The role of banks in the traditional corporate supply chain has changed considerably over the past few years, driven largely by new technologies that enable buyers and sellers to communicate directly and efficiently with each other and the resultant shift to open account trading between them (and with their own suppliers and customers).
It is estimated that today, over 80% of all trade activity is conducted through open accounts. The bank’s traditional ‘intermediary’ role (e.g. providing trust services/letters of credit) has shifted considerably, to the point that a bank may be involved only in trade financing and payment.
