Our vision is to help banks, fintech industry and alternate providers of trade financing to partner with institutional investors regarding their trade finance asset sales.
This is a paradigm shift in the traditional ways of selling trade finance assets (i.e. banks among themselves), by challenging the status quo, and finding new ideas and structures for transferring trade assets from banks to institutional investors that meets the requirements of both parties.
Institutional investors want to invest in trade finance assets via structures that have the ability to scale-up in size and volumes, providing a diversified pool of obligors while meeting their pricing expectations as well.
Once the overall structure is right, then they should focus on introducing technology platforms to automate the execution of asset-sales on an end-to-end basis. This can also be combined with robotics and artificial intelligence for identifying investment opportunities, optimising trade asset portfolio and balancing risk/rewards.
Market makers can play a critical role, by providing secondary market liquidity for trade finance assets. This in-turn will attract more institutional investors to buy trade finance assets as an alternative investment category, thereby, leading to transparency, diversity and higher volumes (and hopefully lower pricing of trade finance assets in the longer run).
Pinnacle Trade Finance Limited has been incorporated with the same vision in-mind and it will be its constant endeavour to help our clients achieve this goal.