Current challenges in trade finance guarantee processes : case: trade finance industry
Väyrynen, Katrin (2020)
2020
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-202005047121
https://urn.fi/URN:NBN:fi:amk-202005047121
Tiivistelmä
Trade finance is the financing of international trade transactions. Largely used by export companies, it includes various of financial instruments used in a company's lifecycle to reduce risks.
Trade finance processes are complex and time consuming, which the researcher noticed during her internship at a Finnish exporter. However, the industry is currently developing and in an emerging state of digitalization.
The thesis is done to research the current challenges medium-to-large sized exporters face in the guarantee processes. It aims to clearly define the main challenges and their origin. It also aims to find possible solutions through digitalization to the challenges.
The research is conducted using a qualitative research method in form of a case study, with a problem based examination of the current challenges. A sample of 40 specialists was chosen with the advisor’s help from a trade finance community. The survey was sent to the sample via email, enabling flexible responding time. For the theoretical framework, risk management and guarantees are studied.
Based on the research findings, the industry is facing some challenges, the main one being the issues with systems. The overall satisfaction to the current guarantee processes is good. Possible solutions to the challenges are introduced.
Trade finance processes are complex and time consuming, which the researcher noticed during her internship at a Finnish exporter. However, the industry is currently developing and in an emerging state of digitalization.
The thesis is done to research the current challenges medium-to-large sized exporters face in the guarantee processes. It aims to clearly define the main challenges and their origin. It also aims to find possible solutions through digitalization to the challenges.
The research is conducted using a qualitative research method in form of a case study, with a problem based examination of the current challenges. A sample of 40 specialists was chosen with the advisor’s help from a trade finance community. The survey was sent to the sample via email, enabling flexible responding time. For the theoretical framework, risk management and guarantees are studied.
Based on the research findings, the industry is facing some challenges, the main one being the issues with systems. The overall satisfaction to the current guarantee processes is good. Possible solutions to the challenges are introduced.