Supply-chain finance: A case of convergent evolution?
Significant value in the global supply chain finance (SCF) market remains untapped. Nearly 80 percent of eligible assets do not benefit from better working-capital financing, and the remaining one-fifth of assets are often inefficiently financed. Despite improvements made in recent years, advances have been largely incremental.
We now see change accelerating in the market in response to a convergence of factors: an increased focus on working capital, structural changes in financing for small and medium-sized enterprises (SMEs), a step change in digital adoption, and the potential geographic relocation of $2.9 trillion to $4.6 trillion in spending on cross-border supply chains (for 16 to 26 percent of global goods exports) over the next five years. Could these events spur the long-anticipated transformation of the landscape?
