According to Bertrand Theaud, founder of Hong Kong-based FinTech Statrys, the proliferation of family-owned SMEs across Asia continues to propel cross-border trade volumes in the region.
Yet these smaller companies struggle to access the kinds of financial products and services larger enterprises wield to finance that trade.
Currency Conversion HeadacheOne of the biggest challenges in cross-border trade for any kind of business relates to foreign exchange.
Across Asia, Theaud explained, invoices are often issued in U.S. dollar – yet business costs are, of course, calculated in a supplier’s local currency, exposing that business to FX risks.
In Asia, key markets include Hong Kong and Singapore, two of the world’s largest FX powerhouses.