North America Trade Finance Market - Growth, Trends, COVID-19 Impact, and Forecasts (2024-2029)

North America Trade Finance Market Analysis

The North America Trade Finance Market is expected to register a CAGR of greater than 7.5% during the forecast period.

The financial tools and goods used by businesses to support international trade and commerce are referred to as trade finance. Trade finance makes it possible and easier for importers and exporters to conduct business through trade. Trade finance offers a variety of financial products by banks and other financial institutes to businesses and facilitates trade transactions. Lending, factoring, forfeiting, giving letters of credit, and export credit and financing are a few examples of trade finance. According to the World Trade Organization, trade finance facilitates and supports up to 90% of international trade.

North America holds more than one-fourth of the global trade finance market, with high-end technology playing a bigger role in trade financing. Blockchain technology in trade finance businesses is offering attractive business opportunities in the region. The region's trade finance sector is expanding as a result of the rising use of technology, an increase in SMEs embracing trade financing, increased competition, and new trade agreements. The use of digital technology by multinational firms in the US promises improved trade finance. The market is fueled by the rising total value of international trade imports and exports.

The COVID-19 pandemic affected all aspects of human life, including the economy. Investments, transactions, and other financial services got a surprising shock as the effects of the pandemic. North America countries took stringent measures to combat the viral infection and limited its human-to-human spread, including the closure of numerous commercial and industrial operations. The availability of funding during the COVID-19 pandemic, when formal lending institutions were reluctant to lend, came at a high cost, discouraging enterprises, particularly SMEs, from borrowing. Pandemic increased macroeconomic uncertainty and banks' increased fear of default, risk, a higher percentage of SME application rejections, 40%, was experienced. Faster vaccine distribution helped the North America regions economy recover from 2021. As time goes by, the pandemic started to renormalize turning into a new normal. COVID-19's impact on trade finance can also be defined as a 'positive discontinuity' for the purpose of digitization of the sector and the ability to offer an excellent customer experience. With the economy on track to bounce back from the worst of the pandemic. Post COVID-19 the trade finance providers pushed to move their trade finance transactions which were essentially paper-based to digital platform.

North America Trade Finance Market Trends

Technology Implementation in Trade Finance Platforms Makes Way for Startups

North America Trade Finance Industry Segmentation

Trade finance refers to the financial instruments and goods used by businesses to support international trade and commerce. Commerce financing makes it easier for importers and exporters to conduct trade-related business. North America trade finance market is segmented by product (documentary (performance bank guarantee, letters of credit, and others), non-documentary), by the service provider (banks, trade finance companies, insurance companies, and other service providers), by application (domestic and international), and by country (USA, Canada). The report offers market size and forecasts for the North America trade finance market in values (USD) for the above segments.