The financial landscape for businesses operating in emerging markets is experiencing a significant shift as BBVA, one of Spain’s largest banking groups, strengthens its strategic partnership with Olea, a trade finance origination and distribution platform. This collaboration aims to expand financing options for companies operating across developing economies, potentially unlocking billions in previously inaccessible capital.
Trade finance has long been a critical yet underserved sector, particularly in regions where traditional banking relationships remain limited. The financing gap stands at approximately $1.7 trillion globally according to the International Chamber of Commerce, with emerging markets bearing the brunt of this shortfall. BBVA’s enhanced partnership with Olea represents a concerted effort to address this imbalance through digital innovation.
“What we’re seeing is a fundamental reimagining of how capital flows to businesses operating in challenging markets,” says Alejandra Kindelan, Head of Research and Public Policy at Santander, a competitor watching these developments closely. “The traditional constraints around trade finance are being systematically dismantled through technology.”
The partnership leverages BBVA’s extensive banking infrastructure across Latin America and Asia combined with Olea’s digital platform, which was jointly established by Standard Chartered and Linklogis in 2021. This technological integration allows institutional investors to access trade finance assets that were previously difficult to evaluate or incorporate into diversified portfolios.
For businesses operating in markets from Mexico to Indonesia, the impact could be substantial. Access to working capital remains one of the most significant barriers to growth for mid-sized companies engaged in cross-border trade. The Asian Development Bank estimates that approximately 45% of trade finance applications from small and medium enterprises are rejected by traditional lenders, creating a persistent funding gap.
BBVA’s approach reflects a broader trend within global banking toward embedding financial services within digital ecosystems rather than operating through traditional banking channels alone. The bank has invested heavily in digital transformation over the past decade, allocating approximately €11 billion toward technology and innovation initiatives since 2018.
“Financial institutions have recognized that the future of banking isn’t just about building better banks—it’s about creating more accessible financial infrastructure,” notes Jorge Sicilia, BBVA’s Director of Economic Research. “Our partnership with Olea represents this philosophy in practice.”
The platform employs sophisticated risk assessment algorithms that evaluate transaction patterns and business relationships rather than relying solely on traditional credit metrics. This approach potentially opens financing options to “credit invisible” businesses that maintain strong operational fundamentals but lack the historical banking relationships typically required for trade finance.
Institutional investors have shown increasing appetite for trade finance assets, attracted by their relatively stable returns and low correlation with traditional fixed income investments. Global asset managers including BlackRock and Allianz have expanded their alternative credit offerings to include trade finance instruments, creating additional liquidity for platforms like Olea.
The timing of this partnership expansion coincides with significant headwinds facing emerging market economies. Rising interest rates in developed markets have strengthened the U.S. dollar, increasing repayment burdens for dollar-denominated debt and complicating trade relationships. These pressures make efficient trade finance even more critical for businesses navigating volatile economic conditions.
Financial technology solutions addressing trade finance have attracted substantial venture capital investment over the past three years. Specialized platforms focusing on this sector have raised over $1.2 billion globally since 2020, according to data from PitchBook. The BBVA-Olea partnership represents an alternative approach, with established financial institutions building proprietary solutions rather than acquiring standalone startups.
For BBVA, this initiative aligns with its broader strategic focus on emerging markets, which has seen the bank maintain significant operations in Mexico, Turkey, and South America despite some European competitors retreating from these regions. The bank’s emerging market portfolio generated approximately 61% of its attributable profit in recent quarters, highlighting the importance of these markets to its overall growth strategy.
Competition in this space remains intense, with major financial institutions including Citi, HSBC, and Standard Chartered all expanding their digital trade finance offerings. The race to capture market share in this underserved segment reflects both the size of the opportunity and the strategic importance of embedding banking services into global trade flows.
Regulatory complications remain a significant hurdle, with cross-border transactions still subject to complex compliance requirements and jurisdictional differences. BBVA and Olea have emphasized their commitment to maintaining robust anti-money laundering protocols while streamlining the customer experience through document digitization and automated compliance checks.
As global trade patterns continue evolving in response to geopolitical realignments and supply chain restructuring, the importance of flexible financing solutions will likely increase. BBVA’s partnership with Olea positions both entities to potentially benefit from these structural changes while addressing a persistent funding gap facing businesses in developing economies.
