FinTechs Push Into Banks’ Trade Finance Stronghold

Trade finance, built around letters of credit, guarantees and working-capital facilities, keeps cross-border commerce moving when buyers and sellers face payment and delivery risks. But tariffs, sanctions and shipping disruptions can alter a transaction during the months between purchase order and settlement. FinTechs are exploiting that gap with digital documentation, real-time data and automated decisioning, pressuring banks to replace periodic borrower reviews with transaction-level assessments of counterparties, products, routes and payment terms.

PYMNTS reported on Aug. 13, 2026, after the World Economic Forum highlighted transaction-level underwriting on Aug. 10. Deutsche Bank said the export credit agency-supported finance market reached a record $192.9 billion across 549 transactions in 2025. Separately, 36% of internationally active U.S. small and medium-sized businesses expect to use FinTechs or payment providers for cross-border purchases in 2026, up from 30% in 2025. Banks remain dominant, with expected usage rising to 69% from 64%.