ING has teamed up with Tradeteq, an AI-driven platform that makes trade finance accessible for institutional investors, to start distributing our commodity trade finance exposures to non-bank institutional investors.
https://twitter.com/MarcSmulders/status/1231862260072624128
Tradeteq is the first electronic trading platform in the trade finance industry, which allows banks and institutional investors to transact trade assets. It uses advanced analytics and AI-driven credit scoring to give trade finance assets accurate risk scores, helping investors to evaluate opportunities, make better informed decisions and become more efficient by eliminating manual processes.
Tradeteq facilitated a transaction between ING and Federated Hermes, a large American institutional investor, on 4 February 2020.
“This is the first time ING applies technology to facilitate trade finance asset distribution, with potential yet to be unlocked for the distribution of other wholesale and retail banking lending portfolios,” said Rene Hoogland, managing director at ING Balance Sheet Distribution.
The platform offers an end-to-end solution covering three elements: portfolio management and trading automation; risk analytics that provide greater transparency; and securitisation-as-a-service. This allows investors to access trade finance in a standardised way.
“ING’s and Federated Hermes’ use of Tradeteq is a clear example of how the trade finance market is being transformed. Tradeteq is opening up the trade finance market to institutional investors and offering access to an alternative asset class with high levels of transparency and yield opportunities. At the same time, the platform enables banks to reduce their risk exposures and tackle the US$1.5 trillion trade finance gap,” said Christoph Gugelmann, CEO of Tradeteq.
“This transaction shows how Tradeteq’s electronic platform facilitates the distribution of an asset class with short duration in an efficient manner, something not possible until now. The distribution of trade finance assets is a natural evolution of the trade finance market and Tradeteq’s technology is instrumental in helping us achieve this,” said Anthony van Vliet, global head of Trade and Commodity Finance at ING.
Source: ING
