Non-traditional data aids trade credit scoring

Banks have responded to fintech innovation in credit risk assessment by introducing more sophisticated processes for determining the financial health of trade finance customers.

Many small and medium-sized enterprises (SMEs) face the same challenge: they need trade funding, but lack the extensive documentation that helps funders understand the risk profile of their business.

A recent joint Trade Finance Global (TFG)/World Trade Organization (WTO) report raises questions over how to provide a more favourable framework for assessing credit risk through digital innovations, considering the new analytics that are available.

It is easy to forget that there is a lot of financial data still to be explored

Prag Sharma, Citi

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