Latest News
THE FUTURE OF GLOBAL TRADE IS BEING REGIONALISED, RESTRUCTURED, AND REROUTED, DMCC REPORT FINDS
- Accelerated regionalisation to define trade, with the emergence of new rival trade blocs and corridors as deglobalisation takes hold
- ‘Friendshoring’ – the movement of operations to allies – will strengthen inter-regional trading hubs in Asia and North America
- Supply chain restructuring accelerated by rise of global security, protectionism and climate concerns
- AI is driving a paradigm shift as real-world adoption scales rapidly to seek out operational efficiencies and predictive analytics
- Future of Trade survey of 150 business leaders found AI as the most transformative technology for global trade
- UAE emerges in top 10 trade hubs for environmentally sound technologies amid growing importance of sustainability trade
- Report offers recommendations to businesses and governments to drive trade resilience and growth despite uncertainty on headwinds
- Full report can be accessed and downloaded here: www.futureoftrade.com
DUBAI, UAE, May 21, 2024 /PRNewswire/ — Global trade growth and resilience will be maintained in 2024 as an accelerated shift to regionalisation drives deeper bilateral and multilateral partnerships. This will be underpinned by deep supply chain restructuring, modest and uneven goods trade growth, a surge in digital services trade and widespread AI adoption – finds DMCC’s latest Future of Trade 2024 report titled “Decoupled and Reconfigured”.
To view the Multimedia News Release, please click:
https://www.multivu.com/players/uk/9269851-future-global-trade-regionalised-restructured-rerouted-dmcc-report/
Global trade is set to recover from 2023’s minor contraction to grow 2.6% in 2024. Services trade will be a core driver of trade growth, in particular digitally delivered services which are outpacing goods and other services trade growth, while the widespread adoption of AI is primed to enhance supply-side efficiencies and trade finance. However, the trade outlook will face multiple headwinds stemming from geopolitical and macroeconomic risks, such as economic slowdowns in China and Europe, persistent inflation and higher-for-longer interest rates, and continued commodity price volatility.
Dr. Hamad Buamim, Chairman of the Board, DMCC, said: “The world is braced for a series of transformative changes as regional trade ties deepen and novel technologies unlock efficiencies on a level we have never seen before. DMCC’s Future of Trade research sees the strong trends that emerged from the Covid pandemic – such as the widespread adoption of digital services and a shift away from globalisation – accelerate and take hold for years to come. As global trade decouples, regions such as Asia and the Middle East will play an outsized role as new alliances form and supply chains de-risk away from the once common globalisation model. The implications of these shifts are profound, as trade policies and conflicts redraw economic maps in real-time.”
Feryal Ahmadi, Chief Operating Officer, DMCC, said: “The world order is causing supply shortages, rerouting cargo, and adding costs to consumers. Services trade is where we expect a major surge given the new wave of digital services flowing across the world. The opportunities of AI on global trade are tangible today, both in supply chains and trade finance, and the dawn of new advanced forms will only strengthen its impact.”
She added: “Businesses and economies are prioritising resilience in the years ahead given the pressures they face today. This is also creating new regional blocs and trade corridors that are heavily indexing on technological prowess given the importance of semiconductors and AI development to businesses around the world. Trade hubs that get this piece right will find themselves at the nexus of global trade flows for the coming decades. Within this landscape, we will see the UAE and hubs like Dubai play an increasingly critical role, not least in the sustainable technologies space as the world races to decarbonise and the Middle East leverages its competitive edge in the energy transition and its role as a global trade facilitator.”
Regionalisation will be driven by new alliances forged from the pressures of geopolitics, climate and technology. This new era of multilateralism will see the emergence of new trade blocs and corridors. It is a marked departure from the drive to globalisation of the last two decades as corporations prioritise resilience over cost savings and efficiencies.
This trend will be heavily influenced by political events, particularly the US election, which could trigger a new wave of protectionist tariffs. Over the next few years, there will be an increase in friendshoring – the movement of operations to allies, aided by regional multilateral agreements – which will strengthen inter-regional trading hubs in Asia and North America. Fast-growing emerging markets that are pursuing non-aligned strategies will benefit from increased trade in the multipolar landscape.
Supply chain restructuring will accelerate as companies look to de-risk their logistics networks against a global rise in conflicts, economic nationalism and protectionism. This may entail longer shipping routes and elevated costs but prioritises resilience. Emerging markets like Mexico, Vietnam and India are positioning themselves as alternative sources of production to China, in particular for manufacturing goods, as companies shift supply chain segments to their markets. Meanwhile, in the Middle East countries like the UAE are capitalising on their relative political neutrality, advanced trade infrastructure through hubs like Dubai, and geographical position between East and West and North and South to carve out an increasingly prominent role as a trade facilitator in this reconfigured trade landscape.
