A conversation between Ben Arber (CEO, Complidata) and Pamela Mar (Managing Director, ICC Digital Standards Initiative) at Sibos 2024, Beijing
At Sibos 2024 in Beijing, against the backdrop of accelerating global trade digitalization, industry leaders gathered to explore the future of trade finance. In a compelling small panel discussion we hosted at our stand, Ben Arber, CEO of Complidata, sat down with Pamela Mar, Managing Director of the Digital Standards Initiative (ICC) to explore the evolving landscape of paperless trade finance.
Their conversation revealed not just the current state of digital transformation in trade, but more importantly, where we're headed and what it means for the industry's future.
The session focused on four key areas:
The tangible benefits of transitioning to paperless trade
Key findings from ICC's latest paper on trade data elements
Progress in legislative and regulatory support
Technological breakthroughs shaping the industry
The Digital Trade Tipping Point
The year 2024 has emerged as a pivotal year for digital trade, with Mar revealing a striking statistic: "37 percent of global GDP is aligned to the MLETR protocol, and 26 percent of global GDP has committed to align." This represents more than just numbers – it signals a fundamental shift in how global trade operates. The momentum extends beyond developed economies into emerging markets, suggesting a genuine global transformation rather than a segmented evolution.
The significance of this shift cannot be understated. For the first time, we're seeing alignment between regulatory frameworks, technological capabilities, and market readiness. This convergence suggests we're approaching a tipping point where digital trade becomes the norm rather than the exception.
This shift has transformed the role of governments beyond that of mere regulators. Mar's insights revealed a more nuanced reality where governments are becoming active facilitators of change.
“We are working with governments and it could be a two to three year process to accomplish the legal reforms. It may seem simple, the MLETR itself is not long, but implementation is not easy, it takes time, coordination, and a certain amount of political will.” she emphasised. “But I feel the infrastructure is moving into place and on standards, we've finally developed an alignment framework that reaches across the entire supply chain.”
This shift in government role represents a mature understanding that digital trade transformation requires more than just regulatory permission – it needs active enablement. Governments are increasingly creating environments where innovation can flourish through regulatory sandboxes, fintech support programs, and educational initiatives.
"(...)The infrastructure is moving into place and on standards, we've finally developed an alignment framework that reaches across the entire supply chain."
Breaking Down Data Standardisation
Perhaps the most significant breakthrough discussed was the unprecedented alignment of stakeholders on standards. Mar outlined an ambitious vision to transform supply chain documents into a streamlined data hierarchy, but the real innovation lies in the approach to standardisation itself.
The new standardisation framework represents a rethinking of how trade data should be structured and what should be shared, and what not.
"Some of that data needs to be shared, others not." Mar detailed the development of a dual framework for shareable data: standardisation rules are being created first, followed by the establishment of governance frameworks that address security, digital identity tagging, verification protocols, etc.
The framework would seamlessly integrate with robust cross-border interoperability standards, ensuring that digital trade can flow effortlessly across different jurisdictions and systems.
Perhaps most importantly, the framework acknowledges the reality of existing systems, providing clear integration pathways that allow organisations to transition at their own pace without disrupting ongoing operations.
This holistic approach to standardisation marks a significant departure from previous attempts, which often focused too narrowly on technical specifications while ignoring the broader ecosystem requirements.
The Hidden Dynamics of Business Adoption
The conversation took an intriguing turn when Mar revealed an often-overlooked aspect of digital trade resistance: "There are businesses which benefit from a lack of transparency."
This insight opens up a complex discussion about the real barriers to adoption, which go beyond technical challenges to touch on fundamental business models and competitive advantages.
The resistance to change isn't always about capability or resources – sometimes it could be about advantages created by uneven approaches to transparency. This reality suggests that the path to widespread adoption might require more nuanced approaches that address both technical and strategic concerns.
While technological capabilities have made remarkable strides – with Arber highlighting "98% extraction accuracy in document processing" – the panel emphasised that technology alone isn't the answer. The future lies in how we integrate these capabilities into broader business processes and ecosystems.
The Road Ahead
Looking toward 2025 and beyond, several critical factors will shape the evolution of digital trade:
Immediate Priorities (2024-2025)
Harmonisation of regulatory frameworks across major trading nations
Establishment of standardised data sharing protocols
Development of industry-wide security standards
Long-term Considerations (2025-2030)
Evolution of business models to embrace transparency
Integration of emerging technologies like AI and blockchain
Development of inclusive systems that work for businesses of all sizes
The future of digital trade is not just about digitising existing processes – it's about reimagining how global trade operates in a digital-first world. As Mar concluded, success will come not from technology alone, but from our ability to orchestrate change across multiple stakeholders while maintaining the delicate balance between standardisation and flexibility.
The conversation at Sibos 2024 made it clear that we're not just witnessing an evolution in trade finance – we're participating in a fundamental transformation of global commerce. The question is no longer whether digital trade will become the norm, but how quickly and inclusively we can make that transition.
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