UAE's Haifin Sets Sights for AI-Powered Trade Finance Fraud Detection
UAE-based financial technology company UAE Trade Connect unveiled a rebrand this week as Haifin, announcing plans to expand its blockchain-powered invoice-checking platform beyond the UAE. Haifin's tool is designed to address the persistent issue of duplicate financing fraud in trade finance.
“By comparing invoice data submitted from multiple banks, Haifin's artificial intelligence system flags potential duplicate financing requests. Since the platform was introduced in the UAE in 2021, over AED 200 billion ($54 billion) in transactions have been screened,” said Haifin CEO Zul Javaid. He noted banks have been surprised by the high rate of duplicates detected.
"Our banks believe this is a blind spot they could not fix alone," Javaid said. "They need multiple banks and a trusted third party with cybersecurity and no vested interest."
Read More: https://www.emeriobanque.com/news/uae-s-haifin-sets-sights-for-ai-powered-trade-finance-fraud-detection
Emerging economies struggle to service debts as growth stalls and rates rise
The World Bank has issued a stark warning that developing countries face mounting challenges paying back loans as borrowing costs surge and economic expansion slows across the globe.
In its starkest caution yet on emerging market debt sustainability, the multilateral lender stressed the urgent need to accelerate growth to service debts in a higher interest rate environment.
“When it comes to borrowing, the story has changed dramatically. You need to grow much faster,” said Ayhan Kose, deputy chief economist at the World Bank. “If I had a mortgage with a 10% interest rate, I would be worried,” he added.
Read More: https://www.emeriobanque.com/news/emerging-economies-struggle-to-service-debts-as-growth-stalls-and-rates-rise
Blockchain's Impact on Trade Finance: Shaping Global Commerce
Trade financing facilitates global commerce but involves antiquated systems reliant on manual paperwork, limited transparency between parties, and financing constrained to assets already held by major institutions. Blockchain delivers a Trade Finance Automation opportunity to transform trade finance through cryptographic trust mechanisms, transparent documentation via distributed ledgers, tokenization of assets into tradable crypto instruments, automation by smart contracts, and decentralized financing capacity.
The result is needless friction through every cross-border transaction - limited transparency leads to delays in validating documentation or assets, financing remains restricted to major players, and settlement limps along a web of intermediaries. These inefficiencies impose billions in costs through delayed transactions, financing fees, and revenue losses.
Read More: https://www.emeriobanque.com/blogs/blockchain%27s-impact-on-trade-finance-shaping-global-commerce
India's Trade Dynamics Amidst the Red Sea Crisis
As of now, there has been no significant impact on India's exports and imports owing to the crisis in the Red Sea, as per an official statement. Although shipping costs have risen due to ships taking longer alternate routes.
"The volume of trade remains unaffected so far. Only transportation expenses have increased, impacting all nations reliant on the route. We must assess long-term demand, which depends on exports to the EU and US,” the official commented.
These two regions account for over 30% of India's exports.
However, exporters have expressed concerns that the sharp rise in freight costs may eventually impact India's exports. Supply chains throughout the world have been thrown off balance by the Houthi rebels' attacks on commercial ships in the Red Sea, the busiest maritime route in the world. The rebels are located in Yemen. Due to forced rerouting, ships have had to travel lengthier routes, which has raised freight charges, necessitated war insurance premiums, and majorly delayed shipments.
Read More: https://www.emeriobanque.com/blogs/india%27s-trade-dynamics-amidst-the-red-sea-crisis
Sri Lanka Signs Free Trade Agreement With Thailand To Boost Economic Ties
In the endeavor to augment bilateral trade, Sri Lanka has formally entered into a trade agreement with Thailand. The pact, termed the Sri Lanka-Thailand Free Trade Agreement, spans various sectors including trade in goods, investment, customs procedures, and intellectual property rights. The signing ceremony, held in Colombo, saw the attendance of Sri Lankan President Ranil Wickremesinghe and Thai Prime Minister Srettha Thavisin.
The two countries began FTA negotiations in 2016. Thailand's exports to Sri Lanka totaled $292 million in 2022, while Sri Lankan exports to Thailand amounted to $58 million. Sri Lanka mainly exports precious stones, apparel, tea, and spices. Key imports from Thailand include rubber, plastic, and cement. The agreement is expected to push two-way trade to $1.5 billion, as per official estimates. Thavisin said both sides also agreed to encourage investments in sectors like fisheries, food processing, tourism, and renewable energy.
Read More: https://www.emeriobanque.com/news/thailand-and-sri-lanka-ink-free-trade-agreement-to-boost-trade-investment
