Sibos 2025: the time for digital trade is now

The trade finance gap is not getting any smaller.

The gap — the space between the level of demand from borrowers and the lending they are able to access — has grown from around $US1.5 trillion in 2019 to an estimated $US2.5 trillion today, according to The Asia Development Bank. That’s a staggering number.

As an economy, it is critical to find a way to close this gap and support the small- and medium-sized enterprises that are the lifeblood of Australia's future. And one of the most powerful tools we have to close that gap is right in front of us: digitalisation.

Trade digitalisation is perhaps the single most transformative opportunity in trade finance today. And innovative technologies are evolving to make the opportunity even greater — and more accessible.

Digitalisation is not just about making processes faster, or more efficient — although that’s certainly part of it. It’s about unlocking access to capital, especially for small- and medium-sized enterprises.

According to the Organisation for Economic Co-operation and Development (OECD), digitising trade can help economies significantly increase trade flows. Just a 1 per cent increase in “domestic digital connectivity” can lead to a 2.1 per cent jump in domestic trade, as well as a 1.5 per cent rise in cross-border trade.

In addition, the OECD’s Digital Services Trade Restrictiveness Index suggests a 0.05 point-reduction in restrictiveness is “associated with” a 72.5 per cent rise in exports.

All that’s missing is for the economy to take full advantage.

Mix

Increasingly accessible and transformative technology is helping pave the way for trade digitalisation. Today’s global trade landscape is a dynamic mix of disruption, adaptation, and innovation.

However, trade uncertainty is at an all-time high, with shifting tariffs and geopolitical tensions prompting companies to rethink supply chains, and move toward nearshoring and friend-shoring to reduce exposure.

Despite these challenges, trade growth remains resilient, especially in emerging markets like India, Vietnam, and Indonesia, which are driving long-distance trade to record levels. As a resource-rich nation located in the Asia-Pacific, Australia relies heavily on international trade to drive growth, support employment, and maintain influence. In 2024, exports of goods and services accounted for 24.71 per cent of Australia's gross domestic product.

Meanwhile, artificial intelligence (AI) and cybersecurity are reshaping logistics everywhere. On the enterprise front, digital transformation is accelerating, with tech like generative AI-powered trade finance solutions gaining traction.

Regional trade agreements, and skills-based hiring are also emerging as key themes, signaling a trade world that’s not just surviving — but evolving.

Tools

The key driver behind that evolution is technology.

While artificial intelligence is a theme that gets a lot of attention, it’s because AI has the potential to revolutionise the way trade works (if it’s not already doing it). A report from Goldman Sachs suggests AI could lift global GDP by 7 per cent over the next decade alone.

A World Economic Forum report suggests it could add $US4.4 trillion to the economy every year, reshaping industries and international trade. 

At ANZ, we see AI changing the landscape in documentary trade. A key tenet of this process is ensuring documentation compliance to enable payment or financing. Historically this has relied entirely on humans, which can often constrain volumes.

Today, genAI can be deployed to assist with document examination in documentary trade. What was once a time-consuming, manual process can now be completed it in a fraction of the time — improving accuracy and freeing people to focus on higher-value work.

The opportunity for tokenisation is also being seen across global trade. A Standard Charted report suggests by just 2034, the total value of demand for tokenised assets could rise as high as $US30.1 trillion, with trade finance assets making up 16 per cent of that figure.

As a trade-finance tool, tokenisation can help simplify traditional trade processes, as well as address working capital and cash flow challenges. 

At ANZ, work is underway to investigate if tokenisation, in the form of digital currencies, can help increase efficiency by automating settlement and freeing up liquidity in wholesale markets.

Underpinning tech advances like these examples is, of course, data. Efficient and secure use of data will be critical as paper is removed entirely from trade and trade-finance processes

ANZ is currently exploring how to extract data directly from source systems to meet financing requirements without relying on physical documents. The bank is working with a large technology company to extract data from customer enterprise systems and ingest it into ANZ’s environment, testing how we can support things like processing and financing requirements

What’s clear from that process so far is that, as these systems develop, standardisation will be critical.

Connectivity

According to the OECD, just a 1 per cent increase in digital connectivity across an economy can lower trade costs, which have risen significantly in recent decades.

ANZ understands how embracing technology can help businesses take advantage of the modern trade economy.  The bank’s origins are rooted in trade, having been founded in 1835 as the Bank of Australasia, specifically to support trade and commerce in the Pacific.

ANZ is the largest trade bank in Australia and New Zealand, with a presence in 29 markets across the Asia Pacific, Europe, and the Americas. And with the impact of modern technology, ANZ is not just talking about the future, it’s building it.

Damian Kwok is Head of B2B Payables Propositions and Trade Digitalisation at ANZ Institutional