The 2025 Master Trade Loan Agreement (MTLA) is designed as an industry-standard document used for lending between financial institutions to finance or refinance specified trade transactions. The 2025 MTLA – English Law reflects changes based on current market expectations, law, and practice including the demise of LIBOR, and the impact of Brexit―as EU Law no longer applies to the UK.
Click on the link below to read more about the 2025 MTLA.
On March 11, BAFT submitted a letter in response to USTR’s request for comments to assist in reviewing and identifying unfair trade practices and initiating necessary actions to investigate harm from non-reciprocal trade arrangements.
Click on the link below to access the comment letter.
Via Trade Finance Global by Deepa Sinha and Deepesh Patel
The conversation surrounding real-time payment systems is evolving quickly, and nowhere is this more evident than in the dynamic between RTP (Real-Time Payments) and FedNow, two significant players within American payments.
To learn more about these and about the payments space in general, Trade Finance Global (TFG) spoke with Deepa Sinha, Vice President of Payments and Financial Crimes at the Banker’s Association for Financing and Trade (BAFT).
Why is a discussion around payment systems even relevant? As Sinha summarised, “There is no trade without payments.”
Real-time payment (RTP) systems represent a modern financial infrastructure designed to enable near-instantaneous money transfers between banks and financial institutions. These systems allow funds to be sent, received, and settled within seconds, 24/7, compared to the historical multi-day processing times of legacy banking systems. While primarily developed in the US, RTP technologies are increasingly gaining global traction.
Operated by a private entity, RTP has established itself among larger banks and financial institutions, building a network with extensive coverage. However, it has faced challenges with limited adoption from smaller institutions, mainly due to technical and financial requirements.
And then there is FedNow, which is backed by the Federal Reserve, and specifically designed to bridge this gap. It aims to serve smaller banks, credit unions, and financial entities that previously found RTP challenging to access due to costs or technological barriers. This resource could level the playing field, ensuring that real-time payments are within reach no matter the size of the institution.
Sinha said, “The coexistence of both RTP and FedNow could serve complementary segments, broadening the reach of real-time payments across various financial institutions, from large banks to smaller community banks and credit unions.”
While their methods and audiences may differ, their respective goals are inherently similar: to provide a faster, more accessible way for institutions and consumers to move money. Two payment systems striving for similar outcomes create an environment of competition—hopefully, a case of healthy competition that drives progress.
Sinha said, “Competition and innovation could encourage both networks to offer unique features or partnerships, and that would enhance the US payment systems competitiveness with international real-time payment networks.”
The introduction of FedNow challenges RTP to do more—perhaps lowering costs or expanding services to remain competitive. In sheer numbers, FedNow is leading: as of July 2024, more than 800 financial institutions across the US have adopted FedNow, compared with 570 on RTP.
With this, FedNow must demonstrate that it can effectively provide value to smaller institutions and address unmet needs. While two-thirds of banks aren’t signed up to RTP or FedNow, the demand is there: 63% of US corporate bankers experience significant or overwhelming demand for instant payments from their corporate customers.
The pressure to innovate is pushing both systems to introduce new features, explore unique partnerships, and strive for efficiencies that might only have been possible with the presence of a competitor. The October 2024 G20 roadmap identified the significant potential held by instant payments in making cross-border payments faster, easier, and cheaper; healthy competition between RTP systems could give rise to excellent options for businesses and consumers.
Yet, the story of RTP and FedNow is not just about competition; it’s also about collaboration, ultimately through interoperability. For RTP and FedNow to succeed, they must eventually learn how to communicate with one another.
Sinha said, “While RTP and Fed now use similar ISO 20022 standards, full interoperability could be complex and might take time to achieve. The two can definitely coexist, though. If interoperability is prioritised, banks could seamlessly move transactions across both networks, potentially allowing payments initiated in one network to be completed in another.”
ISO 20022 is a global standard that provides a universal language for financial services messaging, creating a common framework for exchanging payment information across different systems. By adopting this standard, RTP and FedNow are using a shared “dictionary” that potentially makes communication between networks easier, though full interoperability remains complex.
