Santander Secures A Stake In Komgo To Accelerate Digital Transformation

Santander Corporate & Investment Banking has secured a stake in the world’s largest trade finance network, Komgo. The investment is aimed at accelerating the digital transformation of trade and working capital products at Santander.

Santander invests in Komgo

Santander has made a strategic equity investment in Komgo. The two companies are expected to work together in creating synergy between the innovative technological offerings and corporate clientele base offered by Komgo and the unique global footprint and leadership skills in trade finance offered by Santander.

The amount of investment that Santander has made in Komgo has yet to be revealed. However, the company will be joining other shareholders at Komgo, such as BNB Paribas, Citi, ConsenSys, MUFG, Shell, Société Générale, Total, among others.

“We want to support our clients to simplify and digitalize trade finance. Partnering with Komgo means we can automate communications, optimize end-to-end processes, reduce operational risk, and deliver the best client experience. In addition, it will enable us to innovate and find synergy in our broad Trade Finance business,” said the Global Head of Trade & Working Capital Solutions at Santander CIB, Mencia Bobo.

Komgo will also use the partnership to boost its market leadership by growing the trade finance proposition after closing the acquisition of Global Trade Corporation in 2022. Santander CIB will offer expertise and customized Trade & Working Capital solutions that will work on the portfolios of Komgo’s clients in Europe and the Americas.

The CEO of Komgo, Souleima Baddi, said Komgo was a preferred trade finance network targeting the largest banks in the industry. The platform also offered the best experience to corporate clients within their workflow management. Santander CIB was among the largest trade banks globally, and the investment boosted trust in the network.

The partnership will also provide immense benefits to the clients. These clients will benefit from the technology offerings offered by Komgo while also improving client-to-bank communications. Innovative solutions across trade finance and commodities will also be deployed.

Komgo is expanding its global presence

This development also comes at a time when Komgo is boosting its presence across the trade finance sector. Last year, the company closed the acquisition of Global Trade Corporation based in Canada. The two companies will work on offering trade finance digitalization to more than 120 multinational clients and more than 11,000 subsidiaries.

Last week, one of the founding shareholders at Komgo, Crédit Agricole, emerged as the first bank to adopt the Trakk solution for the issuance of paper guarantees. The Trakk solution is used to make the verification process easy. The CIB product offered by Crédit Agricole will become a simple security solution that is largely adopted and could even emerge as a new industry standard.