For corporates and SMEs, the Legal Entity Identifiers (LEI), offers a low cost, simple tool to quickly verify buyers and sellers, reduce fraud risk, enable track and trace or atomic settlement technologies and establish greater transparency through global supply chains.
International Economics is conducting a research study to provide the cost and benefit analysis for the application of LEIs by SMEs and corporates across their global supply chains.
The LEI is listed as a foundational standard for future digital trade in the World Trade Organization and International Chamber of Commerce Standards Toolkit for Cross Border, Paperless Trade. However, despite LEIs being a foundational requirement for future digitalised trade, widespread use across the financial industry and all listed companies possessing an LEI, only 4% of the wider UK trading community possess it.
Our Team is supporting the ICC UK and preparing a report with a focus on 3 economies, namely Kenya, the UK and Vietnam. The report will provide the business case to drive up the voluntary adoption of LEIs across the UK trading community – specifically corporates and SMEs and used as a case study for global adoption.
The LEI system serves as a publicly available, global directory of legal entities, but it has a much broader potential application than solely for financial institutions.
Our Team is focusing on bringing out the benefits of LEI adoption, including a forward-looking analysis of increasing digital flows requiring the reliance on digital ID for efficiency and trust building. The aim is to provide case studies to highlight the benefits of digital ID for smaller players in terms of financial inclusion.
As businesses seek to expand operations into new markets, the need to explore global supply chains and understand the international regulatory framework becomes crucial. At International Economics Consulting, we build tailor-made strategies for both import and export-oriented business solutions.