Climate change is accelerating this trend. Driven by policy, shifting consumer consciousness and extreme weather events impacting trade and production costs, governments and companies are increasingly embracing net-zero commitments. Trade is emerging as a key enabler in the pursuit of renewable energy sources and sustainable technologies. Carbon-pricing regimes are evolving across different jurisdictions and will force companies to internalise the carbon cost of production, which will create new trade opportunities for more sustainable suppliers and drive forward a greener trade landscape. Meanwhile, the acquisition and diffusion of environmentally sound technologies (ESTs) is growing as more countries strive to decarbonise their industries. The UAE has emerged in the top 10 importers of ESTs in the world by value, alongside other major hubs such as the United States, China, the Netherlands, Hong Kong, and Singapore, showcasing its rising strategic and regional importance as a global trade hub in the sustainability transition.
AI is set to revolutionise trade. This will herald a paradigm shift in the operating environment, as businesses use AI to optimise supply chains, enhance efficiency and reduce costs through predictive analytics. AI will bring data-driven market insights to capture new business opportunities, and AI-powered trade finance solutions will streamline transactions. The Future of Trade survey of more than 150 trade leaders and policymakers found that AI is the technology with the most transformative effect on trade.
Beyond AI, semiconductors are poised to be the frontline in the drive for technological supremacy. Beyond their indispensable role in electronics, semiconductors are also integral to the green transition as they are essential components in solar panel cells and electric vehicles. The emerging ‘chip war’ between China and the US will escalate trade tensions and drive further regionalisation as both powers ramp up production and shield their industries.
DMCC’s Future of Trade 2024 report puts forward a series of key recommendations to businesses and governments to accelerate growth and counter any headwinds:
Policy recommendations for businesses:
- Reconfigure supply chains against geopolitical shifts. Diversification of suppliers and investing in alternative and additional sourcing strategies can also help mitigate supply chain disruptions.
- Invest in digital transformation and innovation. Companies that invest in understanding and implementing AI stand to benefit from its revolutionary impact. Those that do not run the risk of losing out to competition.
- Prioritise sustainability at the board level. Businesses should elevate sustainability to the top of the board agenda and integrate ESG frameworks into strategic decision-making to ensure alignment with overall national objectives.
- Mitigate climate-related supply chain risks. Businesses should assess climate risks related to key supply chain nodes and operations and implement risk mitigation strategies such as securing property and casualty insurance coverage.
- Engage with non-traditional finance sources. Businesses, particularly SMEs, should explore non-traditional financing. This includes venture capital, private equity, crowdfunding, and impact investing. Larger businesses can collaborate with development banks on blended finance initiatives and benefit from de-risked lending and access to new markets.
Policy recommendations for governments:
- Build new trade relationships. Encouraging exports to regions with strong growth potential can help build new consumer bases, mitigate the impact of slow global trade growth and enhance resilience against economic fluctuations.
- Invest in digital infrastructure and innovation. Supporting the development of AI technologies and digital trade platforms can unlock new opportunities for economic growth and competitiveness.
- Foster AI adoption and regulation. By fostering innovation and addressing concerns related to privacy, bias and accountability, governments can unlock the transformative potential of AI. This can be achieved through investing in AI research and development, supporting AI education and workforce training programmes and establishing regulatory frameworks to ensure ethical AI deployment.
- Invest in sustainable infrastructure and technology. Governments should prioritise renewable energy projects, upgrade transportation networks and support research and development of sustainable technologies.
- Prioritise all policy and non-policy measures to address the trade finance gap. Governments should prioritise collaborating with international financial institutions and multilateral development banks to increase the availability of trade finance instruments and implement regulatory reforms to reduce barriers to trade finance.
Report launch
Ahmed Bin Sulayem, DMCC’s Executive Chairman and CEO, unveiled the report on Tuesday at the Royal Society of Arts in London, United Kingdom. During the launch event, DMCC’s representatives shared their views on the report alongside a panel of international industry leaders and economists from Hitachi ZeroCarbon, the Industrial and Commercial Bank of China (ICBC) and the European Center for International Political Economy (ECIPE).
The Future of Trade is the flagship thought leadership report series from DMCC on the changing nature of global trade. The report examines the impact of global economic trends, geopolitics, technology, sustainability and finance on the future of the trade landscape. The report series has been viewed and downloaded over 1.9 million times, underscoring DMCC’s growing recognition as a leading voice on international trade.
