{"id":44228,"date":"2021-03-19T10:57:18","date_gmt":"2021-03-19T10:57:18","guid":{"rendered":"https:\/\/www.tradefinanceglobal.com\/?page_id=44228"},"modified":"2025-02-26T14:27:36","modified_gmt":"2025-02-26T14:27:36","slug":"introduction-to-trade-digitalisation-tradetech","status":"publish","type":"page","link":"https:\/\/www.tradefinanceglobal.com\/tradetech\/introduction-to-trade-digitalisation-tradetech\/","title":{"rendered":"The Role of Technology"},"content":{"rendered":"\n<div class=\"wp-block-columns container w-auto is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\"><div class=\"block-header-without-image d-flex flex-direction-column justify-content-center\">\n    <h2 class=\"fs-32 fw-700 fs-xs-28 not-for-table-content\" id=\"heading-the-role-of-technology\">\n        The Role of Technology    <\/h2>\n    <div class=\"d-grid grid-col-2 grid-col-xs-1\">\n                            <div class=\"\">\n                <div>Last updated on 26 Feb 2025<\/div>\n                <div>19 Mar 2021 . 3 min read<\/div>\n            <\/div>\n            <\/div>\n    <\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\"><figure class=\"wp-block-post-featured-image\"><img loading=\"lazy\" decoding=\"async\" width=\"869\" height=\"352\" src=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/The-Role-of-Technology.jpg\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"\" style=\"object-fit:cover;\" srcset=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/The-Role-of-Technology.jpg 869w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/The-Role-of-Technology-300x122.jpg 300w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/The-Role-of-Technology-768x311.jpg 768w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/The-Role-of-Technology-320x130.jpg 320w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/The-Role-of-Technology-370x150.jpg 370w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/The-Role-of-Technology-414x168.jpg 414w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/The-Role-of-Technology-600x243.jpg 600w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/The-Role-of-Technology-372x151.jpg 372w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/The-Role-of-Technology-450x182.jpg 450w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/The-Role-of-Technology-380x154.jpg 380w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/The-Role-of-Technology-285x115.jpg 285w\" sizes=\"auto, (max-width: 869px) 100vw, 869px\" \/><\/figure><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns container w-auto is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\"><div class=\"block-buttons bg-anti-flash-white rounded p-24 h-100 xs-h-auto\" style=\"background-color: #f2f5f7 !important;\">\n  <div class=\"d-grid grid-col-1 grid-col-xs-1 mb-12\">\n    <h4 class=\"not-for-table-content fs-24 fw-700\" id=\"heading-tradetech-overview\">TradeTech Overview<\/h4>\n  <\/div>\n  <div>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/tradetech\/\">\n        Introduction to TradeTech      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/tradetech\/introduction-to-trade-digitalisation-tradetech\/\">\n        Technology in Trade      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/blockchain\/\">\n        Introduction to Blockchain      <\/a>\n      <\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\">\n<div class=\"wp-block-columns container w-auto country-quick-link h-100 mb-0 is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33%\"><div class=\"block-buttons bg-anti-flash-white rounded p-24 h-100 xs-h-auto\" style=\"background-color: #ebf5f4 !important;\">\n  <div class=\"d-grid grid-col-1 grid-col-xs-1 mb-12\">\n    <h4 class=\"not-for-table-content fs-24 fw-700\" id=\"heading-technologies\">Technologies<\/h4>\n  <\/div>\n  <div>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/tradetech\/cloud-computing\/\">\n        Cloud Computing      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/tradetech\/optical-character-recognition-ocr\/\">\n        Optical Character Recognition (OCR)      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/tradetech\/application-programming-interfaces-api\/\">\n        Application Programming Interfaces (API)      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/tradetech\/big-data-analytics\/\">\n        Big Data Analytics      <\/a>\n      <\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33%\"><div class=\"block-buttons bg-anti-flash-white rounded p-24 h-100 xs-h-auto\" style=\"background-color: #e5f5ff !important;\">\n  <div