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Letter of Credit Confirmation Market by L/C Type, and End User: Global Opportunity Analysis and Industry Forecast, 2020-2027

  • ID: 5125503
  • Report
  • May 2020
  • Region: Global
  • 258 pages
  • Allied Analytics LLP
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FEATURED COMPANIES

  • Citigroup Inc.
  • DBS Bank Ltd
  • JP Morgan Chase & Co.
  • Mizuho Bank Ltd.
  • MUFG Bank
  • Scotiabank
  • MORE
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, an 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, an 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/Cs and usance L/Cs. Based on end user, the market is segmented into small enterprises, medium-sized enterprises, 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 for stakeholders
  • 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 2027 is provided to determine the market potential.
KEY MARKET SEGMENTS

BY L/C Type
  • Sight L/Cs
  • Usance L/Cs
By End User
  • Small Enterprises
  • Medium-sized Enterprises
  • Large Enterprises
By Region
  • North America
  • U.S.
  • Canada
  • Mexico
  • Europe
  • Germany
  • France
  • UK
  • Italy
  • Spain
  • Russia
  • Rest of Europe
  • Asia-Pacific
  • Japan
  • China
  • Australia
  • India
  • South Korea
  • Rest of Asia-Pacific
  • LAMEA
  • Brazil
  • Turkey
  • Saudi Arabia
  • South Africa
  • Rest of LAMEA
KEY MARKET PLAYERS
  • Bank of America Corporation
  • Citigroup, Inc.
  • DBS Bank Ltd
  • JPMorgan Chase & Co
  • Mizuho Bank, Ltd.
  • MUFG Bank
  • Scotiabank
  • Standard Chartered
  • Sumitomo Mitsui Banking Corporation
  • The PNC Financial Services Group, Inc.
Note: Product cover images may vary from those shown
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FEATURED COMPANIES

  • Citigroup Inc.
  • DBS Bank Ltd
  • JP Morgan Chase & Co.
  • Mizuho Bank Ltd.
  • MUFG Bank
  • Scotiabank
  • MORE
Chapter 1: Introduction
1.1. Report Description
1.2. Key Benefits for Stakeholders
1.3. Key Market Segments
1.4. Key Market Segments
1.5. Research Methodology
1.5.1. Secondary Research
1.5.2. Primary Research
1.5.3. Analyst Tools & Models

Chapter 2: Executive Summary
2.1. Key Findings
2.1.1. Top Impacting Factors
2.1.2. Top Investment Pockets
2.2. CXO Perspective

