Adapting to shifting trade flows: SMBC’s support for businesses in Asia Pacific

How evolving trade flows are reshaping business strategies, and the role SMBC plays in helping clients navigate this change.

Global trade flows are evolving rapidly, driven by geopolitical tensions, changing supply chains and regulations, and technological innovation. While these trends present challenges, they also open new opportunities for growth, collaboration, and innovation across the Asia Pacific region. Sumitomo Mitsui Banking Corporation (SMBC) has been monitoring these developments, identifying where they can help businesses to adapt, thrive, and capture emerging opportunities.

Trade flows are evolving, not shrinking

Global trade flows have witnessed significant shifts in recent years, especially across Asia Pacific. Intra-Asia trade remains robust, accounting for over 50% of Asia’s total trade volumes, driven by regional integration and supply chain diversification.

While some corridors, such as China-US, have fluctuated significantly recently due to geopolitical tensions, other industries and geographies continue to prove resilient.

For instance, ASEAN has stayed a vibrant hub, with Vietnam, Indonesia, and Thailand benefiting from supply chain realignment. Another example is the India-Middle East-Africa (IMEA) corridor that has been gaining traction, especially across the energy, infrastructure, and pharmaceuticals sectors. Meanwhile, sectors such as renewable energy, electronics, and agri-food have maintained strong growth with rising global demand.

In helping clients to stay agile and resilient through structured trade finance, supply chain financing, and risk mitigation tools such as FX hedging and political risk insurance, our sector-focused approach – particularly in renewables and infrastructure – has enabled clients to navigate volatility and seize opportunities on emerging trade corridors.

Tailored strategies for a complex environment

In today’s environment where businesses are operating in multiple markets, a one-size-fits-all approach no longer suffices. Even within the same industry, companies are affected differently depending on where they source, produce, and sell.

As such, tailored strategies that combine operational insights with financing solutions are essential to meet specific needs of businesses. SMBC partners closely with clients to design customized financing solutions that address their cash flow, trade, and working capital requirements, allowing them to efficiently manage their operations across more than 12 markets in Asia Pacific.

Cash Flow Visualization Dashboard

For instance, the bank co-created a digital cash flow visualization solution for a client facing funding gaps due to its non-optimal cash conversion cycle. By digitizing the cash flow management process, the client gained real-time visibility into its liquidity position, allowing faster data-driven financial decisions.

By aligning its solutions with each client’s industry and geographical needs, SMBC aims to help clients manage market volatility with agility and capture growth.

Expanding access for SMEs

Small and medium enterprises (SMEs) remain the backbone of Asia’s trade ecosystem. However, unlike large corporates with established financing channels, SMEs often face significant constraints – including limited access to credit and insufficient resources – which hinder their growth and participation in global trade.

The widening access to trade finance is critical for strengthening supply chains and sees digital innovation as a game-changer in this landscape. Emerging technologies can democratize access by enabling banks to cascade large credits down to SMEs, thus broadening financing opportunities and facilitating access beyond borders – and here is where digital can be a great equalizer – for efficiency, and inclusion.

SMBC’s innovative supply chain financing programs empower large corporate clients to extend early payment access to their suppliers, thus enhancing liquidity for smaller manufacturers. The bank is also expanding its trade finance capabilities through strategic fintech partnerships and regional digital trade networks, creating more accessible, fully digital, and end-to-end trade finance solutions tailored to the needs of SMEs. Leveraging technologies such as Artificial Intelligence (AI), Machine Learning (ML) automation, API-driven Architectures, and data analytics, SMBC is driving smarter, faster, more secure and more collaborative trade finance solutions, fostering a more inclusive trade finance environment.

Turning Complexities into Opportunities

Rather than viewing fragmentation as a threat, it could very well serve as a strategic inflection point. The evolving trade and financing landscape presents a window of opportunity for companies willing to rethink traditional models, from redesigning operations and re-engineering supply chains, to rethinking market strategies for greater efficiency and competitiveness. Turning trade complexities into growth opportunities for businesses, SMBC leverages our regional footprint to provide cross-border financing solutions across high-growth corridors such as IMEA. The bank also partners with other stakeholders to help exporters access new markets through risk-mitigated financing.

SMBC’s Role as a Strategic Partner

Resilience in global trade will increasingly depend on adaptability, innovation and strategic foresight. SMBC’s 'flow banking' strategy – a one-stop approach – integrates cash management, trade services and treasury solutions to help clients optimize working capital and stay agile in a dynamic environment.

These solutions are also tailored for key industries and sectors and are further supported by the bank’s network of transaction banking specialists and relationship managers, offering clients trusted regional expertise and hands-on support wherever they operate.

As trade flows continue to shift, SMBC remains firmly committed to helping businesses in Asia Pacific navigate change and unlock new opportunities for growth in an increasingly complex world.