Global Non-Bank Trade Finance Market – Industry Trends and Forecast to 2031

The Non-Bank Trade Finance Market is experiencing robust expansion, with market size projected to increase from (50.62 Billion) 2023 to (91.48 Billion) 2031, demonstrating a consistent year-over-year growth rate of 7.4%. Non-Bank Trade Finance Market Size, Share, Competitive Landscape and Trend Analysis Report, by Types (Trade Credit, Trade Loans, Factoring, Forfaiting), , by Size Outlook (Small and Medium-Sized Transactions, Large Transactions, Mega Transactions), by Digitalization (Traditional Trade Finance, Digital Trade Finance, Embedded Trade Finance) And Regions (North America (United States, Canada, Mexico), South America (Brazil, Argentina, Chile, Rest of South America), Europe (Germany, France, Italy, United Kingdom, Benelux, Nordics, Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia, Southeast Asia, Rest of Asia-Pacific), MEA (Middle East, Africa)) : Industry Forecast and Opportunity Analysis for 2023 - 2031

The non-bank trade finance market consists of the non-banking institutions that provide trade finance services. Such institutions include an insurance company, investment funds, and fintech, among other financial institutions involved in offering various forms of trade finance products like letters of credit, export credit insurance, and supply chain finance. Generally, the non-bank trade finance market is tapped by increasing factors that have manifested within the last years. Top of all is the increase in the complexity in global or international trade alongside the need for specialised financing solutions, thus creating room for opportunities for non-bank providers.

Non-Bank Trade Finance Report Highlights

Report Metrics	Details
Forecast period	2019-2031
Base Year Of Estimation	2023
Growth Rate	CAGR of 7.4%
Forecast Value (2031)	USD 91.48 Billion
By Product Type	Trade Credit, Trade Loans, Factoring, Forfaiting
Key Market Players	Standard Chartered Bank Societe Generale Corporate Investment Banking Royal Bank of Scotland ING Bank of America Merrill Lynch Mizuho Financial Group Credit Agricole Corporate and Investment Banking Citigroup
By Region	North America (United States, Canada, Mexico) South America (Brazil, Argentina, Chile, Rest of South America) Europe (Germany, France, Italy, United Kingdom, Benelux, Nordics, Rest of Europe) Asia Pacific (China, Japan, India, South Korea, Australia, Southeast Asia, Rest of Asia-Pacific) MEA (Middle East, Africa)

Non-Bank Trade Finance Market Trends

The non-bank trade finance market is continuing to expand as an increasing number of such businesses now avail themselves of quicker, more flexible, and innovative ways of financing. Non-banking financial institutions now come to fill the void that is often left when small and medium enterprises fail to access traditional bank finance. To meet the trade finance needs of these businesses more efficiently at reduced cost and in a less risky manner, these players utilise digital platforms, blockchain, and AI-driven analytics. On the other hand, regulatory changes and more stringent compliance for traditional banks have opened avenues for NBFIs to expand their market share. Increasingly, the cooperation between fintech firms and traditional financial institutions is again changing the landscape towards more transparency and efficiency. Markets across Asia-Pacific, the Middle East, and Africa will keep booming over high trade volumes and the digitisation of trade finance processes, making them rich territories for investment in non-bank trade finance.

Non-Bank Trade Finance Market Leading Players

The key players profiled in the report are Standard Chartered Bank, Societe Generale Corporate Investment Banking, Royal Bank of Scotland, ING, Bank of America Merrill Lynch, Mizuho Financial Group, Credit Agricole Corporate and Investment Banking, Citigroup

Growth Accelerators

Some of the forces driving the non-bank trade financing market include the need for alternative sources of finance, just as speedy and flexible solutions are preferred to traditional bank financing. Many of the innovative trade finance products relating to supply chain financing, invoice factoring, and receivables financing, which have been provided by fintech’s and private lenders, offer systematic and holistic financing options other than long-term debt. Particularly SMEs that can hardly meet the stringent requirements of banks with expensive collateral find it difficult to gain access to secure loans. Another growth component that drives market growth is the expediting adoption of technology and digital platforms for the process optimisation of trade finance by non-banking finance institutions. Such innovative offerings do lure businesses from traditional banking institutions to adopt non-bank trade finance as they offer more efficient, safer, and cheaper alternatives to traditional ones. Therefore, this market is growing dynamically.

