Blockchain technology contributes big in Trade Finance, boosting the economic growth

Bringing the facts into perspective of the international trade, humongous $1.5 trillion trade finance gap has persisted despite many breakthroughs. this is mainly because of declining conducive trust among the parties involved in trade. Micro, macro and MSME's are facing the major chunk of rejection from the banks for financing their trade. As large as 74% of total rejections are from MSME's, this represent the fact of the situation in the last fiscal year. This has translated into low job creation and lack of opportunities effecting the economic growth of the country. 1_SYZyFYay6lxbxKC8sKyoYw Surrounding this environment, blockchain technology envisions the gap created because of mistrust among parties. Many fintech companies are on the verge of finding the solution for the enormous gap being created, but very few are getting credited. The blockchain technology is helping the cost of delivering finances to the traders and MSME's and finding to bridge the gaps created. With expanding global reach and high demand for goods across regions the need for international trade is also increasing leaps and bounds. so, there is very need in this current state to increase the trust among financial institutions on the Trade parties and support them for their working capital solutions. Findings reveal that financial institutions are reluctant to provide trade finance to small businesses is rooted in the cost and complexity of anti-financial crimes, due diligence and the perception of low returns on financial support from smaller firms. With the advent of new revolution in technologies, Blockchain is helping exporters and importers towards dizitization and increase the capital liquidity for trade. The decreased trade cycle time with the help of blockchain is helping traders increase their scope of work and create more employment for the skilled. Understanding the persisting needs and requirement, Simplyfi has created a marketplace for all the stakeholders of the international trade to reduce the complexities like trust, working capital liquidity, fraud and increasing trade cycle. with the increase in awareness for the blockchain technology among banks and financial institutions, the role of fintech companies is by large a significant role in connecting the players and help transactions flourish smoothly. simplyfi is thereby playing a vital catalyst in increasing the revenues and indirectly helping the country to take the GDP and economic growth a step ahead.

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