This collaboration is easier said than done. While both systems use similar standards, achieving true interoperability is complex and requires considerable coordination and compromise. But it’s worth it. If RTP and FedNow manage to bridge their systems effectively, it would mean a more resilient payment infrastructure for all users.
But this story doesn’t end with interoperability or competition, and it extends far beyond the US borders. As the payments landscape evolves, stakeholders cannot ignore the global context.
With the rise of new alliances like BRICS and the exploration of alternative systems to Swift, payments are transforming worldwide. The development of RTP and FedNow is part of this larger narrative. It’s about positioning the US payment systems to be competitive globally while addressing domestic needs.
Just as speed is essential, so too is the financial system’s integrity. In a world where criminals, from money launderers to fraudsters, are constantly looking for weaknesses, providing fast, secure, and transparent payment options has become crucial to financial security. Innovations such as fraud prevention tools, regulatory frameworks, and enhanced financial inclusion lie at the core of these efforts.
Sinha said, “We’re fighting money laundering, fraud, human trafficking, arms smuggling, drug trafficking. All of these are a profound detriment to the peaceful function of our societies and communities.”
Regulatory frameworks have emerged as critical defenders in this evolving digital payments ecosystem. Standards like the Payment Card Industry Data Security Standard (PCI DSS) provide robust requirements for safeguarding financial data, mandating encryption, regular security assessments, and comprehensive compliance reporting. The EMVCo‘s global payment security standards have been particularly effective, reducing worldwide payment fraud by establishing stringent protocols for card and mobile transactions.
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Internationally, Japan pioneered real-time payment processing with its Zengin system in 1973, (though it only became a 24/7 service in 2018). Currently, over 70 countries across six continents support real-time payments. In 2022, the number of transactions reached 195 billion, representing a remarkable 63% year-on-year growth, per ACI Worldwide’s March 2023 report.
India leads the market, processing 89.5 billion transactions through its Unified Payments Interface, launched in 2016. Brazil, China, Thailand, and South Korea follow as significant real-time payment markets.
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By 2028, real-time payments are expected to constitute 27.1% of all payments globally.
With two systems working side by side, each catering to different market segments, the potential to transform how money moves across the country is immense. Their rivalry pushes both to innovate, improve accessibility, and lower costs, while their eventual interoperability could lead to a unified system that benefits everyone
By 2028, RTP is expected to constitute 27.1% of all global payments. With this capability, international trade finance will be unrecognisable, dramatically reducing transaction times and increasing liquidity for businesses.
The journey will continue as these two systems learn to paradoxically coexist, compete, and ultimately work together to improve real-time payments for everyone.
Launched in 2015, the 2025 Future Leaders class includes 40 individuals from 17 countries representing a variety of disciplines within transaction banking around the globe.
WASHINGTON — BAFT, the leading global financial services association for international transaction banking, today announced its Future Leaders Program class of 2025. Now in its tenth year, the program recognizes upcoming talent in the global transaction banking industry.
This year’s pool of applicants who were nominated by their respective institutions broke last year’s previous record. The selected class of 2025 includes 40 individuals from 17 countries across the Americas, Europe, Asia, MENA and Africa, representing a variety of disciplines within transaction banking.
The class of 2025 was divided into five project teams tasked with addressing current industry issues, including artificial intelligence threats for trade finance fraud, accelerating cross-border real-time payments across major corridors, BRICS, operating model for corresponding banking, and an update on the almost 300 graduates from the program.
BAFT board and regional council members serve as project sponsors and future leader alumni support the teams as mentors. The class will meet in person at the BAFT Europe Bank to Bank Forum in March and will graduate at the BAFT’s Global Annual Meeting in May.
“Over the last decade, this program has recognized and facilitated the continued growth of some of the top talent in our industry,” said Tod Burwell, president and CEO, BAFT. “The participants have a unique opportunity to expand their knowledge of industry topics outside the scope of their day-to-day responsibilities and provide insights that collectively lead to innovative approaches.”
BAFT congratulates the following individuals who were selected to this year’s program:
Learn more about BAFTs Future Leader Program here.
