North America Trade Finance Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

North America Trade Finance Market is segmented by product ( Letters of Credit, Receivable and Invoice Finance, Export Finance, Guarantees, and others), by service provider (Banks, Trade Finance Companies, Insurance Companies, and other service providers), by application (Domestic and International), by end-user (Exporters, Importers, Traders, and others), and by country (US, Canada, Mexico, and Rest of North America). The report offers market size and values in (USD billion) during the forecast years for the above segments.

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North America Trade Finance Market Size

North America Trade Finance Market Summary
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Study Period 2018-2028
Base Year For Estimation 2022
Forecast Data Period 2023 - 2028
Historical Data Period 2018 - 2021
CAGR > 7.50 %
Market Concentration Medium

Major Players

North America Trade Finance Market Major Players

*Disclaimer: Major Players sorted in no particular order
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North America Trade Finance Market Analysis

The North America Trade Finance Market is expected to register a CAGR of greater than 7.5% over the forecasted period.

The financial tools and goods used by businesses to support international trade and commerce are referred to as trade finance. Trade finance makes it possible and easier for importers and exporters to conduct business through trade. Trade finance offers a variety of financial products by banks and other financial institutes to businesses and facilitates trade transactions. Lending, factoring, forfeiting, giving letters of credit, and export credit and financing are a few examples of trade finance. According to the World Trade Organization, trade finance facilitates and supports up to 90% of international trade.

North America holds more than one-fourth of the global trade finance market, with high-end technology playing a bigger role in trade financing. Blockchain technology in trade finance businesses is offering attractive business opportunities in the region. The region's trade finance sector is expanding as a result of the rising use of technology, an increase in SMEs embracing trade financing, increased competition, and new trade agreements. The use of digital technology by multinational firms in the US promises improved trade finance. The market is fueled by the rising total value of international trade imports and exports.

The COVID-19 pandemic affected all aspects of human life, including the economy. Investments, transactions, and other financial services got a surprising shock as the effects of the pandemic. North America countries took stringent measures to combat the viral infection and limited its human-to-human spread, including the closure of numerous commercial and industrial operations. The availability of funding during the COVID-19 pandemic, when formal lending institutions were reluctant to lend, came at a high cost, discouraging enterprises, particularly SMEs, from borrowing. Pandemic increased macroeconomic uncertainty and banks' increased fear of default, risk, a higher percentage of SME application rejections, 40%, was experienced. Faster vaccine distribution helped the North America regions economy recover from 2021. As time goes by, the pandemic started to renormalize turning into a new normal. COVID-19's impact on trade finance can also be defined as a 'positive discontinuity' for the purpose of digitization of the sector and the ability to offer an excellent customer experience. With the economy on track to bounce back from the worst of the pandemic. Post COVID-19 the trade finance providers pushed to move their trade finance transactions which were essentially paper-based to digital platform.

North America Trade Finance Market Trends

Technology Implementation in Trade Finance Platforms Makes Way for Startups

Many industries rely on technology, including banking, financial services, and insurance. The pandemic increased digitalization and showed the nature of trade. Digitalization cuts costs, improves efficiencies, and transparency facilitates the coordination of global value chains and globally connects many firms and consumers. In recent years, technological breakthroughs, automation, and a degree of standardization have all been developed in trade financing. The demand for AI and automation in banking is being driven by advancements in data collection technology. Fintech Saphyre received USD 18.7 million from BNP Paribas and JP Morgan in 2022. Modern technology is becoming increasingly important in trade financing in North America. The use of blockchain technology in trade finance is expected to generate lucrative business opportunities over the forecasted period. The overall international trade imports and exports are increasing, which is fueling the growth of the trade finance market.

North America Trade Finance Market: Revenues from the Artificial Intelligence Market in North America, 2019 to 2022

United States Dominates the Market in the North American Region

The United States is the world's second-largest exporter of goods and services exports in 2021, according to the U.S. Census Bureau. However, less than one percent of America's 32 million companies export. And SMEs, which account for 98 percent of American exporters, export to more than one market. SMEs are expanding their sales, diversifying their portfolios, and protecting themselves against periods of slower growth in the domestic economy. Modern technology is becoming increasingly crucial to trade financing in the United States. Adopting blockchain technology in trade finance is anticipated to create lucrative business prospects during the anticipated time period. The demand for safety and security in trading activities is fueling the expansion of the trade finance industry in the United States, along with a surge in SMEs' use of trade financing, more intense competition, and new trade agreements.