Non-Bank Trade Finance Market Segmentation analysis

The Global Non-Bank Trade Finance is segmented by Type, and Region.
By Type, the market is divided into Distributed Trade Credit, Trade Loans, Factoring, Forfaiting . Geographically, the market is assessed across key Regions like North America (United States, Canada, Mexico), South America (Brazil, Argentina, Chile, Rest of South America), Europe (Germany, France, Italy, United Kingdom, Benelux, Nordics, Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia, Southeast Asia, Rest of Asia-Pacific), MEA (Middle East, Africa) and others, each presenting distinct growth opportunities and challenges influenced by the regions.

Competitive Landscape

The field of non-bank trade finance is already a busy marketplace for fintech companies and alternative lenders, highlighting specialised trade finance providers. As they redefine business models with advanced technology, these players are able to fill important gaps that traditional banks leave, for instance, concerning the slow processing time and inflexible requirements for credit. Key differentiators are the use of blockchain for transparency, AI-driven credit assessments, and a digital platform that helps facilitate seamless trade finance solutions for SMEs across countries. A few of the names that have risen to be major players in this category include Greensill Capital, Tradewind, and Drip Capital.

Challenges In Non-Bank Trade Finance Market

The non-banking trade finance sector suffers due to the burdensome regulatory complications and compliance requirements. Unlike banks, non-bank entities have little or no infrastructure for meeting complex anti-money laundering, know-your-customer, and other rules. Thus, operational costs rise, and barriers are created against the chances for smaller players via market access entry. Various laws and regulations in jurisdictions around the world make it hard for non-bank financiers to operate and thus limit growth opportunity scale. Another major problem is access to liquidity and credit risk management. They often have a few sources of capital, which means they cannot finance large and/or high-volume deals. As always, competitive rates are hard to come by in an uncertain economic environment. All of these things combine to stifle growth and competitiveness in this sector.

Risks & Prospects in Non-Bank Trade Finance Market

The non-bank trade finance market is growing very quickly, and this increased demand for alternative funding has been felt especially among small and medium enterprises. Such establishments very often find it difficult to procure financing through banks due to strict regulations and demand for collateral. Such gaps have been filled by non-bank financial institutions, fintech, and trade-orientated lenders through innovative and flexible solutions such as invoice financing, supply chain financing, and digital trade platforms. The growth of global trade and e-commerce has also opened room for non-banking players to serve as alternative sources to the underserved markets in emerging economies. Increasingly globalised businesses require faster and much more adaptable funding to navigate their cross-border transactions and delivery system interruptions and thus become even more promising for non-bank trade finance providers. These businesses may capitalise even more on these trends through customised services delivered using digital mediums and low transaction costs, thus making non-bankers an essential part of the trade finance ecosystem of the future.

Key Target Audience

The key target audience that the non-bank trade finance market mainly consists of small and medium-sized enterprises (SMEs) that are faced with the problem of obtaining hands-on assistance from banks due to more strict credit criteria that they encounter. Such businesses rely on these nonbank providers as a stopgap measure for filling working capital gaps, undertaking cross-border transactions, and improving cash flow management. In most cases, manufacturing, retail, and agricultural services are the main industries that benefit from such services, as they usually seek flexible financing options to support operations along their supply chain and mitigate risks brought about by international trade.,, In addition, there are the multinationals and exporters themselves, who form another good segment for non-bank trade finance—financial products tailored towards optimising trade cycles while reducing transactional complexities. Minimum entry criteria for non-bank providers to this category involve the market online and digital platform, rapid approval, and unique solutions that include invoice financing, factoring, and supply chain financing.

Merger and acquisition

Despite a sharp increase in non-bank mergers and acquisitions in trade finance, leading from the need to enhance capabilities or market access, 2024 saw a significant increase in consolidation among non-bank lenders, particularly SME lending and revenue-based finance. Among these marked indications was large acquisition activity aimed at enhancing service while increasing market size; such was evidenced in the **iBusiness Funding acquisition of Funding Circle,** which aims to increase small business lending solutions in the sector, furthering economic development and entrepreneurship. Again, the entire architecture of M&As has been cautious for non-bank financial institutions on account of the prevailing economic conditions. The report indicates that, even if deal volume declined in the first half of the year 2024, several large deals are being pursued, and therefore all evidence points to the fact that firms are preparing for a future boom. Quite a good number of companies have shown great interest in the technological integration of the merger aspect in order to be more competitive in trade finance. >

Analyst Comment

"The Non-Bank Trade Finance Market is a growing segment of the global financial industry that offers trade finance solutions to businesses, particularly SMEs, who may have difficulty accessing traditional bank financing. These non-bank providers, including fintech companies, insurance companies, and investment funds, offer a range of trade finance products such as letters of credit, export credit insurance, and supply chain finance."