DP World Trade Finance has partnered with UAE Trade Connect (UTC), marking a significant milestone in UTC’s mission to transform trade finance and combat fraud across the UAE.
DP World Trade Finance is the first non-bank financial institution participant with direct lending capabilities and embedded fintech value proposition to join the consortium.
As part of the collaboration, DP World Trade Finance would be able to leverage UTC's platform to detect fraudulent and suspicious invoices as a risk mitigant for its lending capability.
UTC, which was co-created by e-enterprise and the UAE banking industry in 2021, offers an innovative technology solution to detect suspicious transactions, and prevent fraud and duplication in real-time. The platform is highly scalable, completely cloud-native and incorporates cutting-edge technologies such as private blockchain (DLT) and Artificial Intelligence (AI).
DP World Trade Finance connects businesses with financial institutions while also directly offering trade finance facilities on its own. It provides businesses with a streamlined approach to access trade finance solutions, enabling customers to apply for credit on a digital platform. This connects them with the best options from global financiers that may have otherwise been out of reach. Access to trade finance solutions has long been a barrier for businesses seeking global trade opportunities, as many face challenges in securing the upfront funds required to move cargo.
Zul Javaid, CEO of UTC, said, “DP World Trade Finance’s addition to the UTC consortium is a step in recognising that the country’s lending ecosystem is diversifying, with emerging fintech companies and alternate lenders entering the space. We look forward to DP World Trade Finance collaborating closely with our consortium members to further develop the UAE’s digitised trade finance ecosystem. The lenders using UTC’s platform have already presented over Dh170 billion worth of invoices for validation and analysis – demonstrating its clear position as the national trade finance platform.”
Sinan Ozcan, Senior Executive Officer of DP World Trade Finance, said, “If we are to truly address the trade finance gap, we need organisations to work together to build transparency and security into financial processes. Joining the UTC platform marks a strong commitment from DP World Trade Finance in achieving this. Working together with UTC members, we aim to transform trade finance by building transparency into the lending process.”
With the recent enactment of the Invoice Factoring Law in the UAE, the UTC blockchain platform will play a key role in enabling lenders to increase offerings to SMEs. It will enhance lending confidence and transparency, facilitating increased opportunities.