class=\"d-grid grid-col-1 grid-col-xs-1 mb-12\">\n    <h4 class=\"not-for-table-content fs-24 fw-700\" id=\"heading-developing-technologies\">Developing Technologies<\/h4>\n  <\/div>\n  <div>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/tradetech\/internet-of-things-iot\/\">\n        Internet of Things (IoT)      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/tradetech\/artificial-intelligence-ai\/\">\n        Artificial Intelligence (AI)      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/tradetech\/distributed-ledger-technology-dlt\/\">\n        Distributed Ledger Technology (DLT)      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/tradetech\/quantum-computing\/\">\n        Quantum Computing      <\/a>\n      <\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33%\"><div class=\"block-buttons bg-anti-flash-white rounded p-24 h-100 xs-h-auto\" style=\"background-color: #E6FAFE !important;\">\n  <div class=\"d-grid grid-col-1 grid-col-xs-1 mb-12\">\n    <h4 class=\"not-for-table-content fs-24 fw-700\" id=\"heading-resources-guides\">Resources &#038; Guides<\/h4>\n  <\/div>\n  <div>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/tradetech\/research\/\">\n        TradeTech Research      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/tradetech\/itc-ai-guide\/\">\n        ITC AI Guide 2024      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/editions\/tradetech-whitepaper-2021\/\">\n        TradeTech Whitepaper 2021      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/editions\/blockchain-dlt-trade-guide-2020\/\">\n        WTO DLT Guide 2020      <\/a>\n      <\/div>\n<\/div><\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns container w-auto is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\">\n<p><\/p>\n\n\n<div class=\"bg-light-blue d-flex gap-16 h-auto p-16 rounded xs-flex-direction-column\">\n    <div class=\"\">\n    <img decoding=\"async\" style=\"min-width:100px;max-width: 150px\" src=\"https:\/\/secure.gravatar.com\/avatar\/c5c7f46c74d085beb1f2c4863fc91b31?s=160&#038;d=mm&#038;r=g\" class=\"w-100 rounded\">\n  <\/div>\n  <div class=\"col-span-2 col-span-xs-1\">\n    <div class=\"d-flex flex-direction-column gap-16 fs-16 justify-content-between\">\n      <div class=\"fs-16 fw-700\">Deepesh Patel<\/div>\n      <div class=\"fs-14 fw-400 elipsise-2-line\" title=\"Deepesh Patel is Editorial Director at Trade Finance Global (TFG) and host of Trade Finance Talks. Deepesh regularly chairs and speaks at international industry events held by the IFC, EBRD, IMN, WTO, Financial Times and Economist Impact, as well as industry associations including ICC, FCI, ITFA, ICISA and BAFT.\">\n        Deepesh Patel is Editorial Director at Trade Finance Global (TFG) and host of Trade Finance Talks. Deepesh regularly chairs and speaks at international industry events held by the IFC, EBRD, IMN, WTO, Financial Times and Economist Impact, as well as industry associations including ICC, FCI, ITFA, ICISA and BAFT.      <\/div>\n      <div>\n        <a class=\"text-black fs-12 small-link-arrow-right\" href=\"https:\/\/www.tradefinanceglobal.com\/posts\/?author=57\">\n          <span>\n            Latest Post          <\/span>\n        <\/a>\n      <\/div>\n    <\/div>\n  <\/div>\n<\/div>\n\n\n<p><\/p>\n\n\n<div class=\"block-cta p-24 h-auto rounded\">\n    <h4 id=\"heading-download-our-tradetech-whitepaper\" class=\"fs-24 fw-700 elipsise-2-line dark:color-white not-for-table-content\">\n    Download our Tradetech Whitepaper  <\/h4>\n  <p class=\"fs-16 fw-400 dark:color-white\">Accelerating trade digitalization to support MSME financing<\/p>\n  <div class=\"mb-20\">\n    <img loading='lazy' alt='Editions-Tradetech-Whitepaper-2021' style='width:auto; height:200px'  width='auto' height='auto' src='https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Editions-Tradetech-Whitepaper-2021-150x150.jpg' srcset='https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Editions-Tradetech-Whitepaper-2021-300x300.jpg 300w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Editions-Tradetech-Whitepaper-2021-150x150.jpg 150w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Editions-Tradetech-Whitepaper-2021-320x320.jpg 320w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Editions-Tradetech-Whitepaper-2021-370x370.jpg 370w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Editions-Tradetech-Whitepaper-2021-414x414.jpg 414w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Editions-Tradetech-Whitepaper-2021-200x200.jpg 200w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Editions-Tradetech-Whitepaper-2021-250x250.jpg 