Using digitalisation to navigate macro challenges in trade finance
At the ITFA Americas Annual Conference in Miami, Trade Treasury Payments (TTP) spoke with Dominic Capolongo, Chief Revenue Officer at LiquidX, about the growing role of technology in addressing operational bottlenecks and capital pressures in trade finance.
Capolongo said, “Trade is becoming a much bigger asset class. It’s expanding in reach – from large-cap multinationals to middle-market firms – and that growth is putting pressure on traditional systems and processes that were never designed to scale in this way.”
That expansion, he noted, is forcing a shift in how both banks and non-bank financial players approach trade finance. Historically dominated by manual workflows, trade finance departments are now grappling with the cost of human capital and the inefficiency of outdated reporting models.
Capolongo said, “When I ran a trade business at a bank, we relied on spreadsheets. Once a month, someone would come in and consolidate data from multiple systems just to give us a picture of our exposures. That was the only time we had anything close to a complete view.”
As newer entrants compete for market share and regulatory scrutiny intensifies, Capolongo believes real-time, transaction-level data is becoming essential, not just for operational oversight, but for credit risk and capital allocation.
He said, “To be nimble, to manage your book well, you need to know exactly what’s happening in real time. Capital is expensive, and the ability to deploy it intelligently gives institutions a huge advantage.”
But technology adoption still faces hurdles.
According to Capolongo, many institutions have legacy cost structures and entrenched operational models that resist change. “You have teams in place and processes that are already budgeted for. Changing that means changing mindsets,” he said. “Trade finance has traditionally lagged when it comes to digital transformation, but that’s starting to shift, especially now that capital efficiency is front and centre.”
Reflecting on the conference, Capolongo noted a sense of momentum in the room.
“There’s definitely more energy around the space than ever before. But with that comes uncertainty – geopolitical, regulatory, competitive,” he said. “In that kind of environment, having the right data at your fingertips becomes essential.”
Key Topics
- Trade finance is undergoing a clear shift as institutions move away from manual processes towards digital operating models. Alongside this, the growing importance of real time data is shaping how decisions are made across the industry.
- The asset class itself is expanding, no longer limited to large global corporates but increasingly accessible to mid market businesses. At the same time, operational efficiency has become a priority, particularly as banks look to scale without adding cost.
- Finally, the ecosystem is evolving. Banks are now joined by a wider range of non bank financial institutions, all competing and collaborating within the same space.
Key Insights
Expert Analysis
Dominic Capolongo, Chief Revenue Officer at Liquidex, brings a perspective shaped by years in trade law, banking and fintech. His experience reflects the broader evolution of trade finance from a manual, fragmented discipline into one that increasingly depends on technology and data. He points to a long standing reliance on spreadsheets and manual reporting, where information was often consolidated infrequently and decision making was based on partial visibility. In that environment, understanding total exposure or reacting quickly to changes was difficult. Today, that is no longer sustainable. As trade finance grows in scale and complexity, institutions need a clear and immediate view of their positions. Liquidex addresses this by providing operating technology that brings together data, automates workflows and enables more informed decisions in real time. He also highlights how the market itself is changing. More participants are entering the space, including regional banks and non bank institutions, increasing both competition and the need for agility. In a climate shaped by regulation, tariffs and shifting market conditions, having the right information at the right time is what allows institutions to act with confidence.— Dominic Capolongo
Key Findings
- Manual processes continue to limit efficiency and restrict visibility across many institutions.
- A lack of consolidated data makes it difficult to fully understand exposure and risk.
- The market is becoming more diverse, with a wider range of players involved in providing capital.
- Operational pressures are driving a stronger focus on technology adoption.
- Access to accurate and timely information is increasingly linked to performance and growth.
Implications
- The move towards digital platforms is set to continue, reshaping how trade finance is managed on a day to day basis.
- Real time visibility of data will become a baseline expectation rather than a differentiator.
- A broader mix of participants will continue to enter the market, increasing both liquidity and competition.
- Regional and smaller banks are likely to play a more active role as barriers to entry fall.
- Institutions that do not modernise their operations risk falling behind, both in efficiency and in their ability to respond to market changes.
Key Takeaways
- Information now sits at the heart of effective trade finance.
- Automation allows institutions to grow without a corresponding increase in cost.
- The asset class is expanding, bringing in new participants and opportunities.
- Speed and clarity are essential in a more competitive and uncertain environment.
- Better visibility leads to better decisions, particularly when managing risk and capital.
