Fintech startups around the world have delivered an impressive array of benefits to consumers in virtually every market, releasing tech to help people manage their money in easier and more secure ways.
But despite those gains, there is still a major obstacle facing world economies: credit. According to a report by the Asian Development Bank (ADB), limited access to credit has contributed to a $1.5 trillion global finance trade gap, of which 40% is concentrated in developing regions of Asia.
ADB’s Head of Trade Finance Steven Beck did not mince words about the effect this trade gap has on the region, saying in a statement about their recent report: “A sizeable trade finance gap is a drag on trade, growth, and job creation.” Indeed ADP’s report indicates that difficulty in accessing finance among micro, small, and medium-sized enterprises (MSMEs) represents a massive drag on economic growth worldwide.
For their part, ADP has focused their efforts on closing this gap with the launch of their Trade Finance Program (TFP). In a model that is quickly becoming a familiar feature in the modern business landscape, this TFP utilizes next-generation technology to match MSMEs to partner banks in order to facilitate international trade.