250w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Editions-Tradetech-Whitepaper-2021-162x162.jpg 162w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Editions-Tradetech-Whitepaper-2021-159x159.jpg 159w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Editions-Tradetech-Whitepaper-2021-123x123.jpg 123w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Editions-Tradetech-Whitepaper-2021-190x190.jpg 190w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Editions-Tradetech-Whitepaper-2021.jpg 600w' \/>  <\/div>\n      <a href=\"https:\/\/www.tradefinanceglobal.com\/login\/?redirect_url=https%3A%2F%2Fwww.tradefinanceglobal.com%2Fwp-json%2Fwp%2Fv2%2Fpages%2F44228\"  class=\"dark:text-black px-16 py-8 rounded bg-black text-white fs-14 fw-700 dark:bg-tale\">\n      <span>Download<\/span>\n    <\/a>\n    <\/div>\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-content\">Content<\/h2>\n\n\n<div class=\"block-table-content h-auto bg-white auto\">\n    <ul class=\"table-content\"><\/ul><\/div>\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\">\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-role-of-technology\">The Role of Technology<\/h2>\n\n\n\n<p style=\"font-size:16px\"><\/p>\n\n\n<div class=\"block-content align bg-tale rounded p-24 fs-16 h-auto wp-block-acf-block-content\"style=\"background-color: #FFFFFF;color: #002F4D;\"\n>\n    <p>Many of the challenges that face micro-, small-, and medium-sized enterprises (MSMEs) in their search for financing are broad in scope and cannot easily be addressed by any single solution. It is easy to say that technology is the answer here, and while innovation will help banks distribute trade finance assets to smaller investors and better understand the risks associated with MSMEs, there is also a greater change needed. At this early stage of the adoption of such technological innovation, there is very little evidence to suggest that it is being utilized by corporates and MSMEs just yet. That said, it is difficult to dispute that technological innovation and the various emerging technologies in the industry are a critical piece in the puzzle of overcoming these challenges.<\/p>\n<\/div>\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p style=\"font-size:16px\">While acknowledging that technology is not a panacea, this article will examine the role that technology plays in the ecosystem, and will introduce some of the digital technologies that seem poised to play a crucial role in paving the way towards a comprehensive solution.&nbsp;<\/p>\n\n\n\n<p style=\"font-size:16px\">It is also important to note that MSMEs are often not aware of the opportunities that digital technologies can offer them and of the solutions that alternative financiers can provide. They are often under the impression that technology is simply not for them and view it as complex and costly. This may be due to the idea that some digital trade technology solutions focus more on trying to explain the technology itself rather than simplifying the explanation and service offering to MSMEs, leading to a lack of audience engagement. Continual efforts to make MSMEs aware of the plethora of opportunities available to them are important. Governments may have a role to play in this respect to raise awareness and provide education for MSMEs.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-technological-interplay-stronger-together\">Technological interplay: stronger together<\/h2>\n\n\n\n<p><\/p>\n\n\n\n<p style=\"font-size:16px\">Over the past several decades, digital technology \u2013 from&nbsp;<a href=\"https:\/\/www.tradefinanceglobal.com\/tradetech\/artificial-intelligence-ai\/\">Artificial Intelligence<\/a>&nbsp;(AI) to the&nbsp;<a href=\"https:\/\/www.tradefinanceglobal.com\/tradetech\/internet-of-things-iot\/\">Internet of Things<\/a>&nbsp;(IoT) and&nbsp;<a href=\"https:\/\/www.tradefinanceglobal.com\/tradetech\/distributed-ledger-technology-dlt\/\">Distributed Ledger Technology<\/a>&nbsp;(DLT) \u2013 has slowly begun to penetrate&nbsp;<a href=\"https:\/\/www.tradefinanceglobal.com\/supply-chain-finance\/\">supply chains<\/a>,&nbsp;<a href=\"https:\/\/www.tradefinanceglobal.com\/international-trade\/\">trade<\/a>&nbsp;and&nbsp;<a href=\"https:\/\/www.tradefinanceglobal.com\/trade-finance\/\">trade finance<\/a>. Figure 1 (below) illustrates the complex interplay between digital tools and demonstrates how each technology relies on the capabilities of others to deliver its most powerful benefits. Some of them work to collect and deliver data, others analyse and interpret this data, and still others provide the infrastructure which allows this communication to occur.