Best transaction bank for trade finance 2021
Bank of China
Bank of China’s transaction banking department, under the leadership of Wang Xiao, has focused its supply chain finance and trade finance business on supporting companies’ reopening and trade business last year, following the Chinese government’s guidelines for a post-pandemic recovery plan.
The bank leveraged its strong supply chain finance and trade finance platforms and products to support the government’s initiatives of stabilizing cross-border trade and financial inclusion.
First, BoC helped many small and medium-sized enterprises (SMEs) to solve their financing difficulties by undertaking a digital transformation of its supply chain finance system. The system connects with core clients, and accesses information such as invoices and receipts. The information, together with the core clients’ credit standing, helps the SMEs to raise some much-needed financing.
For financial inclusion, the bank developed loan products for SMEs, which can be used for supply chain finance or cross-border trade finance situations. It built a risk control model targeting different companies and industries to further help them to raise money.