Page 91 - IMDR Journal 2025

Research Article
precise and secure with the help of technologies. Also,
researchers understand that the changing role of deep tech in
trade finance. That opens a new opportunity for businesses.

LITERATURE REVIEW
Deep technologies have transformed global trade finance
through major advancements during recent years. The new
technology infrastructure speeds up operations while Figure 2 Blockchain Adoption In Trade Finance (2018-2023)
providing enhanced security and operational efficiency. (Source: International Chamber of Commerce (ICC), 2023.
Artificial Intelligence together with blockchain technology Digital Trade and Blockchain Adoption in Trade Finance
and big data analytics and digital currencies establish a
Report)
AI tools are changing trade finance by improving risk
assessment, fraud detection, and predictive analytics.
Machine learning looks through huge amounts of data to
spot unusual patterns and prevent fraud, making
transactions safer. AI chatbots and virtual assistants are
helping with customer service by checking documents and
ensuring compliance automatically. Studies show that AI
also improves credit scoring, which helps more businesses
get access to trade finance. According to a 2023 report from
McKinsey, using AI has boosted fraud detection by 20% and
cut transaction processing times by half. AI use in trade
Figure 1 Growth Of Digital Payment Solutions (2018-2023) finance is growing quickly, with adoption expected to rise by
35% each year as trade institutions turn to machine learning
digital network which reduces risks and boosts transparency
during international trade operations. Financial institutions to improve compliance and credit evaluations.
along with trade organizations currently adopt these tools to
make international transactions simpler and more secure.
Research suggests that these technologies can transform
traditional financial systems and create a more connected
global network. For instance, the World Trade Organization
(WTO) reports that blockchain-based trade finance
solutions could cut transaction costs by as much as 30%. At
the same time, transborder payment solutions are expected
to reach a market value of $250 billion by 2025, showing
how quickly deep tech is advancing in finance.
(Source: World Trade Organization (WTO), 2024. Trends in
Digital Payments and Cross-Border Transactions.) Figure 3 AI-Powered Fraud Detection Improvements (2018-2023)
Blockchain technology has emerged as a critical enabler of (Source: McKinsey & Company, 2023. The Future of AI in
transparency and security in global trade finance. Financial Transactions.)
Blockchain is designed so that once data is recorded, it can't Despite the advantages of deep technologies in financial
be changed, which means trade documents, invoices, and transactions, cybersecurity remains a significant challenge.
payment records are safely stored and can be checked by Blockchain transactions, while secure, are still vulnerable to
everyone involved. Research shows that blockchain speeds smart contract vulnerabilities and cyber threats. AI-driven
up transactions by cutting out middlemen and automating finance models must address concerns related to data
verification. Smart contracts make things even smoother by privacy and algorithmic biases. Several studies suggest that
making sure agreements are followed and triggering the increasing reliance on digital payments and automated
payments automatically when conditions are met. Platforms trade finance solutions necessitates robust cybersecurity
like Contour and Marco Polo have helped reduce trade frameworks to mitigate potential risks. In 2022, global
settlement times from weeks to just a few days. According to
cybercrime costs related to financial transactions exceeded
the International Chamber of Commerce (ICC), 60% of
$6 trillion, highlighting the need for stronger security
banks are now investing in blockchain-based trade solutions measures in deep tech financeRegulations need to keep up
to make processes more efficient and cut costs. Smart with the fast changes happening in financial technology.
contracts have also reduced the need for manual checks, Across the globe, governments and regulators are actively
cutting errors and failed transactions by 40%.
developing policies to keep up with emerging technologies
like blockchain-based trade finance, AI-driven credit
assessments, and digital payment systems. These new
regulations underline the need for countries to collaborate
and ensure that cross-border transactions remain smooth,

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