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The global headlines are all filled with international trade all over. Every other day, there are discussions of a trade war, increased tariffs, and the health of the global trade order. What most of these conversations seldom cover is how innovative technology is becoming an indispensable part of international trade. Technology has made all the processes more inclusive and efficient. Moreover, even in past, there have been plenty of technical advancements which led to many great things happening to the global trade system. In addition, the global trade system has failed to take full advantage of cutting-edge technologies that could make trade more efficient, more inclusive, and less costly, such as trade agreements that were written before digital commerce, transactions that require a lot of paperwork, and trade financing that still rely on traditional banking methods.
Let us look at the major technology trends as per financial services in Toronto that are bound to disrupt global trade.
Blockchain
The global trade supply chain can be greatly impacted by blockchain and blockchain-based distributed ledger technologies. Even some major trade organizations globally are now taking various initiatives to leverage blockchain technology which can address global trade issues like high costs and the absence of proper transparency and security. Blockchain-based solutions are not only making goods movements more reliable and efficient, but they are disrupting trade financing as well.
Artificial Intelligence and Machine Learning
With Artificial Intelligence and Machine Learning, trade shipping routes can be optimized, vessel and truck traffic at ports can be managed, and e-commerce search queries can be translated into other languages, responding with a translated inventory. Trading and financial service use AI for sustainable global trade that goes beyond efficiencies and better consumer services.
Trading Via Digital Platforms
Technology has made it easy for people to connect with almost anyone sitting anywhere in the world. It has never been easier to trade services online. Many digital platforms make it seamless for users to connect with trading and financial service providers from anywhere in the world who possess the skills users are looking for. Service-based industries can benefit the most from this technology.
Easy Mobile Payments
The advents of covid brought along challenges unheard of before. one of those challenges was to pay without coming in contact with anyone. Self-checkouts were an option, but not every store can allow self-checkouts, nor people are inept in checking themselves out without assistance. This gave rise to mobile payments. From apple pay to M-Pesa, every mobile payment app helps in connecting people to market opportunities. The World Bank Global Inclusion Database shows that the number of people who gained access to banks has increased since accounts increased by 20% between 2011 and 2014, and mobile money accounts were a major driver of financial inclusion, particularly in emerging markets.
Final Thoughts
You cannot escape technology as it is capturing every market globally. So, becoming inept in technology is the need of the hour to stay ahead of your peers. Despite today's uncertainties, technological innovations could offer an exciting future for international trade. With the right governing approach, these innovations could lead to more inclusive and efficient growth. That is why at ITG, we take pride in combining the art of trading with eh science of technology to come up with the best possibilities for you. Want to know more? Reach out to us today!
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