<\/p>\n\n\n\n<p style=\"font-size:16px\">Take, for example, the role of the IoT in this relationship. IoT devices and sensors on their own provide minimal value. However, when they are combined with the secure transmission capabilities of DLT and the analytical capabilities of big data analytics tools enabled by AI, they are able to deliver meaningful and actionable information.&nbsp;<\/p>\n\n\n\n<p style=\"font-size:16px\">Based on this, the technologies should not be thought of in isolation, but rather in the context of their mutually complementary profiles. Figure 1 depicts some of the interactions that these digital tools have with one another.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"768\" height=\"543\" src=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Interplay-and-interconnectivity-of-tradetech-technologies-in-trade-1-768x543-1.jpg\" alt=\"\" class=\"wp-image-109972\" srcset=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Interplay-and-interconnectivity-of-tradetech-technologies-in-trade-1-768x543-1.jpg 768w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Interplay-and-interconnectivity-of-tradetech-technologies-in-trade-1-768x543-1-300x212.jpg 300w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Interplay-and-interconnectivity-of-tradetech-technologies-in-trade-1-768x543-1-320x226.jpg 320w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Interplay-and-interconnectivity-of-tradetech-technologies-in-trade-1-768x543-1-370x262.jpg 370w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Interplay-and-interconnectivity-of-tradetech-technologies-in-trade-1-768x543-1-414x293.jpg 414w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Interplay-and-interconnectivity-of-tradetech-technologies-in-trade-1-768x543-1-424x300.jpg 424w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Interplay-and-interconnectivity-of-tradetech-technologies-in-trade-1-768x543-1-283x200.jpg 283w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Interplay-and-interconnectivity-of-tradetech-technologies-in-trade-1-768x543-1-354x250.jpg 354w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Interplay-and-interconnectivity-of-tradetech-technologies-in-trade-1-768x543-1-229x162.jpg 229w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Interplay-and-interconnectivity-of-tradetech-technologies-in-trade-1-768x543-1-225x159.jpg 225w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Interplay-and-interconnectivity-of-tradetech-technologies-in-trade-1-768x543-1-174x123.jpg 174w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Interplay-and-interconnectivity-of-tradetech-technologies-in-trade-1-768x543-1-269x190.jpg 269w\" sizes=\"auto, (max-width: 768px) 100vw, 768px\" \/><\/figure>\n\n\n\n<div class=\"wp-block-group\" style=\"font-size:16px\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p><\/p>\n\n\n\n<p style=\"font-size:16px\">Digital technologies \u2013 in particular the combination of&nbsp;<a href=\"https:\/\/www.tradefinanceglobal.com\/tradetech\/big-data-analytics\/\">Big Data<\/a>, new algorithms and cloud computing \u2013 have been driving the rise of platforms and what is now referred to as the&nbsp;<em>platform economy.&nbsp;<\/em>The platform economy is reshaping global trade. Many of the most valuable companies globally are now based on a platform business model, such as digital marketplaces that enable groups to interact and transact. When it comes to MSME financing, in particular trade finance, many projects take the form of platforms. These platforms often leverage several of the digital technologies depicted above. The platform economy opens vast new opportunities but also raises considerable new challenges. A detailed explanation of the platform economy is beyond the scope of this article.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-digital-technologies-in-trade\">Digital technologies in trade<\/h2>\n\n\n\n<p><\/p>\n\n\n\n<p style=\"font-size:16px\">The eight technologies emphasized here can be thought of as existing within the framework of a technology stack. Each layer can be used to facilitate and enhance the layer(s) above. The stack is depicted below. The following sections will introduce the layers in this stack beginning from the foundation and working upwards.