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Bridging the Trade Finance Gap with vabble

Kayla Dreuth avatar

Kayla Dreuth

Published on

Bridging the Trade Finance Gap with vabble

In today's interconnected global economy, Small and Medium Enterprises (SMEs) in emerging markets face a significant hurdle: inadequate access to financing for their trade exports.

Everyday products are shipped and flown around the world. The trading industry relies on their international connections because no country can thrive in isolation. According to QED Investors, the global trade industry soared to a record of $32 trillion in 2022 and is only projected to keep growing.

Yet, within this surging market, there’s still a trade finance gap that traditional financial institutions are struggling to bridge. This gap has created the perfect space for innovation, where disruptive Fintech companies like vabble can introduce groundbreaking solutions.

Who is vabble?

Founded by Pablo Terpolilli and Derek Hudson, vabble connects institutional investors with the trade finance market, presenting a fresh paradigm in addressing this long standing industry issue. Trade Finance, as an asset class, holds immense potential, offering investors attractive, uncorrelated, and consistent returns. Moreover, it’s working to help achieve the UN's Sustainable Development Goals by 2030, as emphasised in this insightful article.

The digitisation of supply chain documents marks a pivotal advancement, empowering investors with transparency and trust within the trade finance market. This digital transformation has facilitated the addition of trade finance as a new asset class, a key insight explored in detail in the Trade Finance Global article.

One of the most innovative facets of vabble's solution is the integration of machine learning. This technology automates and streamlines the matching process between exporters and investors, optimising the supply-to-demand dynamics. This efficiency not only propels vabble's expansion into new markets but does so without incurring heightened operating costs, marking a significant leap forward in trade finance solutions.

Differentiation in the Market

vabble's unique proposition stands out distinctly from traditional players in the field.

Unlike banking institutions or factoring companies such as BBVA or Marco, vabble doesn't function as a lender to exporters. By advancing cash without mandating credit lines, collateral, country-specific limitations, or imposing monthly interest charges, vabble offers a higher quality product at a competitive fee, elevating the exporter's experience.

Being a Fintech company from Europe, vabble has the agility to pivot swiftly and seize new market opportunities. Once solidified in the Latin American exporter market, vabble plans to offer its platform to banks through accessible APIs, further amplifying its global reach and impact.

The Future of vabble

Looking ahead, vabble envisions a future where it catalyses economic growth in emerging markets while fostering sustainable trade practices. The SBC Sustainable Fintech Accelerator Program will be crucial in helping them kickstart their mission to close the trade finance gap for Latin American SMEs by unlocking institutional investor capital.

vabble's technology will not only revolutionise trade finance, but will also make a difference in global sustainability goals and the pathway of financial inclusion for SMEs worldwide.

Learn more about vabble here.

Discover the AI-Driven Innovators in our Fintech 2023 Cohort.

Kayla Dreuth avatar

Kayla Dreuth

Marketing Coordinator @ Startupbootcamp Australia