter of Credit (LCs). Further information about Euro Exim Bank and its key product offerings is available here.

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