Driving Frictionless Trade: a Seamless Global Marketplace
More articles of the Belgium Fintech Magazine
READ ALL ARTICLES
Want an exclusive paper copy?
Want to be the next expert to inspire our audience?
MORE INFO HERE
Discover one of the articles from our brand new magazine, the Belgium Fintech Magazine - #1 Dec 23
Driving Frictionless Trade: Area42’s vision for a Seamless Global Marketplace
An interview with Frederik Simoen, Innovation and Strategy Manager at AREA42
Technological advancements are revolutionizing traditional practices in the world of trade, ushering in a new era of efficiency, affordability, and accessibility. In the near future, businesses may bid farewell once and for all to labour-intensive manual processes that often burden them with excessive paperwork and lengthy verification procedures. Thankfully, the advent of cutting-edge Trade Tech solutions, such as those offered by AREA42, brings a promising shift. They are specially tailored for the B2B industry and developed based on identifying and validating real trade challenges.
But what exactly is Trade Tech?
Empowering trade through technology
Coined by AREA42, Trade Tech represents the convergence of technology and B2B commerce. Unlike financial trading involving stocks or bonds, Trade Tech facilitates the exchange of tangible goods and services. Its core objective is to leverage technology to streamline trade processes, making them smoother, more user-friendly, and cost-effective.
Frederik Simon, Innovation and Strategy Manager at AREA42, shares three ways that AREA42 provides viable Trade Tech solutions:
We develop in-house solutions, leveraging our technology, marketing, sales, administration, and funding expertise.
We partner with existing start-ups and companies, providing partial or complete investments to accelerate their entry into the market.
We actively exchange knowledge, write blogs and whitepapers, and attend conferences to contribute to industry conversations."
Synergizing confluence of trade and finance
The convergence of trade and finance driven by technology has created a new paradigm in the business world. Traditionally, FinTech solutions were mainly consumer-focused but have expanded to encompass trade-related applications. This shift has opened up immense possibilities for technology to transform the B2B trade industry.
Trade Tech now incorporates robust security measures, safety checks, and automated decision-making tools, drawing from successful implementations in the consumer sector. These advancements bring about greater certainty, enhanced security, and improved efficiency in B2B trade.
"At AREA42, we leverage the synergies between Trade Tech and FinTech, considering Trade Tech as a subdomain within the broader FinTech landscape. Our close affiliation with Credendo, our parent company, further strengthens our efforts. With a dedicated focus on financial services within trade, our solutions and investments primarily revolve around areas with a direct financial impact. While we acknowledge that Trade Tech encompasses diverse sectors such as logistics with less financial orientation, it's important to emphasize that our specific expertise drives financial implications within the trade domain," adds Simoen.
An example of how AREA42 delivers on its promise to smooth out trade and make a more risk-savvy trade environment is Terms.
Tech, its B2B payments solution. Terms. Tech is a real Buy Now, Pay Later payment option for marketplaces, merchants, and PSPs. It provides trade credit, offers flexible payment terms, pays sellers up front, takes on the burden of dealing with late payments, and is licensed throughout the EEA and Switzerland.
Cutting through the hype
AREA42 carefully evaluates the potential of new technologies within the context of solving real-world trade problems. Their focus is on understanding the specific needs of their customers and insights gleaned from conversations with CFOs, financial teams, and trade teams across different industries. So rather than simply chasing the latest technology trends or innovations, the insights gleaned from these interactions shape AREA42's mission. AREA42 accomplishes this through its venture-building studio/accelerator, MISSION42.
"While we acknowledge the interesting advancements in Generative Al and the potential impact of Web3, these are viewed as components that could be incorporated into the solutions we develop rather than a starting point of our approach," clarifies Simoen. This ensures that their solutions are innovative but also practical and viable for implementation in real trade scenarios.
Accelerating market entry
AREA42's vision for a seamless global marketplace is grounded in the belief that technology can empower businesses of all sizes to thrive in international trade. Hence, they strongly emphazise supporting small and medium-sized enterprises (SMEs), start-ups, and scale-ups and actively seek strategic partnerships with these businesses. These partnerships extend beyond financial support because they facilitate access to industry networks, expertise, and mentorship, helping these businesses navigate the complexities of the global trade landscape.
"We want to level the playing field, ensuring that technology becomes an enabler rather than a barrier for businesses of all sizes. By empowering small enterprises with the tools, resources, and knowledge to succeed, we seek to drive inclusive growth, foster innovation, and shape a seamless global marketplace that benefits everyone involved," concludes Simoen.
By Marria Qibtia Sikandar Nagra / Nordic Fintech Magazine
Published and Distributed by FinTech Belgium asbl
Contact: Alessandra Guion - CEO