&nbsp;<\/p>\n<\/div><\/div>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"1300\" height=\"775\" src=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Technologies-and-tradetech-by-layer-and-types-analytical-connectivity-data-input-and-infrastructure-1-scaled.jpg\" alt=\"Layers\" class=\"wp-image-44295\" srcset=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Technologies-and-tradetech-by-layer-and-types-analytical-connectivity-data-input-and-infrastructure-1-scaled.jpg 1300w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Technologies-and-tradetech-by-layer-and-types-analytical-connectivity-data-input-and-infrastructure-1-300x179.jpg 300w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Technologies-and-tradetech-by-layer-and-types-analytical-connectivity-data-input-and-infrastructure-1-1024x610.jpg 1024w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Technologies-and-tradetech-by-layer-and-types-analytical-connectivity-data-input-and-infrastructure-1-768x458.jpg 768w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Technologies-and-tradetech-by-layer-and-types-analytical-connectivity-data-input-and-infrastructure-1-1536x916.jpg 1536w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Technologies-and-tradetech-by-layer-and-types-analytical-connectivity-data-input-and-infrastructure-1-2048x1221.jpg 2048w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Technologies-and-tradetech-by-layer-and-types-analytical-connectivity-data-input-and-infrastructure-1-320x191.jpg 320w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Technologies-and-tradetech-by-layer-and-types-analytical-connectivity-data-input-and-infrastructure-1-370x221.jpg 370w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Technologies-and-tradetech-by-layer-and-types-analytical-connectivity-data-input-and-infrastructure-1-414x247.jpg 414w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Technologies-and-tradetech-by-layer-and-types-analytical-connectivity-data-input-and-infrastructure-1-503x300.jpg 503w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Technologies-and-tradetech-by-layer-and-types-analytical-connectivity-data-input-and-infrastructure-1-335x200.jpg 335w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Technologies-and-tradetech-by-layer-and-types-analytical-connectivity-data-input-and-infrastructure-1-419x250.jpg 419w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Technologies-and-tradetech-by-layer-and-types-analytical-connectivity-data-input-and-infrastructure-1-272x162.jpg 272w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Technologies-and-tradetech-by-layer-and-types-analytical-connectivity-data-input-and-infrastructure-1-267x159.jpg 267w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Technologies-and-tradetech-by-layer-and-types-analytical-connectivity-data-input-and-infrastructure-1-206x123.jpg 206w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Technologies-and-tradetech-by-layer-and-types-analytical-connectivity-data-input-and-infrastructure-1-285x170.jpg 285w\" sizes=\"auto, (max-width: 1300px) 100vw, 1300px\" \/><\/figure><\/div>\n\n\n<div class=\"wp-block-group\" style=\"font-size:16px\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p><\/p>\n\n\n\n<p style=\"font-size:16px\">*Note: This framework attempts to illustrate the interplay between the different technologies. We have chosen to display these categories from a business perspective \u2013 with emphasis on what each technology is used for \u2013 rather than from a purely technological perspective. For instance, from a purely technological perspective, DLT is a trusted database. However, from a business perspective, it is used to connect parties directly, on a person-to-person (P2P) basis, in a trusted environment. As such, it has been categorized as part of the connectivity layer.&nbsp;<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-infrastructure-technologies\">Infrastructure technologies<\/h3>\n\n\n\n<p><\/p>\n\n\n\n<p style=\"font-size:16px\">Infrastructure technologies enable other technologies and software systems to interact with external data sources. They generally refer to an organization\u2019s technological environment and can include&nbsp;<a href=\"https:\/\/www.tradefinanceglobal.com\/tradetech\/cloud-computing\/\">cloud computing<\/a>.&nbsp;<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-data-input-technologies\">Data input technologies<\/h3>\n\n\n\n<p><\/p>\n\n\n\n<p style=\"font-size:16px\">Data input technologies are those that are able to provide data to a system. This can consist of digitally native data, such as those gathered by IoT sensors, or the conversion of non-digital data into a digitized format, such as those generated by the use of&nbsp;<a href=\"https:\/\/www.tradefinanceglobal.com\/tradetech\/optical-character-recognition-ocr\/\">optical character recognition<\/a>&nbsp;(OCR).