Dublin, Feb. 11, 2022 (GLOBE NEWSWIRE) — The “Letter of Credit Confirmation Market by L/C Type and End User: Global Opportunity Analysis and Industry Forecast, 2021-2030” report has been added to ResearchAndMarkets.com’s offering.
According to this report the global letter of credit confirmation market was valued at $4.30 billion in 2019, and is projected to reach $4.99 billion by 2027, growing at a CAGR of 3.18% from 2020 to 2027.
A letter of credit is a financial tool, which guarantees the buyer’s payment to the sellers during the trade. It is used in both domestic and international trades market in order to facilitate secured payment terms and transactions globally. In addition, a bank or a financial institution acts as a third-party between the buyer & the seller, which issues a letter of credit and guarantees the payment of funds on the completion of certain commitments mentioned in the trade documents.
Furthermore, for confirmation of letter of credit transaction usually involves two banks namely, the buyer’s bank which is an issuing bank and the seller’s bank which is a confirming bank. The payments are guaranteed by the issuing bank that further issues a letter of credit on behalf of the importer. Moreover, the confirming bank adds its confirmation to the letter of credit, assuming that the terms & condition for existing trade are fulfilled from issuing banks.
With an increased global trade and to avoid risk of payments, the importers and exporters are largely implementing protection for their trade documents via letter of credit confirmation services. In addition, rise in demand for customized trade finance solutions globally and regulatory support in growth of strict regulations for secured letter of credit confirmation services is some of major growth factors in the market. However, due to an involvement of several intermediaries between the issuer and beneficiary banks globally, the online letter of credit confirmation procedure are prone to fraudulent and cyber attacks such as loss of huge trade amounts and confidential data leakages. This, as a result, becoming major restraining factors in the letter of credit confirmation market.
On the contrary, increase in technologies such as distributed ledger technology (DLT) and blockchain is expected to provide lucrative opportunities in terms of creating real-time digitalized letter of credit contract, auto notifications alert over trades, and enhance business efficiency in the market. Moreover, increase in business operations and global trading among small & medium enterprises, and large companies are providing lucrative opportunities for confirming banks to expand their business in letter of credit confirmation services in the market.
The global letter of credit confirmation market is segmented on the basis of L/C type, end user, and region. In terms of L/C type, it is bifurcated into sight L/C and usance L/C. Based on end user, the market is segmented into small-sized businesses, medium-sized businesses, and large enterprises. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players profiled in the global letter of credit confirmation market analysis are Bank of America Corporation, Citigroup, Inc., DBS Bank Ltd, JP Morgan Chase & Co., Mizuho Bank, Ltd., MUFG Bank, Scotiabank, Standard Chartered, Sumitomo Mitsui Banking Corporation, and The PNC Financial Services Group, Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
Key Benefits
- The study provides an in-depth analysis of the global letter of credit confirmation market along with the current & future trends to elucidate the imminent investment pockets.
- Information about key drivers, restrains, and opportunities and their impact analysis on the market size is provided in the report.
- Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the industry.
- The quantitative analysis of the global letter of credit confirmation market from 2020 to 2030 is provided to determine the market potential.