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

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
6.1. Overview
6.1.1. Market Size and Forecast, by Region
6.1.2. Market Volume and Forecast, by Region
6.2. North America
6.2.1. Key Market Trends, Growth Factors, and Opportunities
6.2.2. Market Size and Forecast, by L/Cs Type
6.2.3. Market Volume and Forecast, by L/Cs Type
6.2.4. Market Size and Forecast, by End-user
6.2.5. Market Volume and Forecast, by End-user
6.2.6. Market Revenue Analysis, by Country
6.2.7. Market Volume Analysis, by Country
6.2.7.1. U. S.
6.2.7.1.1. Market Size and Forecast, by L/Cs Type
6.2.7.1.2. Market Volume and Forecast, by L/Cs Type
6.2.7.1.3. Market Size and Forecast, by End-user
6.2.7.1.4. Market Volume and Forecast, by End-user
6.2.7.2. Canada
6.2.7.2.1. Market Size and Forecast, by L/Cs Type
6.2.7.2.2. Market Volume and Forecast, by L/Cs Type
6.2.7.2.3. Market Size and Forecast, by End-user
6.2.7.2.4. Market Volume and Forecast, by End-user
6.2.7.3. Mexico
6.2.7.3.1. Market Size and Forecast, by L/Cs Type
6.2.7.3.2. Market Volume and Forecast, by L/Cs Type
6.2.7.3.3. Market Size and Forecast, by End-user
6.2.7.3.4. Market Volume and Forecast, by End-user
6.3. Europe
6.3.1. Key Market Trends, Growth Factors and Opportunities
6.3.2. Market Size and Forecast, by L/Cs Type
6.3.3. Market Volume and Forecast, by L/Cs Type
6.3.4. Market Size and Forecast, by End-user
6.3.5. Market Volume and Forecast, by End-user
6.3.6. Market Revenue Analysis, by Country
6.3.7. Market Volume Analysis, by Country
6.3.7.1. Germany
6.3.7.1.1. Market Size and Forecast, by L/Cs Type
6.3.7.1.2. Market Volume and Forecast, by L/Cs Type
6.3.7.1.3. Market Size and Forecast, by End-user
6.3.7.1.4. Market Volume and Forecast, by End-user
6.3.7.2. France
6.3.7.2.1. Market Size and Forecast, by L/Cs Type
6.3.7.2.2. Market Volume and Forecast, by L/Cs Type
6.3.7.2.3. Market Size and Forecast, by End-user
6.3.7.2.4. Market Volume and Forecast, by End-user
6.3.7.3. UK
6.3.7.3.1. Market Size and Forecast, by L/Cs Type
6.3.7.3.2. Market Volume and Forecast, by L/Cs Type
6.3.7.3.3. Market Size and Forecast, by End-user
6.3.7.3.4. Market Volume and Forecast, by End-user
6.3.7.4. Italy
6.3.7.4.1. Market Size and Forecast, by L/Cs Type
6.3.7.4.2. Market Volume and Forecast, by L/Cs Type
6.3.7.4.3. Market Size and Forecast, by End-user
6.3.7.4.4. Market Volume and Forecast, by End-user
6.3.7.5. Spain
6.3.7.5.1. Market Size and Forecast, by L/Cs Type
6.3.7.5.2. Market Volume and Forecast, by L/Cs Type
6.3.7.5.3. Market Size and Forecast, by End-user
6.3.7.5.4. Market Volume and Forecast, by End-user
6.3.7.6. Russia
6.3.7.6.1. Market Size and Forecast, by L/Cs Type
6.3.7.6.2. Market Volume and Forecast, by L/Cs Type
6.3.7.6.3. Market Size and Forecast, by End-user
6.3.7.6.4. Market Volume and Forecast, by End-user
6.3.7.7. Rest of Europe
6.3.7.7.1. Market Size and Forecast, by L/Cs Type
6.3.7.7.2. Market Volume and Forecast, by L/Cs Type
6.3.7.7.3. Market Size and Forecast, by End-user
6.3.7.7.4. Market Volume and Forecast, by End-user
6.4. Asia-Pacific
6.4.1. Key Market Trends, Growth Factors and Opportunities
6.4.2. Market Size and Forecast, by L/Cs Type
6.4.3. Market Volume and Forecast, by L/Cs Type
6.4.4. Market Size and Forecast, by End-user
6.4.5. Market Volume and Forecast, by End-user
6.4.6. Market Revenue Analysis, by Country
6.4.7. Market Volume Analysis, by Country
6.4.7.1. Japan
6.4.7.1.1. Market Size and Forecast, by Lcs Type
6.4.7.1.2. Market Volume and Forecast, by Lcs Type
6.4.7.1.3. Market Size and Forecast, by End-user
6.4.7.1.4. Market Volume and Forecast, by End-user
6.4.7.2. China
6.4.7.2.1. Market Size and Forecast, by Lcs Type
6.4.7.2.2. Market Volume and Forecast, by Lcs Type
6.4.7.2.3. Market Size and Forecast, by End-user
6.4.7.2.4. Market Volume and Forecast, by End-user
6.4.7.3. Australia
6.4.7.3.1. Market Size and Forecast, by Lcs Type
6.4.7.3.2. Market Volume and Forecast, by L/Cs Type
6.4.7.3.3. Market Size and Forecast, by End-user
6.4.7.3.4. Market Size and Volume, by End-user
6.4.7.4. India
6.4.7.4.1. Market Size and Forecast, by L/Cs Type
6.4.7.4.2. Market Volume and Forecast, by L/Cs Type
6.4.7.4.3. Market Size and Forecast, by End-user
6.4.7.4.4. Market Size and Volume, by End-user
6.4.7.5. South Korea
6.4.7.5.1. Market Size and Forecast, by L/Cs Type
6.4.7.5.2. Market Volume and Forecast, by L/Cs Type
6.4.7.5.3. Market Size and Forecast, by End-user
6.4.7.5.4. Market Size and Volume, by End-user
6.4.7.6. Rest of Asia-Pacific
6.4.7.6.1. Market Size and Forecast, by L/Cs Type
6.4.7.6.2. Market Volume and Forecast, by L/Cs Type
6.4.7.6.3. Market Size and Forecast, by End-user
6.4.7.6.4. Market Volume and Forecast, by End-user
6.5. LAMEA
6.5.1. Key Market Trends, Growth Factors and Opportunities
6.5.2. Market Size and Forecast, by L/Cs Type
6.5.3. Market Volume and Forecast, by L/Cs Type
6.5.4. Market Size and Forecast, by End-user
6.5.5. Market Volume and Forecast, by End-user
6.5.6. Market Revenue Analysis, by Country
6.5.7. Market Volume Analysis, by Country
6.5.7.1. Brazil
6.5.7.1.1. Market Size and Forecast, by L/Cs Type
6.5.7.1.2. Market Volume and Forecast, by L/Cs Type
6.5.7.1.3. Market Size and Forecast, by End-user
6.5.7.1.4. Market Volume and Forecast, by End-user
6.5.7.2. Turkey
6.5.7.2.1. Market Size and Forecast, by L/Cs Type
6.5.7.2.2. Market Volume and Forecast, by L/Cs Type
6.5.7.2.3. Market Size and Forecast, by End-user
6.5.7.2.4. Market Volume and Forecast, by End-user
6.5.7.3. Saudi Arabia
6.5.7.3.1. Market Size and Forecast, by L/Cs Type
6.5.7.3.2. Market Volume and Forecast, by L/Cs Type
6.5.7.3.3. Market Size and Forecast, by End-user
6.5.7.3.4. Market Volume and Forecast, by End-user
6.5.7.4. South Africa
6.5.7.4.1. Market Size and Forecast, by L/Cs Type
6.5.7.4.2. Market Volume and Forecast, by L/Cs Type
6.5.7.4.3. Market Size and Forecast, by End-user
6.5.7.4.4. Market Volume and Forecast, by End-user
6.5.7.5. Rest of LAMEA
6.5.7.5.1. Market Size and Forecast, by L/Cs Type
6.5.7.5.2. Market Volume and Forecast, by L/Cs Type
6.5.7.5.3. Market Size and Forecast, by End-user
6.5.7.5.4. Market Volume and Forecast, by End-user