<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-connectivity-technologies\">Connectivity technologies<\/h3>\n\n\n\n<p><\/p>\n\n\n\n<p style=\"font-size:16px\">Connectivity technologies are technologies that allow various systems and\/or actors to connect, facilitating the exchange of data.&nbsp;<a href=\"https:\/\/www.tradefinanceglobal.com\/tradetech\/application-programming-interfaces-api\/\">Application Programming Interface<\/a>&nbsp;(API) and DLT allow firms, networks, technologies, and applications to communicate with one another, sharing data and enhancing the services available to all parties involved.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-analytical-technologies\">Analytical technologies<\/h3>\n\n\n\n<p><\/p>\n\n\n\n<p style=\"font-size:16px\">Analytical technologies are those that take large amounts of collected data and convert those data into actionable insight.&nbsp;<\/p>\n\n\n\n<p style=\"font-size:16px\">Once data are gathered, there is still the issue of making sense of it. Developing practical solutions requires that the people working on them have strong trade industry expertise and data analysis skills. Unfortunately, this skill combination is not always readily available. Furthermore, as a traditional industry, trade finance suffers from a reluctance to adopt new technologies or processes. There is always the likelihood that companies will stick with the old, ineffective ways with which they are comfortable, rather than trying something new and innovative. Education will be a crucial step to develop trust in analytical technology, in order to foster adoption and trickle benefits down to MSMEs.&nbsp;<\/p>\n\n\n\n<p style=\"font-size:16px\">The new technologies in question include&nbsp;<a href=\"https:\/\/www.tradefinanceglobal.com\/tradetech\/big-data-analytics\/\">big data analytics<\/a>,&nbsp;<a href=\"https:\/\/www.tradefinanceglobal.com\/tradetech\/artificial-intelligence-ai\/\">AI<\/a>&nbsp;and&nbsp;<a href=\"https:\/\/www.tradefinanceglobal.com\/tradetech\/quantum-computing\/\">quantum computing<\/a>.&nbsp;<\/p>\n<\/div><\/div>\n\n\n\n<p><\/p>\n<\/div>\n<\/div>\n\n\n<div class=\"modules w-100 partners-sponsor container py-10\">\n  <div class=\"d-grid grid-col-8 grid-col-xs-1 grid-col-sm-4 gap-1 max-w-100 py-50\">\n    <div class=\"col-span-2 col-span-xs-1 col-span-sm-1\">\n      <div class=\"d-grid grid-col-1 grid-col-xs-1 mb-sm-15\">\n        <h4 id=\"heading-publishing-partners\" class=\"not-for-table-content fw-700 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d-hidden\">\n          <span class=\"d-block py-10 px-16 pointer single-option\"\n          data-value=\"title-asc\">A-Z<\/span>\n          <span class=\"d-block py-10 px-16 pointer single-option\" data-value=\"date-desc\">Latest<\/span>\n        <\/div>\n      <\/div>\n    <\/div>\n\n    <div class=\"block-wrapper clearfix overflow-hidden max-w-100\">\n    <\/div>\n\n    <div class=\"bottom-buttons d-flex clearfix container w-auto\">\n      <a href=\"\" class=\"custom-link button-standart button-standart-blue\">\n        <span><\/span>\n      <\/a>\n    <\/div>\n  <\/div>\n<\/section>","protected":false},"excerpt":{"rendered":"<p>The Role of Technology While acknowledging that technology is not a panacea, this article will examine the role that technology plays in the ecosystem, and will introduce some of the\u2026 <a href=\"https:\/\/www.tradefinanceglobal.com\/tradetech\/introduction-to-trade-digitalisation-tradetech\/\" class=\"read-more-link\">read more &rarr;<\/a><\/p>\n","protected":false},"author":57,"featured_media":110551,"parent":44077,"menu_order":3,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"content-type":"","ep_exclude_from_search":false,"footnotes":""},"categories":[2711],"class_list":["post-44228","page","type-page","status-publish","has-post-thumbnail","hentry","category-tradetech"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.7 (Yoast SEO v24.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Role of Technology<\/title>\n<meta name=\"description\" content=\"[UPDATED 2025] Many of the challenges that face micro-, small-, and medium-sized enterprises (MSMEs) in their search for financing are broad in scope and cannot easily be addressed by any single solution. It is easy to say that technology is the answer here, and while innovation will help banks distribute trade finance assets to smaller investors and better understand the risks associated with MSMEs, there is also a greater change needed. At this early stage of the adoption of such technological innovation, there is very little evidence to suggest that it is being utilized by corporates and MSMEs just yet. That said, it is difficult to dispute that technological innovation and the various emerging technologies in the industry are a critical piece in the puzzle of overcoming these challenges.