North America Trade Finance Market: SMEs Prioritizing E-Commerce and Digital Services in the United States, by Industry, in 2022

North America Trade Finance Industry Overview

The report provides a general overview of the trade financing market's competition as well as a quick recap of recent merger and acquisition transactions. It includes corporate profiles of a few trade finance and trade technology companies, as well as banks. Some top companies now dominating the market include Santandar, Commerzbank, Citi group Inc., Standard Chartered Bank, and Scotia Bank, among others.

North America Trade Finance Market Leaders

  1. Citi group Inc.

  2. Commerzbank

  3. Santander Bank

  4. Scotiabank

  5. Standard Chartered Bank

*Disclaimer: Major Players sorted in no particular order

North America Trade Finance Market Concentration

North America Trade Finance Market News

  • December 2022: Komgo acquired U.S.-based GlobalTrade Corporation. The two companies provide trade finance digitization solutions to over 120 multinational clients, helping them connect to sources of financing.
  • November 2021: Ripple announced the launch of Ripple Liquidity Hub for US banks and fintech firms, which allows users to invest in and trade cryptocurrencies.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS AND INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitutes

      5. 4.4.5 Intensity of Competitive Rivalry

    5. 4.5 Insights on Impact of Technology and Innovation in Trade Finance Market

    6. 4.6 Impact of COVID-19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Product

      1. 5.1.1 Letters of Credit

      2. 5.1.2 Receivable and Invoice Finance

      3. 5.1.3 Export Finance

      4. 5.1.4 Guarantees

      5. 5.1.5 Others

    2. 5.2 By Service Provider

      1. 5.2.1 Banks

      2. 5.2.2 Trade Finance Companies

      3. 5.2.3 Insurance Companies

      4. 5.2.4 Other Service Providers

    3. 5.3 By Application

      1. 5.3.1 Domestic

      2. 5.3.2 International

    4. 5.4 By End User

      1. 5.4.1 Exporters

      2. 5.4.2 Importers

      3. 5.4.3 Traders

    5. 5.5 By Country

      1. 5.5.1 US

      2. 5.5.2 Canada

      3. 5.5.3 Mexico

      4. 5.5.4 Rest of North America

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concentration & Overview

    2. 6.2 Company Profiles

      1. 6.2.1 Bank of America Corporation

      2. 6.2.2 BNP Paribas S.A

      3. 6.2.3 Citi group Inc.

      4. 6.2.4 Commerzbank

      5. 6.2.5 HSBC

      6. 6.2.6 JPMorgan Chase & Co

      7. 6.2.7 Mitsubishi UFJ Financial Inc.

      8. 6.2.8 Santander Bank

      9. 6.2.9 Scotiabank

      10. 6.2.10 Standard Chartered Bank

    3. *List Not Exhaustive

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. DISCLAIMER AND ABOUT US

North America Trade Finance Industry Segmentation

Trade finance refers to the financial instruments and goods used by businesses to support international trade and commerce. Commerce financing makes it easier for importers and exporters to conduct trade-related business. North America Trade Finance Market is segmented by product ( Letters of Credit, Receivable and Invoice Finance, Export Finance, Guarantees, and others), by service provider (Banks, Trade Finance Companies, Insurance Companies, and Other Service Providers), By Application (Domestic and International), by end-user (Exporters, Importers, Traders, and Others), and by country (US, Canada, Mexico, and rest of North America). The report offers market size and values in (USD billion) during the forecast years for the above segments.

By Product
Letters of Credit
Receivable and Invoice Finance
Export Finance
Guarantees
Others
By Service Provider
Banks
Trade Finance Companies
Insurance Companies
Other Service Providers
By Application
Domestic
International
By End User
Exporters
Importers
Traders
By Country
US
Canada
Mexico
Rest of North America

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Frequently Asked Questions

The North America Trade Finance Market is projected to register a CAGR of greater than 7.5% during the forecast period (2023-2028).

Citi group Inc., Commerzbank, Santander Bank, Scotiabank and Standard Chartered Bank are the major companies operating in the North America Trade Finance Market.

North America Trade Finance Industry Report

Statistics for the 2023 North America Trade Finance market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. North America Trade Finance analysis includes a market forecast outlook to for 2023 to (2023to2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.

North America Trade Finance Report Snapshots

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