Asia Trade: The heart of world trade responds to change

7. The ADB recently reported that the trade finance gap has grown to US$1.7trillion. 1 How would you describe the trade finance landscape in Asia? Kanika: Currently, there is not necessarily a shortage of liquidity in the system. The problem is that most credit is allocated to larger corporates with the size and experience to weather any periods of uncertainty or instability. For large banks, data and digitisation are invaluable in helping to address the gap. Digital processes enable us to offer financing in areas that we would not otherwise be able to access physically. Meanwhile, having access to data on company history, previous performance and industry comparisons and trends renders the process much easier. 8. On the topic of digitisation, how is Citi’s evolving trade offering supporting clients in Asia? Is the region a leader with respect to digital uptake and embracing innovation? Megha: Citi operates in 95 countries, providing the world’s global platform for trade and working capital, helping our clients do better, more sustainable business, minimise friction and support their supply chains. Our online platform CitiDirect TM was named the online banking portal of the year in 2021 in the Coalition Greenwich Global Digital Bank Survey . With the enormous volumes in Asia, it is an efficiency drive on time, cost and provides the much-needed visibility and control for our clients. In Asia, we saw more than a 20% increase in digital adoption in 2021 alone, and a 95-100% digital adoption of some of our export documentary products. Kanika: Delivering effective solutions that address the varied needs of our clients is a key part of Citi’s role as a leading trade finance bank. In parallel with investing in our own infrastructure, we believe in the value of innovation through a wide and diverse range of collaborations with external partners. With respect to fintechs specifically, we are working with many companies that can enhance our offering to clients. For instance, Citi is one of the co-founders of Komgo which helps support global digital trade flows. We are a member of Contour, a digital network and consortium that helps to improve trade finance flows. We are very excited with our recent partnership with Stenn to help close the financing gap faced by many international small and medium sized enterprises. 9. Are digital initiatives helping Asia to integrate economically? Is the encouragement of intra-Asia trade a focus? Megha: Over half of trade in Asia (55-60%) is intra-regional. Digitisation has brought about much-needed advancements in terms of transparency of operations and connectivity. An important part of navigating the region is being able to manage multiple regulations, countries and currencies. By providing a service that overcomes these obstacles, we equip clients with the confidence and capabilities to expand into other geographies. We are one of the leading banks in Supply Chain Finance and in these times of uncertainty, the strength of our digital platforms, and strong delivery experience has been one of the most powerful tools for our clients to build resilience. For instance, for one of our clients, we scaled the supply chain financing program to a Billion dollars in 4 countries with over 100 suppliers to tide over the liquidity crisis faced by suppliers. Similarly, on the receivables side, there is some level of diversification. One corporate selling to buyers in multiple countries in Asia requires a financing solution that can help monetise across complex geographies. Our digital receivable financing platform does exactly that and is used by our clients as a sales enablement tool in expanding reach in various Asian markets. Kanika : A lot of our Asian clients are outbound in their business expansion, and having access to a single, easy to use solution helps to make this a much easier process. For businesses expanding westward, or western businesses expanding into Asia, we have the consistency, experience and local knowledge to facilitate this transition. As the world moves towards a more digital, sustainable future, the innovation and uptake of solutions in Asia is playing an increasingly integral role in shaping the evolution of international trade. We are committed to providing our clients with the expertise and support they need to facilitate this transition. For more information, please visit Citi Treasury and Trade Solutions. 1 Source: Asian Development Bank — October 2021 https://www.adb.org/ news/global-trade-finance-gap-widened-17-trillion-2020 “Ensuring our team is composed of a highly talented, diverse mix of backgrounds and experience is paramount to being at the cutting- edge of market innovation and being attuned with the varied, specialised needs of our clients throughout Asia.”