ADB survey shows technology adoption accelerating as trade finance demand surges

“Trade has been one of the most powerful engines of economic development,” said Isabel Chatterton, ADB Director General for Private Sector Operations.

Global demand for trade finance is set to climb sharply as companies diversify export markets, rewire supply chains, and deepen intra-regional trade—pushing banks to accelerate the adoption of artificial intelligence, digital trade platforms, and innovative supply-chain finance models.

According to the latest Global Trade Finance Gap Survey released by the Asian Development Bank (ADB), 80% of banks worldwide expect trade finance demand to rise, even as the global trade finance gap remains stuck at $2.5 trillion in 2025, equivalent to 10% of total global trade.

While the share of unmet demand has edged down slightly from 10.6% in 2023, the persistent shortfall continues to choke growth—particularly for small and medium-sized enterprises (SMEs) and firms operating in emerging markets.

“Trade has been one of the most powerful engines of economic development,” said Isabel Chatterton, ADB Director General for Private Sector Operations. “But without adequate trade finance, innovation stalls, supply chains fracture, and growth opportunities are lost. Closing this gap is essential to unlocking the next wave of global, tech-enabled trade.”

AI Becomes Core Infrastructure for Trade Finance

For technology leaders and fintech innovators, the survey highlights a clear inflection point: AI is no longer experimental—it is becoming foundational.

• 84% of banks now use artificial intelligence for fraud prevention and risk assessment

• 57% are actively exploring AI-driven tools to expand financing capacity and improve credit decision-making

• Automation and data analytics are reshaping how trade risk is priced, monitored, and approved

The shift signals growing demand for AI-powered compliance, document digitization, predictive risk models, and interoperable trade platforms—areas ripe for early-stage adoption and cross-sector collaboration.

SMEs See Early Gains—but the Gap Remains

Encouragingly, the report shows tentative progress for SME access to trade finance. For the first time, SME rejection rates (41%) are approaching parity with those of large and mid-cap corporates (40%). More than 80% of banks now report having dedicated SME strategies, though ADB cautions that further data and innovation are needed to sustain the trend.

The survey also underscores the rising importance of supply-chain finance, which channels liquidity to lower-tier suppliers and smaller firms—often through digital platforms that reduce documentation and transaction costs.

ESG Momentum Slows as Capital Retreats

Despite nearly 90% of banks incorporating environmental, social, and governance (ESG) criteria into trade finance decisions, capital outflows from ESG-focused funds have limited the availability of dedicated sustainability financing pools—placing greater emphasis on blended finance and technology-enabled risk sharing.

Digital Trade by 2030: A Call for Early Movers

ADB identifies full digitalization of trade processes by 2030 as a critical milestone for closing the trade finance gap. This includes electronic documentation, interoperable trade systems, and scalable digital identity and compliance frameworks.

Backed by its AAA credit rating, ADB supported $5.7 billion in trade in 2025 through guarantees and loans delivered via nearly 300 partner banks, positioning the institution as a key enabler of tech-driven trade transformation across Asia and the Pacific.

For fintechs, AI startups, trade-tech platforms, and banks willing to move early, the message is clear: the next phase of global trade will be digital, data-driven, and innovation-led. Those who build and adopt scalable solutions now stand to shape the future infrastructure of global commerce.