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Payments, Trade Finance and Supply Chains:

Is Latin America Ready for the Next Stage?

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Latin American banking leaders discussing payments, trade finance, supply chains and financial innovation
Three perspectives, one transformation: real-time payments, interoperability, trade digitalization, and new opportunities for banks across Latin America and the Caribbean.

The transformation of transaction banking in Latin America is no longer simply about digitizing processes.

The real change is happening in the way payments, trade finance, technology, and supply chains are beginning to connect within an increasingly faster, more interoperable, and customer-centric ecosystem.

This was precisely the focus of our recent BAFT webinar in Spanish, “Payments, Trade Finance and Supply Chains in Latin America and the Caribbean,” a conversation I had the privilege of moderating with three professionals who bring extensive experience across the region:

  • Juan Elias of Swift, with more than 25 years of experience working with financial institutions on the implementation of technology solutions.
  • John Rodriguez of TerraPay, with extensive experience in cross-border payments, interoperability, and digitalization.
  • Emy Ruiz of Fifth Third Bank, with more than two decades of experience in global transaction banking, trade finance, and supply chain finance.

Although we approached the market from different perspectives, one message was clear: the infrastructure is changing, and customer expectations are changing even faster.

Global payment infrastructure enabling faster, transparent and traceable transactions

From Moving Money to Transforming the Payment Experience

One of the most interesting points from the conversation with Juan Elias was that competing in payments is no longer simply about the price of a transaction.

Customers are looking for speed, transparency, traceability, and ease of use.

Juan explained how Swift’s evolution enables institutions to operate through a global infrastructure connecting more than 11,500 institutions across more than 200 countries and regions, while tools such as APIs, pre-validation, and payment tracking can significantly improve the customer experience.

A payment moving seamlessly through connected financial institutions with real-time visibility

He also shared a particularly relevant statistic: according to a survey conducted by Swift, approximately 76% of customers would consider returning to their bank if the bank offered the services they are currently seeking from a fintech.

That changes the conversation.

The question is no longer simply how much it costs to modernize payments. It becomes: How much business is a financial institution losing by not doing so?

Banks, fintechs and digital wallets connecting through interoperable cross-border payment networks

Interoperability Opens a New Opportunity for Banks

John Rodriguez took the conversation one step further, exploring the connection between banks, fintechs, digital wallets, and real-time payment networks.

Latin America already has important examples of domestic instant payment adoption. The next challenge is extending that capability into the cross-border environment.

For John, the opportunity lies in interoperability.

Banks and digital platforms connecting through an interoperable payment infrastructure

The combination of banking networks, new market participants, APIs, digital wallets, and standards such as ISO 20022 creates the possibility of an ecosystem in which banks can participate more actively in high-volume and cross-border payments without giving up their central role in compliance, custody, and trust.

His message was particularly important for the region: banks do not have to be displaced by fintechs.

On the contrary, they can leverage the infrastructure they already have and collaborate with new participants to expand their reach.

Trade finance supporting growth across interconnected supply chains in Latin America

Trade Finance: From Financing Transactions to Financing Growth

But payments are only one part of this transformation.

With Emy Ruiz, we shifted the conversation toward trade finance, working capital, factoring, and supply chains.

Nearshoring is creating a significant opportunity for Latin America, but relocating or expanding production into the region immediately creates new needs: financing, liquidity, risk management, and stronger supplier networks.

This is where trade finance takes on a much more strategic role.

As Emy explained, companies are no longer necessarily approaching their banks simply asking for a letter of credit or a specific product.

The questions are changing:

How do I free up liquidity?
How do I optimize my cash conversion cycle?
How do I support my suppliers?
How do I finance my next stage of growth?

Trade finance connecting suppliers, production and working capital to support business growth

This also requires financial institutions to change the conversation, moving from a product-centric approach toward one centered on the customer’s challenges and objectives.

Banking moving toward an irreversible real-time and connected digital ecosystem

A Transformation That Is Unlikely to Reverse

There was another important point of agreement among the panelists.

Once customers experience faster payments, greater transparency, improved traceability, or more efficient digital processes, they are unlikely to want to return to the previous model.

The same applies to trade finance.

Payments, financing and supply chains converging in a connected real-time financial ecosystem

Emy summarized it clearly during our conversation: digitalization is irreversible.

Payments, documentation, financing, information, and supply chains will become increasingly connected and available in real time.

This represents a tremendous opportunity for Latin America and the Caribbean, but it also raises an important question for financial institutions:

Are we modernizing our products, or are we truly modernizing the customer experience?

The distinction matters.

Technology alone does not transform banking. Transformation happens when technology enables institutions to solve problems more effectively, reduce friction, expand access, strengthen compliance, and create new business opportunities.

Spanish-language financial conversations connecting professionals across Latin America and the Caribbean

More Conversations in Spanish for Latin America

This webinar also marked the beginning of a series of BAFT conversations in Spanish, as part of a broader effort to bring more knowledge, training, and international best practices to financial professionals and institutions across Latin America and the Caribbean.

During the conversation, Emy highlighted precisely this objective: creating more opportunities for training, knowledge sharing, and collaboration while connecting the talent and opportunities within our region to global best practices.

And this is just the beginning.

Financial professionals across Latin America connecting through Spanish-language knowledge and collaboration

We invite you to watch the full webinar and continue the conversation about the future of payments, trade finance, and transaction banking in Latin America and the Caribbean.

tags: Payments , Trade Finance , Supply Chains
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