Michel Kilzi, Managing Partner of FINEON Exchange, in an interview with The Fintech Times about the platform’s value proposition that will offer solutions for emerging market exporters and investors to find new markets and increase their bottom line.
Artificial Intelligence is powering the trade finance industry in new and innovative ways, paving the way for FINEON Exchange’s marketplace, for exporters to match with bank and non-bank funders.
Trade finance, as an asset class, is growing in interest for both institutional investors and the banking and finance sector, as they look to increase yield, diversify and fill unmet funding gaps.
Global risks in trade finance, for short and long term products, are particularly low, compared to other segments with lower default rates on performance guarantees.
This presents an enticing prospect for all concerned, but begs the questions that, in the digital age, what shape can trade finance take as an asset class?
FINEON Exchange, based in Luxembourg, has developed a revolutionary platform of a multipurpose marketplace, catering for European exporters, seeking to get finance for sales into developing and emerging markets.
With an emerging markets global trade finance gap, estimated at USD 1.5 trillion (Global Trade Report, Euler Hermes 2019), the potential for FINEON Exchange is bright.
Set to be launched by the end of Q2 2019, the platform seeks to improve cash flow and optimize working capital through the utilization of innovative structured trade finance for exporters and financiers.
Matchmaking is the name of the game, firstly for exporters to access the best deal possible in finding a bank or a non-banking institution to fulfill its financing needs and, secondly, in providing financial institutions with a marketplace, offering deep market intelligence on client’s risk profiles and finance requirements.
Michel Kilzi, Managing Partner of FINEON Exchange, anticipates the marketplace will create a win-win value ecosystem that supports receivable finance, receivables securitization programmes and a scoring/rating system.
He says this will allow ” industry stakeholders to collaborate, appealing to exporters, funders, scoring agencies and insurers.
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