FIS Study: Banks Increasing Trade Finance Tech Investment
According to the latest FIS Supply Chain Finance Benchmark Report for 2025, global banks are ramping up their investment in trade finance technology, with 55% planning to increase spending on trade finance platforms over the next 12 months.
The research, which surveyed 200 global banks, examines the changing landscape of supply chain finance and highlights how institutions are striving to enhance operational efficiency and customer experience. This marks the fourth annual study into trade finance trends by FIS Supply Chain Finance (formerly Demica).
Banks Embrace Technology to Meet Client Demands
Financial institutions across the sector recognise technology upgrades as crucial to meeting evolving client expectations.
- 28% of respondents prioritise operational efficiency
- Another 28% focus on improving customer experience
- 15% emphasise enhancing product functionality
These priorities demonstrate how banks are increasingly turning to digital platforms to address longstanding infrastructure challenges.
Notably, 18% of banks report they still rely on trade finance technology platforms that are more than ten years old.
As customer expectations evolve and global trade becomes more complex, these legacy systems are struggling to meet operational requirements.
The report indicates a clear shift towards modern, agile platforms capable of supporting greater efficiency and flexibility.
"From this research, it's clear that inflexible and inefficient systems are no longer meeting clients' needs," explains Matt Wreford, CEO at FIS Supply Chain Finance.
"With geopolitical risk and interest rates having significant impacts on the market, alongside cost efficiency and security concerns influencing decision-making, investment in trade finance technology is now more crucial than ever to help banks transform the customer experience and drive growth."
Varied Approaches to Technology Development
Banks are taking different approaches to upgrading their systems. While slightly more than half (52%) are pursuing in-house development, 48% are partnering with external technology providers.
This balance reflects how banks are carefully weighing the benefits of custom solutions against the speed and reliability of proven third-party platforms.
A trend towards consolidation is also emerging, with almost one in five banks (19%) having moved their trade finance transactions onto a single third-party platform.
This shift highlights a desire for integration and streamlining, with many banks now favouring ecosystems that offer comprehensive functionality in a single system.
The use of technology in live transactions continues to grow. AI and machine learning, in particular, have seen a significant increase in adoption.
In 2024, 32% of respondents reported using AI in live client trade finance transactions—a figure that has now risen to 45%, representing a 50% increase in just one year. This growth underscores the increasing role of data-driven technology in real-time decision-making and credit risk assessment.
Payables Finance Overtakes Receivables
The report finds that 80% of banks expect to grow their trade finance asset books in the next 12 months.
Among the range of products offered, payables finance has now emerged as the fastest-growing area, surpassing receivables discounting. This shift reflects changing corporate preferences, as companies adjust their working capital strategies and seek greater flexibility in funding supplier payments.
FIS Supply Chain Finance offers a platform designed to support these developments, providing tools to help banks streamline operations and improve capital deployment across global supply chains.
Steve Sabin, Senior Vice President of Lending at FIS, emphasises that technology partnerships are essential for progress: "Businesses need a technology partner that can help them grow and meet the increasing demand for supply chain finances," he concludes.
"At FIS, we help to streamline the flow of money at work. Bringing Demica's solutions under the FIS Supply Chain Finance ecosystem provides us with leading technology which can help unlock growth."
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