The International Chamber of Commerce (ICC) and Finastra have announced that they are bringing the trade funding marketplace pilot to Ecuador.
ICC TRADECOMM – designed to tap into the international $1.5 trillion trade finance gap – should enable local SMEs to unlock new financing options.
The ICC and Finastra have confirmed that Ecuador will be the first market in which they will “run the pilot for their trade funding marketplace (announced earlier this year).”
The ICC TRADECOMM™ marketplace, powered by Finastra, aims “to reduce trade finance barriers for SMEs and enable all parties to benefit from improvements in matching supply and demand, ultimately decreasing the global $1.5 trillion dollar trade finance gap,” according to a release.
ICC Secretary General, John W.H. Denton AO said that they’re looking forward to Ecuador being their first pilot market for ICC TRADECOMM. They’re pleased to work with their colleagues at Finastra and on the ground in Quito to offer SMEs with short-term liquidity for their trade operations, John added.
He also mentioned:
“At a time when our global trade system remains fractured, it’s incumbent upon business leaders and international organizations to equip SMEs with the required solutions and funding to build back their activity to pre-pandemic levels. Given that SMEs make up 99% of Ecuador’s businesses, we believe that ICC TRADECOMM will have a transformational impact on local businesses throughout the country.”
During the pilot phase, bank and non-bank financers will be given the chance to finance local SME invoices through a risk-based approach. The focus will be “on engaging with early adopters in the region to support local platform development, with the goal being to bring the solution to all SMEs and financers there,” the announcement noted.
Carlos Zaldumbide, General Secretary of ICC Ecuador said the country is well placed for the pilot as they have “a growing economy supported by a strong SME backbone.” Carlos revealed that they are “already in the process of bringing important e-invoicing initiatives to our country and this will be a tremendous complementary initiative that could really make a difference.”
Simon Paris, CEO at Finastra remarked:
“Ecuador is a growing, emerging market and we hope the pilot will demonstrate how we can help to facilitate significant levels of trade financing for local organizations, creating the showcase that will then allow ICC TRADECOMM to enable more markets where we could potentially facilitate billions of dollars in trade.”