The staggering $2.5 trillion global trade finance gap could be significantly narrowed by treating digital data as “invisible collateral”, according to proposals released at the World Economic Forum Annual Meeting in Davos today.
Pushkar Mukewar, CEO of Drip Capital, argued that millions of small and medium-sized enterprises (SMEs) are being locked out of the financial system not because they are risky, but because their reliability remains invisible to lenders.
“The irony is that these businesses generate trust signals every day,” Mukewar said. “The challenge is simply unlocking the data that sits across ports, paperwork and logistics systems, waiting to be pulled together in a way lenders can actually use.”
Unlocking ‘trust signals’
The concept of “invisible collateral” involves using a firm’s digital trade footprint — such as customs clearances, shipping logs and payment cycles — as verifiable evidence of creditworthiness, replacing the traditional reliance on physical assets like land or inventory.
Mukewar pointed to successful initiatives already in operation as proof that the model works.
He cited Singapore’s Networked Trade Platform, which connects customs and logistics data for bank verification, and Mexico’s CFDI framework, which creates an audit-backed national record of every commercial invoice.
Similarly, Dubai’s linked customs-port ecosystem now provides lenders with real-time visibility into cargo, drastically reducing risk.
AI as the new underwriter
The shift is being accelerated by artificial intelligence, with companies like DP World and Drip Capital already using machine learning to interpret shipment histories and detect fraud.
“Artificial intelligence strengthens this shift,” Mukewar noted. “The same capability is opening up new ways for lenders to interpret shipment histories, payment cycles and logistics data at scale, all without replacing human oversight.”
However, the executives warned that “invisible collateral” is far from becoming a global norm, identifying four critical shifts required to scale the solution:
- Regulatory updates: Laws must evolve to recognise digital records as valid instruments, aligning with frameworks like UNCITRAL’s electronic records standards.
- Standardisation: Trade data must “speak the same language” through initiatives like the ICC’s Digital Standards Initiative.
- Transparent AI: Scoring models must be explainable and auditable, in line with OECD AI Principles, to ensure trust.
- SME digitisation: Support is needed to prevent a digital divide where only tech-savvy firms benefit.
If these conditions are met, the impact could be transformative for developing economies.
Mukewar painted a picture of a future where a Kenyan craft exporter secures financing based on delivery performance rather than land titles, or a seafood exporter in Gujarat receives better pricing due to validated cold-chain compliance.
“Treating trade data as a responsibly governed global public good is one of the few scalable, system-wide levers capable of narrowing the financing gap and making global commerce more resilient and inclusive,” he concluded.