The report is a synthesis of expert opinions and detailed research on the outlook for international trade. DMCC convened nine global roundtables to seek insights from over 150 industry experts, interviewed trade specialists, analysed survey data and developed its commodity indices.
About DMCC
Headquartered in Dubai, DMCC is the world’s most interconnected Free Zone, and the leading trade and enterprise hub for commodities. Whether developing vibrant neighbourhoods with world-class property like Jumeirah Lakes Towers and the much-anticipated Uptown Dubai, or delivering high performance business services, DMCC provides everything its dynamic community needs to live, work and thrive. Made for Trade, DMCC is proud to sustain and grow Dubai’s position as the place to be for global trade today and long into the future. www.dmcc.ae
Video – https://mma.prnewswire.com/media/2417921/DMCC_Future_of_Trade.mp4
Photo – https://mma.prnewswire.com/media/2417916/DMCC_Trade_Report.jpg
Logo – https://mma.prnewswire.com/media/1527681/4707624/DMCC_Logo.jpg
View original content:https://www.prnewswire.co.uk/news-releases/the-future-of-global-trade-is-being-regionalised-restructured-and-rerouted-dmcc-report-finds-302151398.html
The regulation of instant payments is becoming increasingly important as both banks and corporate treasurers seek to leverage faster, more efficient payment solutions. This article provides an overview of instant payments regulation, highlighting the key considerations and implications for banks and corporate treasurers.
What Are Instant Payments?
Instant payments refer to electronic payments that are processed in real-time or near real-time, enabling the transfer of funds between accounts within seconds. These payments can be initiated and completed at any time, providing convenience and efficiency for both individuals and businesses.
Key Characteristics:
- Speed: Funds are transferred almost instantly, reducing the time taken for payment settlement.
- Availability: Instant payments can be made 24/7, including weekends and holidays.
- Irrevocability: Once initiated, instant payments cannot be reversed, ensuring finality of the transaction.
Regulatory Landscape
The regulation of instant payments varies across different jurisdictions, with a focus on ensuring security, efficiency, and interoperability of payment systems.
Key Regulations:
- EU Regulation on Instant Payments: The EU has implemented specific regulations to promote the adoption of instant payments, ensuring that payment service providers offer these services to customers.
- PSD2: The Second Payment Services Directive (PSD2) in the EU includes provisions that support the development and regulation of instant payments.
- Local Regulations: Various countries have their own regulations and guidelines to govern instant payments, focusing on aspects such as fraud prevention, consumer protection, and technical standards.
Implications for Banks
Banks play a critical role in the provision of instant payments and must navigate the regulatory landscape to ensure compliance and provide seamless services to customers.
Key Considerations for Banks:
- Compliance: Banks must comply with relevant regulations and guidelines to offer instant payment services. This includes adhering to technical standards and implementing robust security measures.
- Infrastructure: Investing in the necessary infrastructure to support real-time payment processing and ensure system reliability and availability.
- Customer Education: Educating customers about the benefits and features of instant payments, as well as any potential risks associated with their use.
Implications for Corporate Treasurers
Corporate treasurers can benefit significantly from the adoption of instant payments, which can enhance cash flow management and improve operational efficiency.
Key Considerations for Corporate Treasurers:
- Cash Flow Management: Instant payments can improve cash flow management by reducing the time taken for payment settlement and providing real-time visibility into account balances.
- Operational Efficiency: Faster payment processing can streamline business operations, reducing administrative burdens and improving supplier relationships.
- Risk Management: Corporate treasurers must be aware of the irrevocability of instant payments and implement appropriate controls to prevent fraudulent transactions.
Benefits of Instant Payments
The adoption of instant payments offers several benefits for both banks and corporate treasurers, driving efficiency and enhancing the customer experience.
Key Benefits:
- Convenience: Instant payments provide a convenient and efficient way to transfer funds, reducing the reliance on traditional payment methods.
- Cost Savings: Faster payment processing can reduce the costs associated with payment settlement and reconciliation.
- Enhanced Customer Experience: Offering instant payment services can enhance the customer experience, providing greater flexibility and speed in financial transactions.
Challenges and Future Trends
While instant payments offer numerous benefits, there are also challenges that banks and corporate treasurers must address to fully leverage these services.
Key Challenges:
- Security Risks: Ensuring the security of instant payments is critical, particularly given the speed and irrevocability of transactions.
- Interoperability: Achieving interoperability between different payment systems and networks is essential for the widespread adoption of instant payments.
- Regulatory Compliance: Navigating the complex regulatory landscape and ensuring compliance with relevant regulations can be challenging.
