Global Shipping Business Network (GSBN), a consortium of maritime companies building a blockchain platform for supply chain data exchange, has formed a new Trade Finance Advisory Group with Bank of China, DBS Bank and HSBC as members.
The mandate of the Trade Finance Advisory Group is to improve access to trade financing for small and medium enterprises by leveraging digital data from supply chains. The group will also work together to test digital systems such as electronic Bills of Lading and other supply chain data to improve the financing process for banks.
This announcement builds upon the recent ramping up of the GSBN programme, following the rollout of its Cargo Release application across Asia and partnerships with eight major port groups in China.
“The COVID-19 pandemic has demonstrated many areas where paper can be eliminated in favour of more efficient, trusted digital systems. Given the symbiotic relationship between the shipping sector and finance, we must explore how we can connect with, and enhance banking processes to bridge the $1.5 trillion trade finance gap,” said Bertrand Chen, CEO at GSBN.
“Breaking siloes between supply chains and trade finance is a critical part to unlocking new value in global trade, which is why we’re delighted to have three financial leaders join our mission.”