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While the Internet and e-commerce have created paradigm shifts in the functionality and liquidity of many financial markets, trade finance has, for the most part, remained unaffected. In fact, buying, trading and selling commercial trade finance instruments, trade-related commercial paper, vendor loans and syndications have not changed much over the past 50 years. Fax, telex and overnight mail are still the primary transaction modes.
So why hasn't the "e-commerce revolution" impacted the trade finance arena as of yet, and what is holding it back? Further, what looms on the horizon for an "e-volution" of the trade finance business?
First, some ...
Source: HighBeam Research, Will the Internet E-Volutionize Trade Finance?