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.tradefinanceglobal.com\/tradetech\/introduction-to-trade-digitalisation-tradetech\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Role of Technology\" \/>\n<meta property=\"og:description\" content=\"[UPDATED 2025] Many of the challenges that face micro-, small-, and medium-sized enterprises (MSMEs) in their search for financing are broad in scope and cannot easily be addressed by any single solution. It is easy to say that technology is the answer here, and while innovation will help banks distribute trade finance assets to smaller investors and better understand the risks associated with MSMEs, there is also a greater change needed. At this early stage of the adoption of such technological innovation, there is very little evidence to suggest that it is being utilized by corporates and MSMEs just yet. That said, it is difficult to dispute that technological innovation and the various emerging technologies in the industry are a critical piece in the puzzle of overcoming these challenges.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.tradefinanceglobal.com\/tradetech\/introduction-to-trade-digitalisation-tradetech\/\" \/>\n<meta property=\"og:site_name\" content=\"Trade Finance Global\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/tradefinanceglobal\" \/>\n<meta property=\"article:modified_time\" content=\"2025-02-26T14:27:36+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/The-Role-of-Technology.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"869\" \/>\n\t<meta property=\"og:image:height\" content=\"352\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@tradefinglobal\" \/>\n<meta name=\"twitter:label1\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.tradefinanceglobal.com\/tradetech\/introduction-to-trade-digitalisation-tradetech\/\",\"url\":\"https:\/\/www.tradefinanceglobal.com\/tradetech\/introduction-to-trade-digitalisation-tradetech\/\",\"name\":\"The Role of Technology\",\"isPartOf\":{\"@id\":\"https:\/\/www.tradefinanceglobal.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.tradefinanceglobal.com\/tradetech\/introduction-to-trade-digitalisation-tradetech\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.tradefinanceglobal.com\/tradetech\/introduction-to-trade-digitalisation-tradetech\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/The-Role-of-Technology.jpg\",\"datePublished\":\"2021-03-19T10:57:18+00:00\",\"dateModified\":\"2025-02-26T14:27:36+00:00\",\"description\":\"[UPDATED 2025] Many of the challenges that face micro-, small-, and medium-sized enterprises (MSMEs) in their search for financing are broad in scope and cannot easily be addressed by any single solution. 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It is easy to say that technology is the answer here, and while innovation will help banks distribute trade finance assets to smaller investors and better understand the risks associated with MSMEs, there is also a greater change needed. At this early stage of the adoption of such technological innovation, there is very little evidence to suggest that it is being utilized by corporates and MSMEs just yet. That said, it is difficult to dispute that technological innovation and the various emerging technologies in the industry are a critical piece in the puzzle of overcoming these challenges.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.tradefinanceglobal.com\/tradetech\/introduction-to-trade-digitalisation-tradetech\/","og_locale":"en_GB","og_type":"article","og_title":"The Role of Technology","og_description":"[UPDATED 2025] Many of the challenges that face micro-, small-, and medium-sized enterprises (MSMEs) in their search for financing are broad in scope and cannot easily be addressed by any single solution. It is easy to say that technology is the answer here, and while innovation will help banks distribute trade finance assets to smaller investors and better understand the risks associated with MSMEs, there is also a greater change needed. At this early stage of the adoption of such technological innovation, there is very little evidence to suggest that it is being utilized by corporates and MSMEs just yet. 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