GTR Asia Singapore 2018: 04 September 2018 Interview prep bullet points

GTR Asia Singapore 2018: 04 September 2018: Interview prep bullet points, Gopul Shah

https://www.youtube.com/watch?v=0shlj1a8WX0

1. What are some of the key trends in trade financing you are seeing currently in terms of emerging markets, disruptive technologies and innovation in financial solutions?

o Increasingly, Structured supply chain financing solutions are replacing conventional trade financing structures. Banks want transparency and control over physical commodities, cash, transaction and title over goods which Supply chain finance solutions provider. While customers also want to monetize their working capital assets competitive cost of funding.

o The hyper-interaction of technology, digitization, tech-giants, social media, and millennials is now dynamically shaping the supply chain, banking, enterprise strategy, and its leadership.

o Block-chain, cloud storage and computing, geotagging of assets, crypto-currencies, artificial intelligence, and robots are increasingly used for transparent and scalable transaction processing. These technologies will become the industry norm in future as all industry players digitize and connect their systems with each other.

o The lines between e-commerce platforms and traditional brick and mortar companies are also blurring; both companies are now trying to occupy each other’s space.

o The tech giants have deep pockets (and phenomenal market valuations) that can help them acquire any legacy supply chain company. The recent examples are Amazon acquisition of Wholefoods while Walmart acquisition of Flipkart is an extension of the legacy supply chain.

o Tech-giants, techno-pruners, techno-financiers, and e-platforms have disrupted the supply chain, banking, and finance market. They also offer/cross-sell innovative solutions like e-cash, e-lending, e-insurance, etc. Many e-solutions are ‘asset-lending light, pay as you use solutions’ or ‘containerized shipment or warehousing solutions via e-commerce.

o The asset-light Fintech and Just in time licensing and renting solution offers a significant reduction in asset investments, debt, and risks. One best example is a resource sharing model offered by ‘uber-technology’ that is democratizing use and renting of an asset without the need for investment.

o Blockchain has immense benefits but getting the enterprise supply chain and its stakeholders to trust, validate, and connect will remain a continuing challenge.

o For many service providers, the biggest challenge is to connect to multiple block chains developed by each company.

o The National Trade Platform (NTP) initiative of Singapore Government (that also connect HK) is a classic alternative to block-chain.

 This platform connects and facilitates data validation by multiple independent stakeholders. The NTP offers a standardized public platform which drives standardization, common protocol, trust, authentication and involves SME’s and stakeholders.

 There is a risk that these public platforms (like stock exchanges) could transform the trading space as it has the potential to disintermediate legacy supply chains.

2. How competitive is the market at present with many international banks and non-bank financiers entering the Asian space, and how have this benefited companies looking for financing?

o Competition is on the rise in many geographic specific banks now internalizing their operations

to diversify their portfolio and reach out to clients globally expanding the business. Most Chinese and Middle Eastern banks are increasing presence globally.

o These banks have not only helped borrowers diversify their borrowing base but also provided local geographic specific domain knowledge of industry and customers in the host countries. These banks also offer tailored solutions that are specific to the host countries.

3. How have attitudes changed with regards to banking relations and what is the role of banks and credit agencies in meeting the changing needs of the market?

o Banking relationship has always been proactive and professional!! We cannot underscore the importance of a good bank and a financial institution partner.

4. How in your experiences has growth in markets such as China and India provided

opportunities in other emerging markets?

o The growth in India and China has been expanded supply chains, empowered people and lifted millions out of poverty. The success and learning from China and India has also helped companies to grow markets in Africa, Vietnam, and other Asian countries. China’s initiatives

around BRI will further improve the scope of markets and supply chains. The democratization of technology and digitization has further expanded the scope and size of the market, reduced information asymmetry, and arbitrages and improved the customer purchasing power.

5. What is it about Asia that has seen it position itself as a global trade leader?

o Asian markets offer significant demographic dividends, growth opportunities, cost-efficient supplies or services, and innovations that can be replicated elsewhere.

The interview covers only part of the Q&A to accommodate time and diversity!