Trade

Try to conceptualise the financial landscape of 1921. In the direct aftermath of the First World War, many European economies were burdened by war debts and reparations, particularly Germany under the Treaty of Versailles; the US emerged as the world’s leading creditor nation, shifting the financial centre of gravity from London to New York; global trade and investment were disrupted; and the gold standard, though still influential, was under strain as countries struggled to stabilise their currencies.

Also in 1921, the Bankers’ Association for Finance and Trade (BAFT) was established, uniting 10 banks in midwestern US to expedite business transactions of their international trade customers.

After more than two decades under the American Bankers Association (ABA) umbrella, the Bankers’ Association for Finance and Trade (BAFT) is charting a new course as an independent organisation. The separation, effective September 2025, will be in response to an increasingly fragmented global financial landscape.

“When we started talking about this separation, some maybe 30 months ago, we looked at it from a theoretical construct. The events of today tell us how right we were,” explained Suresh Subramanian, outgoing BAFT Chair, in the opening remarks of the BAFT 2025 Global Annual Meeting in Washington, DC. With 70% of BAFT’s membership coming from international institutions, the need for geopolitical neutrality has become paramount.

Neutrality in a polarised world

The challenge was clear: how can an organisation truly serve global banking interests while remaining a subsidiary of an association chartered specifically for US banks? The ABA, by design, focuses on US-chartered institutions. For BAFT to maintain credibility as a neutral voice in international trade finance, independence became not just desirable but essential.

BAFT is expanding its engagement beyond traditional boundaries, recently electing its first Americas Council co-chair from Mexico’s Banorte—the first time this position has been held by someone outside the US or Canada. These partnerships mirror broader industry trends toward collaboration in an increasingly complex environment. Just as Swift works with banking associations worldwide to navigate regulatory frameworks while maintaining global connectivity, BAFT is positioning itself to serve as an independent bridge between diverse financial jurisdictions. Local partnerships will enable BAFT to provide more relevant, jurisdiction-specific support while maintaining its global perspective.

Managing transition risks

The separation won’t be without challenges. Moving from the infrastructure support of a large, well-funded parent organisation requires significant operational restructuring. All HR, finance, IT, and customer systems must be migrated to new platforms—a complex undertaking that could disrupt member services if not executed flawlessly.

The re-onboarding requirements that many member organisations will face represent perhaps the biggest immediate challenge. As banking institutions implement increasingly stringent vendor management processes, BAFT’s change in legal structure may trigger lengthy approval procedures, so the organisation is actively working with members to streamline this process, emphasising continuity despite structural changes.

As Tod Burwell, President and CEO of BAFT and Trade Finance Global (TFG) Editorial Board Member, emphasised, operational continuity in the transition will be important.

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BAFT’s upcoming independence reflects broader themes reshaping international finance: as geopolitical tensions intensify and regulatory frameworks diverge, financial organisations must balance global reach with local relevance. The ability to maintain neutrality while serving diverse stakeholders becomes increasingly rare and thereby increasingly valuable.

Strategic independence doesn’t mean isolation—it means having the flexibility to build the partnerships that best serve members’ evolving needs, and also stands as an experiment in organisational agility.

The separation from ABA was conducted on amicable terms, with expectations of continued collaboration where beneficial.