About BAFT
BAFT, the leading global financial services association for international transaction banking, helps bridge solutions across financial institutions, service providers and the regulatory community that promote sound financial practices enabling innovation, efficiency, and commercial growth. BAFT engages on a wide range of topics affecting transaction banking, including trade finance, payments, and compliance.
BAFT Media Contact:
Mike Townsend
Senior Director, Public Relations
[email protected]
+1 (202) 663-5471
WASHINGTON — The American Bankers Association (ABA) and BAFT, the leading global financial services association for international transaction banking and an ABA subsidiary, today announced their mutually agreed upon plans to separate in the second half of 2025.
While ABA and BAFT have worked together successfully since 2002, BAFT’s global footprint and overseas opportunities have expanded in recent years, with more than 70% of BAFT member banks currently headquartered outside of the U.S. This necessitated a realignment of strategic priorities so that BAFT can better represent its membership.
“BAFT has been a valuable and strategic partner for many years,” said Rob Nichols, ABA president and CEO. “Though our paths forward will diverge, we will continue to work together on shared policy priorities and wish BAFT success in their next chapter.”
“As BAFT continues to grow globally, organizational independence will allow us to best serve the needs of our diverse membership,” said Tod Burwell, BAFT president and CEO. “We are grateful for the many years of support from the ABA and look forward to continued collaboration in the years to come.”
“BAFT has been the leading global industry association for transaction banking and this separation will further enable us to reflect the truly international footprint and needs of our membership,” said Suresh Subramanian, chair of the board of BAFT. “The support of ABA through the years has been invaluable to BAFT and we look forward to a continued partnership on areas of mutual interest.”
ABA and BAFT will work together to navigate separation details to ensure a smooth transition for BAFT members. BAFT will remain focused on providing thought leadership, best practice guidance, policy advocacy, education and training with a focus on the transaction banking business.
ABA and BAFT will continue to provide updates to their respective memberships as the process moves forward.
About the American Bankers Association
The American Bankers Association is the voice of the nation’s $24.2 trillion banking industry, which is composed of small, regional and large banks that together employ approximately 2.1 million people, safeguard $19.1 trillion in deposits and extend $12.6 trillion in loans.
About BAFT
BAFT, the leading global financial services association for international transaction banking, helps bridge solutions across financial institutions, service providers and the regulatory community that promote sound financial practices enabling innovation, efficiency, and commercial growth. BAFT engages on a wide range of topics affecting transaction banking, including trade finance, payments, and compliance. The association website is www.baft.org.
BAFT Media Contact:
Jeff Sigmund
SVP, Public Relations
[email protected]
+1 (202) 663-5439
Via Trade Finance Global by Deepa Sinha, Deepesh Patel, and Carter Hoffman
Change is still a slow march when it comes to gender equality in the financial services industry. While incremental progress has been made, the lingering pay gap remains glaringly apparent.
It’s easy to point to the gender pay gap as a clear-cut metric of inequality, but the reality is far more complex, hidden beneath structural barriers and cultural norms that still need to be dismantled. Addressing these challenges requires a shift in mindset, a concerted movement to lift each other up, and a willingness to initiate bold, practical actions.
Trade Finance Global (TFG) spoke with Deepa Sinha, Vice President of Payments and Financial Crimes at the Banker’s Association for Financing and Trade (BAFT), to learn more about how these deeply rooted issues took centre stage and discuss strategies for turning awareness to action.
The ongoing fight against the gender pay gap in finance
The gender pay gap is a longstanding issue that has haunted the finance industry for decades. Today, many financial institutions are still paying women significantly less than their male counterparts.
It’s not just about pay. Financial services have been slow to recognise the full value of women’s contributions, often relegating them to roles where opportunities for advancement are limited. The pay gap is just a glaring symptom of an underlying condition that involves issues around opportunity, inclusion, and cultural change.
However, awareness of the gap is growing, and that is the first step toward change.
It’s not enough to simply notice the disparity; action is needed. There are now efforts within the financial services industry to develop focused and structured initiatives that provide women with the tools they need to succeed.
