SINGAPORE – Two giants in the fintech space, Bolero International and #dltledgers have entered a partnership to provide an integrated digital trade experience to their customers. This will allow corporates, trading companies, and banks to streamline their trade operations, while reducing both working capital and trade cycle times.
The partnership agreement between Bolero International, the leading trade finance digitisation provider, and #dltledgers, Asia’s leading blockchain platform for trade execution was signed last month. Bolero’s P&I Club-approved electronic Bill of Lading will underpin the #dltledgers platform for both new and existing customers, and the businesses will cooperate in support of newly onboarded subscribers on both platforms.
“It’s heartening to see the power of collaboration in trying times like these” – says Sunil Senapati, Director of Trade Finance for APAC at Bolero.
He was saying this in reference to the grim predictions regarding international trade. The global pandemic has resulted in a finance gap of $1.5T in international trade this year, which economists have warned can even touch an unprecedented $5T soon. Such a shortage of capital would inevitably impact the movement of goods around the globe including essentials like vaccines and food.
“By leveraging each other’s capabilities, we believe we’ve taken a step in the right direction that will have immediate benefits on the wider global trade community. Our aim is to improve the flow of commodities across geographies, while supporting the injection of much-needed liquidity into international trade transactions,” said Senapati. By partnering with #dltledgers, one of the front-runners in global trade digitisation, Bolero hope to increase transparency at all levels in trade – physical, financial and informational, he added.
Farooq Sidiqi, CEO at #dltledgers added, “The addition of a P&I-approved electronic BL means that #dltledgers can now provide true, end-to-end digitisation for its customers, enabling them to make a complete shift from paper-based trade execution to digital.”
In addition to having the ability to deliver immediate efficiencies and cost savings, this will help users of the platform to prepare for the next wave of data-driven trade finance which Sidiqi believes is much closer to reality than many realise. “Here in Singapore, it will also help them stay one step ahead of compliance and regulatory changes. With the new code of conduct announced last month by the Association of Banks in Singapore (ABS), supported by the Monetary Authority of Singapore (MAS), this is an increasingly important consideration for anyone in the sector,” he further said.
Until recently large-scale digitisation had not impacted trade as much as other industries. An increasing number of startups technology providers have now turned their attention towards this deficit. Collaboration between market leaders like Bolero and #dltledgers may come as a welcome sign for those tasked with selecting parties and solutions that will enable them to embark on the transfer towards digital trade.