Key Topics Covered:
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
3.1. Market definition and scope
3.2. Key forces shaping the letter of credit confirmation market
3.3. Methods of payment collection in letter of credit confirmation market
3.3.1. Invoices
3.3.2. Bills of Exchange
3.3.3. Government Documents
3.4. Market dynamics
3.4.1. Drivers
3.4.1.1. Increased risk of non-payment
3.4.1.2. Rise in demand for customized trade services
3.4.1.3. Growth in strict terms and conditions
3.4.2. Restraint
3.4.2.1. Increase in fraud and cyber attacks
3.4.3. Opportunities
3.4.3.1. New technological developments
3.4.3.2. Untapped potential of emerging economies
3.5. COVID-19 impact analysis on letter of credit confirmation market
3.5.1. Impact on letter of credit confirmation market size
3.5.2. Change in consumer trends, preferences, and budget impact, owing to COVID-19
3.5.3. Framework for market challenges faced by letter of credit confirmation providers
3.5.4. Economic impact on letter of credit confirmation providers
3.5.5. Key player strategies to tackle negative impact on the industry
3.5.6. Opportunity analysis for letter of credit confirmation providers
CHAPTER 4: LETTER OF CREDIT CONFIRMATION MARKET, BY L/C TYPE
4.1. Overview
4.1.1. Market size and forecast
4.1.2. Market volume and forecast
4.2. Sight L/Cs
4.2.1. Key market trends, growth factors, and opportunities
4.2.2. Market size and forecast, by region
4.2.3. Market volume and forecast, by region
4.3. Usance L/Cs
4.3.1. Key market trends, growth factors, and opportunities
4.3.2. Market size and forecast, by region
4.3.3. Market volume and forecast, by region
CHAPTER 5: LETTER OF CREDIT CONFIRMATION MARKET, BY END USER
5.1. Overview
5.1.1. Market size and forecast, by region
5.1.2. Market volume and forecast, by region
5.2. Small enterprises
5.2.1. Key market trends, growth factors, and opportunities
5.2.2. Market size and forecast, by region
5.2.3. Market volume and forecast, by region
5.3. Medium-sized enterprises
5.3.1. Key market trends, growth factors, and opportunities
5.3.2. Market size and forecast, by region
5.3.3. Market volume and forecast, by region
5.4. Large enterprises
5.4.1. Key market trends, growth factors, and opportunities
5.4.2. Market size and forecast, by region
5.4.3. Market volume and forecast, by region
CHAPTER 6: LETTER OF CREDIT CONFIRMATION MARKET, BY REGION
CHAPTER 7: COMPANY PROFILES
7.1. BANK OF AMERICA CORPORATION
7.1.1. Company overview
7.1.2. Key Executives
7.1.3. Company snapshot
7.1.4. Product portfolio
7.1.5. Business performance
7.2. CITIGROUP, INC.
7.2.1. Company overview
7.2.2. Key Executives
7.2.3. Company snapshot
7.2.4. Operating business segments
7.2.5. Product portfolio
7.2.6. Business performance
7.3. DBS BANK LTD.
7.3.1. Company overview
7.3.2. Key Executives
7.3.3. Company snapshot
7.3.4. Product portfolio
7.3.5. Business performance
7.4. JPMORGAN CHASE & CO.
7.4.1. Company overview
7.4.2. Key Executives
7.4.3. Company snapshot
7.4.4. Product portfolio
7.4.5. Business performance
7.5. MIZUHO BANK, LTD.
7.5.1. Company overview
7.5.2. Key Executives
7.5.3. Company snapshot
7.5.4. Product portfolio
7.5.6. Business performance
7.6. MUFG BANK, LTD.
7.6.1. Company overview
7.6.2. Key Executives
7.6.3. Company snapshot
7.6.4. Product portfolio
7.7. SCOTIABANK
7.7.1. Company overview
7.7.2. Key Executives
7.7.3. Company snapshot
7.7.4. Product portfolio
7.7.5. Operating business segments
7.7.6. Business performance
7.8. STANDARD CHARTERED
7.8.1. Company overview
7.8.2. Key Executives
7.8.3. Company snapshot
7.8.4. Product portfolio
7.8.5. Operating business segments
7.8.6. Business performance
7.9. SUMITOMO MITSUI BANKING CORPORATION
7.9.1. Company overview
7.9.2. Key Executives
7.9.3. Company snapshot
7.9.4. Product portfolio
7.10. THE PNC FINANCIAL SERVICES GROUP, INC.
7.10.1. Company overview
7.10.2. Key Executives
7.10.3. Company snapshot
7.10.4. Product portfolio
7.10.5. Business performance
For more information about this report visit https://www.researchandmarkets.com/r/rakbv7
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