Page 90 - IMDR Journal 2025

Research Article
THE FUTURE OF GLOBAL TRADE
HOW DEEP TECH IS TRANSFORMING FINANCIAL
TRANSACTIONS

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Sarthak Sonawane , Puspal Mondal ,Vanshika Panjabi 1
ABSTRACT
This paper examines how deep technologies such as blockchain, artificial intelligence , machine learning , and Internet of
Things are transforming financial transactions across the global trading ecosystem. Traditional trade finance systems are
typically defined by lengthy documentation processes cumbersome operations which make them vulnerable to fraud. Deep
tech achieves faster and cheaper operations with real-time transparency. Through smart contracts and decentralized ledgers
blockchain technology has been instrumental in the streamlining of cross-border payments and transactions as well as trade
finance and supply chain operations by eliminating middlemen and reducing fraud possibilities. Through risk assessment and
fraud detection as well as predictive analytics, AI and ML systems enhance the precision of financial institutions' data-driven
decision-making. IoT-based tracking systems improve supply chain visibility and security. This paper examines deep tech’s
impact on trade finance, focusing on its applications, benefits, challenges, and future. Using data from financial institutions,
case studies, and insights from WTO, IMF, and World Bank, it explores how these technologies reshape global financial
transactions. The study shows that deep tech has greatly enhanced the efficiency and security of financial transactions but there
are still issues of regulatory uncertainty and cyber risk as well as resistance to digital change that need attention for widespread
take up. Secure, transparent and sustainable global trade finance will only be possible once both governments and financial
institutions have embraced these technologies and put in place a solid regulatory structure.
KEYWORDS Trade Finance, Blockchain, Artificial Intelligence (AI), Cross-Border Transactions, FinTech, Supply
Chain Finance.

INTRODUCTION STATEMENT OF PROBLEM
The Internet of Things (IoT), artificial intelligence (AI), Traditional trade finance systems are plagued by slow
machine learning (ML), and blockchain deep technologies processing times, high transaction costs, fraud risks, and
are advancing quickly to transform trade finance operations complex regulatory requirements, making cross-border
and financial transaction processing worldwide. Traditional transactions inefficient. The lack of transparency and
trade finance has long been burdened by complex reliance on intermediaries further hinder global trade. This
paperwork, high costs, delays, and the risk of fraud, making paper examines how deep tech innovations can address
global transactions slow and expensive. Deep tech these challenges and transform financial transactions.
innovations are helping to solve these challenges by
automating processes and improving transparency and
security. Smart contracts on blockchain platforms offer OBJECTIVES
secure, tamper-proof trade agreements. Meanwhile, AI 1. To see how new technologies like blockchain, AI, and IoT
analytics help detect fraud earlier and improve risk are making global trade finance more efficient, secure, and
management. Digital payment solutions are also making transparent.
international transactions faster and easier for businesses. 2. To look at how things like smart contracts, digital
This paper examines the effects of deep technology on payments, and AI-driven analytics are changing how cross-
financial transactions across global trade while it works to
border transactions happen.
minimize inefficiency and improve security while
transforming traditional financial systems. This study 3. To comprehend some practical challenges and other
analyses key technological advancements in trade finance issues that can come when businesses attempt to utilized
and their global applications while addressing challenges deep tech in their field of trade.
through an examination of secondary data from trade
organizations and financial institutions combined with SCOPE
industry reports. The fast-paced digital transformation
requires businesses together with policymakers and This research paper delves into the theme of themmodern
financial institutions to understand how deep tech can technologies like AI, Block Chain, Digital Payment services
transform global trade finance operations to navigate the are giving ashape to the trade finance worldwide. It
new economic landscape. scrutinizes how digital transactions have become more

Corresponding author: sarthaksonawane2722@gmail.com
1
Institute of Management Development and Research, Pune
Cite this Paper :
Sarthak, S., Puspal, M., Vanshika, P., (2025)
The Future of Global Trade: How Deep Tech is Transforming Financial Transactions, JMDR
81