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Covid-19: The ‘new normal’ in global trade and trade finance

Comdex Official
Jul 23 · 6 min read
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The Covid-19 challenge

The year 2020 has seen several aspects of the fundamentals of business being restructured throughout the global economy, owing to the ever-increasing impact of the Covid-19 pandemic. More than half a year in, the popular narrative surrounding Covid-19 has slowly changed from ‘when it ends…’ to becoming ‘the new normal’. Global sentiment is increasingly tilting towards adapting to a new way of life and doing business, as a return to the ‘old way’ seems too far fetched a thought given the current circumstances.

A case for digitization in business.

One sector that is greatly affected by this crisis is the commodities trade sector. This sector forms the lifeblood of global supply chains, empowered by cross-border trade finance that provides liquidity and leverage to optimize gross transaction volume. While global retail sentiment has had an adverse impact on the trading volumes and opportunities present in this sector, it is essential for organizations involved in this sector to ensure thorough digitization of their business processes in order to maximize efficiency as well as the opportunity for the future. The next stage in the evolution of business has already dawned upon us prematurely, with the adoption of digital technology accelerating in recent months. Experts have estimated that the Covid-19 virus has forced industries to jump ahead to an extent of more than 5 years forward in their digital evolution life-cycle. Traditional ways of conducting business are undergoing rapid changes as the adoption of technologies that enhance connectivity and data management has increased significantly.

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The ‘new normal’ of tech — interoperability

The challenge, however, does not simply end at the digitization in trade processes. With the widespread use of digital technologies across each function of various enterprises, large amounts of data are being generated behind each step of a transaction. However, the business-to-business interactions of these technologies are presently complex, inefficient, and highly prone to errors. As a result, the data generated remains siloed, existing in several different places at once. Inter-business collaboration becomes difficult since all the parties maintain and preserve what is their version of the “truth”. The digital siloes formed in such a system are often referred to as “digital islands”, where solutions aimed at making individual processes more efficient, coupled with a lack of infrastructure to facilitate communications across platforms and networks hamper the potential for businesses to use data effectively.

Comdex Official

Written by

Comdex is a blockchain-based trade settlement, discovery platform revolutionizing global commodity trade by minimizing settlement times & maximizing efficiency.

Comdex Official

Written by

Comdex is a blockchain-based trade settlement, discovery platform revolutionizing global commodity trade by minimizing settlement times & maximizing efficiency.

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