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CGD in the News

Could Regtech Bridge The Trade Finance Gap In Emerging Economies? (Global Trade Review)

March 18, 2008
From the article:
New technologies such as machine learning and blockchain could help solve the de-risking problem among banks globally and widen access to trade finance in emerging markets.
That’s according to a new study by Centre for Global Development, which assesses six new regulatory technologies – machine learning, biometrics, big data, know your customer (KYC) utilities, blockchain and legal entity identifiers (LEIs) – and their potential to address the de-risking problem.
De-risking has hit many emerging economies since the financial crisis. Amid fears of heavy penalties for breaching anti-money laundering (AML) regulations, the rising costs of conducting the requisite due diligence and the lack of confidence in the respondent banks’ risk control, financial institutions, particularly in the US and Europe, have pulled back from what they consider to be high-risk markets.

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