TTP Liquidity Brief | Issue 68 - Catch you from Panglao

This week: Indonesia's trade and finance gap, can complex lending be fully automated, Swift's first live tokenised deposit transaction, EBRD in Kyrgyzstan, and factoring in India

🌟 A note from the Deputy Editor

Indonesia took centre stage for us this past week, with ICC Indonesia convening its digital trade rendezvous on Thursday. TTP was pleased to be involved as a media partner.

To coincide with the event, we published an op-ed on the state of the archipelago’s trade and financing infrastructure. Indonesia has the trade, but can finance keep up? With historically strong trade flows and an increasingly important place within regional and global commerce, there is plenty of opportunity. Making sure businesses have the financial infrastructure to seize it is another matter.

Away from Indonesia, our slow read asks whether complex lending can ever be fully automated. AI and automation can already take on more and more of the lending process, but when decisions get complicated, there is a delicate line to draw between where technology should stop and human judgement should begin.

Elsewhere, we’ve been following the latest developments in digital money and payments, including the first live cross-border tokenised deposit transaction on Swift’s blockchain ledger.

From the studio, we head to Kyrgyzstan to explore how the EBRD’s Trade Facilitation Programme is helping support investment in emerging markets, before turning to India and the potential for factoring to play a much bigger role in financing businesses.

The week ahead is also an exciting one for the TTP team as we head to the Philippines for a company-wide strategy offsite. 

As always, there’s plenty to read, watch, and learn.

Until next time — catch you from Panglao!

— The TTP Editorial Team

Country of the Week: Indonesia

Did you know that Indonesia is made up of more than 17,000 islands? Straddling major sea routes between the Indian and Pacific Oceans, the archipelago has been a crossroads of international commerce for centuries. Its position still places Indonesia alongside some of the most important shipping lanes in global trade.

Indonesia trade stats (2024):

Total exports: $297B

Total Imports: $231B

Largest export destination: China ($66B)

Largest import partner: China ($74B)

Largest Export: Coal, Briquettes and Similar Manufactured Solid Fuels ($34.4B)

Largest Import: Refined Petroleum ($21.3B)

Source: OEC

Slow Read

Can complex lending ever be fully automated?

By: Kendall Stevens

Ask borrowers what they would like from a lender, and most will tell you they want a clear decision, delivered quickly.

In standardised consumer credit, technology has largely met that expectation, with decision engines now able to assess products such as credit cards, personal loans, or buy now pay later (BNPL) arrangements within seconds. They can do so because the criteria are clearly defined and individual exposures are relatively small. The questions a lender needs to answer are broadly consistent from one application to the next, so a rules-based engine, particularly when applied across a large population of similar borrowers, can be quite effective.

Trade digest

Treasury, payment and global banking digest

Topic of the week: Correspondent banking

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ICC Advancing digital trade in Indonesia

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