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
Note: Product cover images may vary from those shown
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FEATURED COMPANIES

  • Citigroup Inc.
  • DBS Bank Ltd
  • JP Morgan Chase & Co.
  • Mizuho Bank Ltd.
  • MUFG Bank
  • Scotiabank
  • MORE
According to the report titled, 'Letter of Credit Confirmation Market by L/C Type and End User: Opportunity Analysis and Industry Forecast, 2020-2027' 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 confirmation is a process of document verifications and validating proof of export against the letter of credit requirements, which is conducted by confirming banks.. These banks add its confirmation to a credit upon the issuing bank’s request. In addition, if the buyer is unable to make payment on the purchase, the seller makes a demand on issuing bank for the payment. Furthermore, rise in demand for customized trade finance solutions globally and regulatory support in growth of strict regulations for secured letter of credit confirmation services are some of the major letter of credit confirmation market trends.

In addition, due to 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. However, the online letter of involvement of several intermediaries has led to the credit confirmation procedure more 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 basis of L/C type, the sight L/Cs segment dominated the letter of credit confirmation industry in 2019 and is projected to maintain its dominance during the forecast period. Sight payment methods are largely used by traders due to it instant and timely payment features in the market. Furthermore, under sight payments, the sellers receives the payment quickly after shipping the goods, thus fueling market growth and are expected to grow at a significant CAGR during the forecast period.

The large enterprises segment accounted for the largest market share in letter of credit confirmation industry in 2019 and is projected to maintain its dominance during the forecast period. The presence of big giants from different industry verticals in foreign trade has led them to be the major adopter of letter of credit confirmation. However, small & medium enterprises segment is expected to exhibit highest growth during the forecasted period.

By region, the global letter of credit confirmation market was dominated by Asia-Pacific in 2019 and is expected to maintain this trend during the forecast period. The significant growth of trade among small & medium enterprises in developing economies, such as India and China are the major factors driving the letter of credit confirmation market growth. The dependency of traders in developing countries on letters of credit services is expected to maintain its dominance during the forecast period.

Key Findings of the Study:

By L/C type, the sight L/Cs segment led the letter of credit confirmation market size in terms of revenue in 2019.
By region, LAMEA is expected to exhibit significant growth during the forecasted period.
By end user, the large enterprises segmented accounted for the highest letter of credit confirmation market share in 2019.
By region, Asia-Pacific generated the highest revenue in 2019.

The key players profiled in the letter of credit confirmation market 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, an. The PNC Financial Services Group, Inc.. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
Note: Product cover images may vary from those shown
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  • 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
  • The PNC Financial Services Group Inc
Note: Product cover images may vary from those shown
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The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.

They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.

They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:

  • Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
  • Scientific and technical writings for product information and related preemptions
  • Regional government and statistical databases for macro analysis
  • Authentic news articles and other related releases for market evaluation
  • Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast

Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.

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