Future Trends:
- Increased Adoption: The adoption of instant payments is expected to continue growing, driven by regulatory support and customer demand.
- Technological Advancements: Advances in technology, such as blockchain and artificial intelligence, are likely to further enhance the capabilities and security of instant payments.
- Global Standardization: Efforts to develop global standards for instant payments will promote interoperability and facilitate cross-border transactions.
Conclusion
The regulation of instant payments is crucial for ensuring the security, efficiency, and interoperability of payment systems. Banks and corporate treasurers must navigate the regulatory landscape and invest in the necessary infrastructure to provide seamless and secure instant payment services. As the adoption of instant payments continues to grow, it offers significant benefits for enhancing cash flow management, operational efficiency, and the overall customer experience.
Source of the news: The Paypers
The post Instant Payments Regulation: Overview for Banks and Corporate Treasurers appeared first on HIPTHER Alerts.
Regulators have issued a joint warning highlighting the risks associated with partnerships between banks and fintech companies. This warning underscores the need for careful management of these relationships to ensure regulatory compliance and mitigate potential risks.
Overview of the Joint Warning
The joint warning, issued by a coalition of financial regulators, emphasizes the importance of robust risk management practices when banks partner with fintech companies. These partnerships, while beneficial in driving innovation and enhancing customer services, also introduce new risks that must be addressed.
Key Points of the Warning:
- Regulatory Compliance: Banks must ensure that fintech partners comply with all relevant regulations and standards.
- Risk Management: Robust risk management frameworks must be in place to identify, assess, and mitigate risks associated with fintech partnerships.
- Data Security: Ensuring the security and privacy of customer data is paramount, particularly given the increasing prevalence of cyber threats.
- Operational Resilience: Banks must ensure that fintech partnerships do not compromise their operational resilience and ability to deliver critical services.
Benefits of Bank-Fintech Partnerships
Despite the risks, partnerships between banks and fintech companies offer significant benefits, driving innovation and enhancing the customer experience.
Key Benefits:
- Innovation: Fintech companies bring innovative technologies and solutions that can enhance banking services and products.
- Customer Experience: Partnerships with fintechs can improve the customer experience by offering faster, more efficient, and personalized services.
- Cost Efficiency: Fintech solutions can help banks reduce costs and improve operational efficiency through automation and digitalization.
Risks Associated with Bank-Fintech Partnerships
The joint warning highlights several risks associated with bank-fintech partnerships that must be carefully managed.
Key Risks:
- Regulatory Risk: Ensuring compliance with complex and evolving regulatory requirements is a significant challenge.
- Cybersecurity Risk: Fintech partnerships can introduce cybersecurity vulnerabilities, making it essential to implement robust security measures.
- Operational Risk: The integration of fintech solutions into banking operations can pose operational risks, particularly if not managed effectively.
- Reputational Risk: Any issues or failures in fintech partnerships can damage the bank’s reputation and customer trust.
Strategies for Managing Risks
To mitigate the risks associated with fintech partnerships, banks must adopt comprehensive risk management strategies and ensure rigorous oversight.
Key Strategies:
- Due Diligence: Conducting thorough due diligence on fintech partners to assess their regulatory compliance, security practices, and financial stability.
- Contractual Safeguards: Including robust contractual safeguards in partnership agreements to outline responsibilities, expectations, and compliance requirements.
- Continuous Monitoring: Implementing continuous monitoring and assessment of fintech partnerships to identify and address emerging risks.
- Collaboration with Regulators:: Engaging with regulators to ensure that partnerships comply with regulatory requirements and to stay informed of any changes in the regulatory landscape.
The Role of Technology
Technology plays a crucial role in managing the risks associated with bank-fintech partnerships, offering tools and solutions that enhance oversight and compliance.
Key Technologies:
- RegTech Solutions: Regulatory technology (RegTech) solutions can automate compliance processes, ensuring that fintech partnerships adhere to regulatory requirements.
- Cybersecurity Tools: Advanced cybersecurity tools and solutions can enhance the security of fintech partnerships, protecting against cyber threats.
- Risk Management Platforms: Integrated risk management platforms can provide real-time visibility into partnership risks and support proactive risk mitigation.
Conclusion
The joint warning issued by regulators highlights the need for careful management of bank-fintech partnerships to ensure regulatory compliance and mitigate potential risks. While these partnerships offer significant benefits, including innovation and enhanced customer experience, they also introduce new risks that must be addressed through robust risk management strategies. By leveraging technology and engaging with regulators, banks can effectively manage these risks and capitalize on the opportunities presented by fintech partnerships.
