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By MrMarket

While supply chain challenges have been making headlines around the globe as the single most important factor to disrupt economic recovery, the role and future possible models for #supplychain #finance gain new importance. Let’s take a look.

Even before the start of the pandemic, the World Economic Forum was estimating (in 2018) the global gap in #tradefinance to stand at US$1.5 trillion, forecasted to rise to US$2.5 trillion by 2025. Based on a more recent estimate of the Asian Development Bank (ADB), this gap has widened even more to US$1.7 trillion, an increase of 15% over the 2018 original number.

When we talk about a trade finance gap, we mean nothing more than a gap between demand and supply, i.e. the difference between invoices that get financed and those that don’t. It is easy to understand that with uncertainty reaching sky-high levels during the pandemic, rejection rates (for financing) have dramatically increased, which mostly accounts for the 15% increase.

In such an environment, the emergence of new business models – as a result of #FinTech providers disrupting the status-quo – and their mixing with existing bank-led approaches, will give rise to a new, transformed supply chain finance (SCF) value chain.

According to McKinsey, there are four possible future models:

- Bank led, whereby banks improve end-to-end delivery by reimagining client journeys, renovating #technology, and delivering #AI-enabled financing

- Bank-led #partnerships, whereby banks partner with platform providers to develop solutions (ERP integration, third-party data) but retain control of the customer interface

- Platform led, whereby nonbank #platforms scale to provide #SCF across the full industry value chain of suppliers and buyers, linking into banks and nonbank financing providers

- Diverse supply-chain finance ecosystem, whereby a broad range of providers coexist, each catering to different needs

Going forward, there are three main directions standing out to define the future of the industry:
—   Depending on geographies and market dynamics, it is likely that all of these approaches will co-exist in some form or another for some time, until market forces push one or the other to a more dominant position
—   The role of Fintechs, will be increasingly becoming more influential and omnipresent along the entire value-chain from enabling banks to address long-standing pain points (i.e. KYC requirements and onboarding) to powering new third-party platforms
—   Technology will be taking a front seat in driving change. There are, for example, more than 40 #blockchain consortia globally, taking the industry through the ecosystem approach

Opinions: my own, Graphic source & 4-model reference: McKinsey & Company, The 2020 McKinsey Global Payments Report

https://twitter.com/marketmaster88/status/1506763020936093710?s=21

Lex,

A non-executive chairman of the board does not occupy a management position in the company. The chair operates independently from the company, receives plans and proposals from the CEO, through the corporate secretary, and presents these to the board for approval.

Non-executive directors provide independent oversight and serve on committees concerned with sensitive issues such as the pay of the executive directors and other senior managers; they are usually paid a fee for their services but are not regarded as employees.

Non-executive directors are not full-time employees of the company, rather they are appointed by the shareholders….they can leave with immediate effect as J.Coyle did.

From 4 March 2022 RNS
Mr Coyle is leaving the company for personal reasons, which will allow him to better balance existing time obligations across his extensive portfolio of non-executive roles. The Board has acknowledged Mr Coyle's personal reasons and has agreed with Mr Coyle that his departure will take place with immediate effect.
In the RNS of 31 December 2021, the Company provided an update on in-progress White Label and Inventory Monetisation initiatives. Once the first transactions are complete, the Board expects an increase in business volume. Due to the level of commitment this will subsequently require, Mr Coyle has decided it is the right time to step away from his role at SYME.

Mr Coyle joined the Board at the end of October 2021 and has since been instrumental in supporting the Company's progression. During his time with the Company, TradeFlow Capital Management ("TradeFlow") signed a revenue-generating Investment Advisory agreement with DP World, per the RNS of 18 February 2022. He has also worked to improve SYME's corporate governance structure and implement a refreshed investor relations strategy.
SYME Chief Executive, Alessandro Zamboni, said: "I am truly grateful to Jim for his support and counsel. While his tenure with us has been short, his impact has been immense. The level of commitment he has given to the role far exceeded our expectations and he leaves our business in a stronger position than he found it. We are very sorry that demands on Jim's highly valuable time prevent him from being able to provide the level of support required for our next phase of our growth. On behalf of the Board, I would like to thank him for his tremendous service to Supply@ME. I wish Jim all the best for the future."

James Coyle said: "It is with deep regret that I have decided to step down from my role at Supply@ME. Having worked closely with the extremely dedicated team I wish the business every success in the years to come."
This backs up my theory. The RNS also states that the company are now looking for a PERMANENT LONG TERM Successor which suggests Mr Coyle was brought in temporarily to review and strengthen the Finetech Unicorn before lift off across multiple Geographies.

D.WHITE WAS ONLY CHAIRMAN FOR RTO….HE WAS ALWAYS

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