22. Trade Finance & Supply Chain

MIT 15.S12 Blockchain and Money, Fall 2018
Instructor: Prof. Gary Gensler

Prof. Gensler explores trade finance, its attributes, and the significant activity of blockchain technology behind it.

License: Creative Commons BY-NC-SA

[johnmcquiston]

I’ve worked in trade and SCF for the past 25 years with two of the largest American banks, both in NYC and London. I have to admit, both the professor and the students have achieved an impressive and nuanced understanding of one of the more esoteric products in banking. Separately, SCF in particular is one of the more “virtuous” products offered by banks where, if done properly, benefits accrue to all parties to the transaction. If you’re a banking geek like me, this is a big, complex and fascinating (but little known) corner of banking. And we as an industry need younger people taking an interest in this solution set. And it’s a corner of banking where you are really offering true value to your corporate, FI and commercial banking customers. I caught the trade bug after my MBA in 1998 and haven’t lost interest in it yet! Thanks to MIT for putting this out there and well done here folks.

[oswaldkuyler]

This lecturer is amazing, his way of dealing with the questions is priceless :)

[rp]

Thank you MIT for your generosity. This entire course has been incredibly useful to me.

[simonbrown]

this guy is so slever left school at 15 and find myself watching this to educate myselfenjoyed the whole 22 videos....im just shocked that these are meant to be the best studentas in the world james has such a closed mind to be at class 22 surely he can see both advantages in financing and the supply chains coffe neaz is a perfect example of a necassary blockchain...i wonder what job he got in the end

[adop]

I think this was one of the most interesting lectures in the whole course. A lot of ideas were presented with the students debating, I think this will be the direction of blockchain use with NFTs. Tools to use for company efficiency and customer trust.

[DanMcB]

This week I’m conversation I used…immutable, time stamped transaction ledger, medium of exchange, unit of account, and store of value.
MIT, Thank you very much for this.

[sriramanandakrishnan]

Very well done, Sir. I always find supply chain as a proper use case for block chain and this lecture proved that I am at least on the right track

[simonbrown]

incredible thanks mit im british but married to american was a repubklican this guy swinging me....feel usa finances safe in his hands grear guy and teacher

[berajpatel]

Raises the question customer interfaces, legacy of data processing & how this would eventually change the hardware we use to establish recognition / execution !

[fksons]

This is a fantastic lecture on Trade finance.

[Infinitenothingness]

I cant stress the value I got from this class.. Thank you Prof Gensler and MIT. !

[lawniczakjohn]

I don’t know enough about supply chain economics to form an educated opinion, but it will be interesting to see how this field evolves with the blockchain.

49:47 is a great comment.

[dailymanager]

VECHAIN for SUPPLY CHAIN
Crypto is everywhere

[tun]

learnt so much other than blockchain from these lectures

[Dannydrinkbottom]

Very good Qs and As were brought up by the students...

[VasVordokas]

Itd be interesting to see if the 15% of LC’s as a total trade finance include standby LC’s, and embedded LC facilities within working capital syndicate loans. Of course and to your point the growth of MNC’s and globalization has provided such large structured facilities to only larger companies. Most small to mid size companies sell on open account and have credit insurance which for their size and scale is much cheaper trade finance solution.

[brainstormingsharing]

Absolutely well done and definitely keep it up!!! 👍👍👍👍👍

[teklegirmay-kwkl]

thank you so much for your course this best for me at the import trade

[bafanamotheogane]

What's the name of the last song?

[chd]

About 5 minutes in one of the students mentions a study by the Asian Development bank stating that 50% of Trade Finance credit applications made by SMBs/SMEs are declined vs. 7% for larger companies. Does anyone know where to find this report?