Source of the news: American Banker
The post Regulators Issue Joint Warning on Bank-Fintech Risks appeared first on HIPTHER Alerts.
Nasdaq Inc. has reported earnings that exceeded analysts’ expectations, driven by a surge in fintech sales. This strong performance underscores the growing importance of fintech solutions in driving financial market innovation and growth.
Overview of Nasdaq’s Financial Performance
Nasdaq’s latest earnings report reveals impressive financial performance, with profits surpassing estimates due to robust growth in its fintech segment.
Key Financial Highlights:
- Revenue Growth: Nasdaq reported a significant increase in revenue, primarily driven by its fintech sales.
- Earnings Beat: The company’s earnings per share (EPS) exceeded analysts’ expectations, highlighting its strong financial performance.
- Fintech Segment: The fintech segment emerged as a key growth driver, contributing significantly to the overall revenue increase.
The Role of Fintech in Nasdaq’s Growth
Nasdaq’s fintech solutions have played a pivotal role in its recent financial success, offering innovative technologies that enhance market operations and customer services.
Key Fintech Solutions:
- Market Technology: Nasdaq’s market technology solutions provide advanced trading, clearing, and market surveillance capabilities to financial institutions and exchanges.
- Data and Analytics: The company’s data and analytics solutions offer valuable insights and support informed decision-making for market participants.
- Corporate Solutions: Nasdaq’s corporate solutions include governance, risk management, and compliance tools that help companies navigate complex regulatory environments.
Factors Driving Fintech Sales Growth
Several factors have contributed to the surge in Nasdaq’s fintech sales, reflecting broader trends in the financial technology sector.
Key Drivers:
- Digital Transformation: The ongoing digital transformation in the financial industry has increased demand for advanced fintech solutions.
- Regulatory Compliance: Growing regulatory requirements have driven demand for compliance and risk management solutions.
- Market Volatility: Increased market volatility has highlighted the need for robust trading and market surveillance technologies.
Strategic Initiatives
Nasdaq has undertaken several strategic initiatives to capitalize on the growing demand for fintech solutions and drive long-term growth.
Strategic Focus Areas:
- Innovation: Continuously investing in innovation to develop cutting-edge fintech solutions that address the evolving needs of the financial industry.
- Partnerships: Forming strategic partnerships with other technology providers and financial institutions to enhance its product offerings and expand market reach.
- Global Expansion: Expanding its presence in key markets around the world to capture new growth opportunities and serve a broader client base.
Future Prospects
Nasdaq’s strong financial performance and strategic initiatives position the company for continued growth in the fintech sector. The company plans to leverage its technological capabilities and market expertise to drive further innovation and expand its fintech offerings.
Growth Opportunities:
- Product Development: Developing new fintech products and features to meet emerging market needs and regulatory requirements.
- Mergers and Acquisitions: Exploring potential mergers and acquisitions to enhance its technology portfolio and market position.
- Customer Engagement: Enhancing customer engagement through personalized solutions and services that address specific client needs.
Conclusion
Nasdaq’s impressive financial performance, driven by a surge in fintech sales, underscores the growing importance of fintech solutions in the financial market. The company’s strategic focus on innovation, partnerships, and global expansion positions it for continued growth and success. As Nasdaq continues to leverage its fintech capabilities, it is well-positioned to drive financial market innovation and deliver value to its clients and shareholders.
Source of the news: Reuters
The post Nasdaq Profit Beats Estimates as Fintech Sales Soar appeared first on HIPTHER Alerts.
-
Latest News6 days ago
China remains stabilizing force for global economic growth
-
Latest News5 days ago
Kylian Mbappé and Accor Forge Alliance to Empower Younger Generations
-
Latest News4 days ago
Martello Re announces closing of $1.3 billion capital raise consisting of $935 million in equity and a $360 million upsize of the Company’s credit facility
-
Latest News4 days ago
Market Dojo Celebrates Prestigious Inclusion in Ardent Partners 2024 Strategic Sourcing Technology Advisor
-
Latest News5 days ago
BioCatch completes best first half in company history, grows ARR by 43% YoY
-
Latest News2 days ago
Driving Innovation Forward: CFI Welcomes Seven-Time Formula 1™ World Champion Lewis Hamilton as new Global Brand Ambassador
-
Latest News5 days ago
COP28 President calls on all stakeholders to bring spirit of solidarity that delivered UAE Consensus to drive implementation and sustainable socio-economic development
-
Latest News2 days ago
KEYSTONE BANK HOLDS CUSTOMER FORUM, REITERATES COMMITMENT TO EXCELLENT SERVICE DELIVERY