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Komfie Manalo, Opalesque Asia:

Following a period of de-concentration in the competitive landscape of trade finance providers in Asia, the leading providers on average lost a few points of market penetration, as a long tail of local and emerging regional banks picked up relationships, said Greenwich Associates.

These new competitors won client relationships largely on the basis of ready balance sheets and competitive pricing. The competitive landscape stabilized over 2013 to 2014, with the aggregate market penetration of the region’s top five holding at 2013 levels. Similarly the smaller providers—those ranked outside the region’s Top 20—saw their gains plateau as a group, Greenwich said in its report.

"Nevertheless, the strong and growing supply of trade finance in Asia has resulted in a highly competitive market—much to the benefit of companies looking to utilize trade finance with high quality service and very low prices," says Greenwich Associates consultant Paul Tan.

This favorable pricing is helping to fuel an increase in the use of trade finance among companies across Asia. Both the share of large corporates in Asia (including MNC subsidiaries) using trade finance and the average amount spent each year by users has been increasing steadily.

Companies utilizing trade finance are doing so for two primary reasons: as an alternative source of financing, and for process improvement in ......................

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