26 July 2017
download the report now

Commerzbank steps up focus on trade finance transformation

04 July 2017  |  10420 views  |  0 Commerzbank building signage 5

Commerzbank is to work with the Fraunhofer-Institute for Material Flow and Logistics (IML) in Dortmund to test and develop new scenarios for digitisation of trade and supply chain finance using distributed ledgers and the Internet of Things.

Commerzbank says new concepts in digital trade finance based around distributed ledger technology, IoT and smart contracts constitute the basis for new trade ecosystems, new supply chain finance concepts, faster transaction processing and new solutions in working capital management.

Bernd Laber, group executive trade finance & cash management corporate clients, Commerzbank, comments: “We are working on several projects and in a number of consortiums also with other international banks on the digitisation of bank products and bank services, and on applications for blockchain technologies. As a corporate bank the focus on future supply chains of our customers is of paramount importance and we will develop this in co-operation with Fraunhofer Institute.“

A new report from the International Chamber of Commerce, finds that 50% of banks expect most of trade flow processes to be digitised by 2027 - while an almost equal portion expect the evolution to take from 10-25 years. In addition, nearly 44% of the 225 respondents from 98 countries identify digitisation and technology as priority areas of focus.

However, while there is optimism with respect to the potential of new technology, only 12% of respondents perceive a degree of market uptake and nearly 40% see limited progress in this area - with almost 18% reporting that technical capabilities and digital technology are ahead of trade finance business practice, the ICC reports.

Michael Henke, director of the Fraunhofer Institute for Material Flow and Logistics (IML), is undeterred: "I am convinced that technologies like blockchain and smart contracts will become the central enabler for the intelligent interlinking of physical and financial supply chains. With Commerzbank as innovative cooperation partner we will elaborate new, fast and secure solutions for the supply chains of the future.”

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Banking consortium awards Digital Trade Chain contract to IBM

Banking consortium awards Digital Trade Chain contract to IBM

27 June 2017  |  10639 views  |  1 comments | 11 tweets | 23 linkedin
Mizuho to go live with DLT-based trade finance application

Mizuho to go live with DLT-based trade finance application

26 April 2017  |  14686 views  |  1 comments | 7 tweets | 12 linkedin
Seven banks plan blockchain platform for SMEs

Seven banks plan blockchain platform for SMEs

16 January 2017  |  19254 views  |  0 comments | 54 tweets | 54 linkedin
Commerzbank creates corporate transformation programme

Commerzbank creates corporate transformation programme

10 January 2017  |  11582 views  |  0 comments | 4 tweets | 13 linkedin
CBA and Wells Fargo combine blockchain and IoT to revolutionise trade finance

CBA and Wells Fargo combine blockchain and IoT to revolutionise trade finance

24 October 2016  |  15252 views  |  2 comments | 32 tweets | 35 linkedin
Emirates NBD and Icici demo blockchain application for trade finance

Emirates NBD and Icici demo blockchain application for trade finance

12 October 2016  |  7444 views  |  1 comments | 6 tweets | 15 linkedin
Commerzbank plans job cuts and digitalisation to boost profits

Commerzbank plans job cuts and digitalisation to boost profits

30 September 2016  |  8782 views  |  0 comments | 14 tweets | 13 linkedin
Microsoft takes it own blockchain medicine in trade finance deployment

Microsoft takes it own blockchain medicine in trade finance deployment

27 September 2016  |  8415 views  |  0 comments | 15 tweets | 29 linkedin
Bank consortia look to distributed ledgers and smart contracts to rewire trade finance

Bank consortia look to distributed ledgers and smart contracts to rewire trade finance

10 August 2016  |  21082 views  |  2 comments | 53 tweets | 57 linkedin
Commerzbank launches marketplace lending platforms for SMEs

Commerzbank launches marketplace lending platforms for SMEs

23 June 2016  |  8349 views  |  1 comments | 10 tweets | 13 linkedin
Trade finance first to be disrupted by Internet of Things say bank CIOs

Trade finance first to be disrupted by Internet of Things say bank CIOs

13 October 2015  |  12137 views  |  0 comments | 24 tweets | 20 linkedin
Commerzbank incubator leads $15m investment in B2B commerce platform Traxpay

Commerzbank incubator leads $15m investment in B2B commerce platform Traxpay

23 September 2014  |  8289 views  |  0 comments | 6 tweets | 2 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit vasco.com/news/PSD2-compliant-solutionsvisit www.finastra.comvisit www.www.fisglobal.com

Who is commenting?

A Finextra member Finextra Member Commented on: US firm to implant emp...
A Finextra member Finextra Member Commented on: US firm to implant emp...
A Finextra member Finextra Member Commented on: US firm to implant emp...

Top topics

Most viewed Most shared
UK judge blocks £14bn class action suit against MastercardUK judge blocks £14bn class action su...
10330 views comments | 7 tweets | 6 linkedin
PayPal strikes deals with Chase and CitiPayPal strikes deals with Chase and Citi
9891 views comments | 10 tweets | 6 linkedin
Machines could take over 30% of bank jobs: McKinseyMachines could take over 30% of bank jobs:...
9317 views comments | 28 tweets | 27 linkedin
Yet more deals announced in payments sectorYet more deals announced in payments secto...
9277 views comments | 7 tweets | 21 linkedin
Wells Fargo Control Tower to map customer's digital footprintsWells Fargo Control Tower to map customer'...
8113 views comments | 7 tweets | 5 linkedin

Featured job

Competitive
New York, NY - USA (some flexibility on location)

Find your next job