Via Trade Finance Global by Doga Usanmaz
- Geopolitical tensions and shifting trade corridors are requiring banks to adapt to political risks and regional economic changes.
- Europe’s focus on financial sovereignty is driving strategic investment into sectors like energy and defense.
- Regarding digitalisation, challenges remain in balancing technological innovation with social impacts, particularly in developing regions
Rerouted trade corridors, regional fragmentation, a currency arms race… these are no longer distant possibilities. They are active geopolitical and macroeconomic forces, reshaping transactional banking.
At this year’s BAFT Global Council’s Forum in Frankfurt, Germany, a panel of senior leaders from prominent global and regional banks explored how shifting political tensions and economic dynamics are creating deep uncertainty for the industry, and how banks are adapting their strategies, infrastructure, and client relations in response.
The panel, moderated by Nick Smit, head of financial institutions at ING Bank and chair of BAFT’s board, found that transactional banks are being rewired to confront political risk, digitisation, and technological disruption. The panel provided a region-by-region exploration of the subject, and some interesting parallels came up.