As per the latest reports, the International Chamber of Commerce (ICC) and fintech company Finastra have declared Ecuador to be the first market to execute the pilot of their new SME trade funding marketplace. Earlier, ICC provides guidance to the trade finance market to address COVID-19 disruptions
ICC Tradecomm, which relies on Finastra’s technology, was first declared in March this year while an ICC spokesperson explained that this web-based platform will empower SMEs to get the finance from banks and non-bank lenders on their online invoices, with transaction risks and diligence scoring executed using an automated Know Your Customers (KYC) and Know Your Transactions (KYT) engine.
As per the spokesperson, “Once the SMEs get confirmed by the ICC Tradecomm KYC engine, the new willing members will be capable of uploading invoices which will be risk scored and submitted to lenders for funding. ” Further added that the organized KYC and KYT process will “support the economic sustainability of lending disrupted markets to SMEs with a variety of options of risk profiles.”
John WH Denton AO, Executive Director of the ICC explained, “We are very glad to declare Ecuador as our first pilot market for ICC Tradecomm. We are operating with partners in the areas of Finastra and Quito to facilitate SMEs with short-term liquidity for their business activities. We look forward to it. As our worldwide trading system keeps disrupted, business leaders & global agencies are shifting to pre-pandemic levels by facilitating the solutions and financing required for SMEs. We are committed to bringing it back. Since the SMEs create 99% of Ecuador’s business, we hope ICC Tradecomm will likely have a significant impact on regional businesses across the nation. ”
As per ICC, the marketplace focused on mitigating trade finance difficulties for SMEs and empowering all members to get advantages from upgrades in suitable supply and demand, consequently reducing the worldwide US$1.5tn trade finance gap. Through this entire process, the only agenda of ICC Tradecomm is to facilitate aid to SMEs to further develop their risk financing profile over time through education and proper guidance.