Whether through mentorship programmes, leadership development opportunities, or actively engaging women in thought leadership, these steps, while not revolutionary, are certainly evolutionary—nudging the industry closer to fairness.
But what exactly do women bring to transaction banking that might have been overlooked? There’s something to be said about the unique strengths that women often bring to this field, particularly in areas like payments and financial crime compliance. Women approach challenges differently, and this difference is precisely what the banking sector needs.
Sinha said, “Research suggests that women often approach risk more cautiously, which can be a critical advantage in transaction banking. This perspective helps create robust risk assessments, reducing potential exposure to fraud and other financial crimes.”
Beyond risk management, empathy plays a key role in enhancing customer interactions. Women’s emphasis on empathetic communication builds trust—a quality that cannot be overstated in the world of payments and finance.
Sinha said, “This empathy allows them to address customer pain points with more nuanced solutions. That’s crucial in transaction banking where trust and relationships are essential.”
This empathy, combined with a detail-oriented approach, becomes especially powerful in fields like compliance. When it comes to anti-money laundering efforts and screening for suspicious activity, an eye for detail can mean the difference between catching a subtle sign of wrongdoing and letting it slip through the cracks.
Promoting gender equality in an industry like finance requires confronting structural, cultural, and individual barriers head-on. This means building programmes that mentor and sponsor women while simultaneously addressing the systems that have kept women from advancing for far too long.
Sinha said, “Sponsorship or championship, in particular, where senior leaders actively advocate for women’s advancement, is essential for promoting women in decision-making roles. These programs provide women with the guidance, visibility, and advocacy necessary to advance into senior leadership, where gender representation is still severely limited.”
Mentorship is a key piece of this puzzle—not just traditional mentorship—but reverse mentorship, where younger professionals offer insights to senior leaders, allowing for a two-way exchange of knowledge. By creating spaces where women can be visible, their voices heard, and their work recognised, these types of initiatives can help bring true representation into leadership roles.
But perhaps just as important as these programmes is the need for flexible and inclusive work policies. Many in the workplace balance professional aspirations with caregiving responsibilities, whether for young children or elderly family members.
Sinha said, “If I have young children that I need to leave the office for at five o’clock every day to go take care of, but I’m able to hop back online later after the kids are down for the evening, that flexibility is invaluable. It’s priceless. When you have a network that is similar to you but is diverse enough to understand what you’re going through, you’re all going to make it work and make it happen together. But that only comes with the relationships that we build with our peers.”
Tearing down barriers also means setting measurable goals. Accountability is crucial; organisations must set clear targets for diversity and track progress. Transparent metrics around hiring, promotions, pay equity, and leadership representation are what will ultimately keep companies honest about their efforts.
Sometimes, profound change starts with a simple idea.
Sinha said, “Just after our BAFT global annual meeting in 2023 in San Francisco, I was in an elevator discussing women in payments with Maram Al-Jazireh from Arab Bank, and I mused, ‘Why don’t we have anything for women in payments and trade?’. She replied, ‘Well, why don’t you start something?’”
What started as an innocent question became a full-fledged movement. The WTB initiative grew out of the recognition that women in the industry, especially in middle management, need more opportunities to connect, grow, and thrive.
This initiative focuses on several key areas: mentorship, education, sponsorship, and building a community where women can share experiences, learn from one another, and navigate the complexities of the banking world together. This program aims to provide women in middle management with the knowledge and skills they need to succeed.
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The journey towards gender equality in finance is ongoing. While progress has been slow, conversations are starting to turn into actions, and ideas are taking root, growing into initiatives like Women in Transaction Banking. The pay gap is still there, but it is no longer being ignored. Women are stepping into roles that are reshaping the culture of banking, bringing empathy, caution, detail, and collaboration to the forefront.
Rethinking how the financial industry operates at every level, through mentorship, flexible policies, or simply recognising the unique value that diverse perspectives bring, are steps towards a more inclusive future.
There’s still a long way to go, but as these conversations take hold, there’s a sense that meaningful change is the natural next step.
© 2025 BAFT (Bankers Association for Finance and Trade)
