Digitalisation is transforming the trade finance industry, but it is doing so slowly according to Pedram Tadayon, the CEO of Mitigram, which offers letters of credit (L/Cs) alongside its platform for corporates and banks to manage trade finance.

In an interview with IBS Intelligence, Tadayon also foresees a scenario where a CFO can get an overview on all their accounts receivable, inventory finance and trade engagements in one go, allowing them to optimise their working capital.

Tadayon's conclusions

"We sit on the largest marketplace globally for L/Cs for exporters", says Tadayon. "They can post a deal, and they can ask for pricing and quotation from the 300 banks that are involved there."

"Imagine a scenario where a corporate can post a deal, is connected through API to the bank, the bank can run it through its decision engine and automatically respond... this can definitely happen in an API instead of somebody manually needing to deal with that," he concludes.

Advancing digital L/Cs

Mitigram claims to have significantly advanced the digitalisation of L/Cs through several key initiatives. The firm employs advanced AI and optical character recognition in its AI-powered data processing technologies to transform unstructured data from various client documents into structured, digitised records.

The MitiGateway platform facilitates seamless integration between clients' enterprise resource planning systems and Mitigram's network, enabling clients to manage L/Cs and other instruments digitally, thereby enhancing operational efficiency and reducing reliance on traditional paper-based processes. ​

Strategic partnerships

Mitigram's collaboration with Enigio meanwhile is an example of its commitment to advancing digital trade finance.

This partnership aims to offer legally compliant electronic trade documents that facilitate fully digital end-to-end trade flows. Such collaborations enhance the digital infrastructure supporting L/Cs, making transactions faster and more secure. ​

Pedram Tadayon's interview with IBS Intelligence can be found here.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.