Fine-Tuning His Place in Trade Finance

A Conversation with Abrar Ahmed

Currently with the Bank of China, London Branch, experienced industry specialist Abrar Ahmed continues to deploy and share his trade finance knowledge but also remains active on various on-line trade finance forums and Linkedin Groups, including the 50,000 members-strong “Trade Finance” group which he co-manages.

How did you first find your way into trade finance? Was it planned, accidental, or somewhere in between?

As an impressionable young person I was thrust into the world of banking in the mid-80s at the Glasgow Branch of the Bank of Credit and Commerce International, a bank which despite being embroiled in scandal at the time, nevertheless, through the foundation of its dedicated banking academy ensured new entrants were armed with knowledge to carry out their duties. In this venture I followed the family tradition of my father and uncles. The available technology then was vastly different to what it is today. Manual processes, dusty ledgers, desk calculators, manual cheque clearances, and the advent of computers for basic data input marked my entry into banking.

One exotic and mysterious area, however, piqued my interest: A myriad of strange looking documents being pored over, examined, and cross-checked by senior staff left to their own devices and not to be disturbed at any time.

When I asked what the activity related to and whether I could be considered for a transfer to this department, I was told it was far too complicated to explain and that I should gain more banking experience before considering such a move.

Like the Monty Python sketch on the radical vocational progression from Accountancy to “Lion Taming”, I subsequently entered the discipline via easy stages – initially processing export LC amendments and then progressing to LC advising. The world of document examination with its attendant knowledge and application of the rules (UCP400 at the time) and hive of activity was still very much a further benchmark in my future. 

What made you stay — and what keeps you motivated or engaged over time?

As I am sure most trade finance practitioners will attest to, once the knowledge of LCs, demand guarantees enter one’s “blood stream”, (the “lifeblood of commerce”) the initial spark of inquisitiveness ignites an enduring fascination which rarely subsides. The foundation of practice rooted in a codified rules-based system, the opportunity to exchange ideas and viewpoints across various platforms with like-minded practitioners shaping global practices also creates a dynamic environment which promotes the harnessing of advancing technology to bring about efficiency.

What part of your work still energizes or inspires you?

The products and the offshoot of related services in the sphere of trade finance is substantial. The ability to engineer effective and economical trade finance solutions to clients, while ensuring attendant financial and operational risks are mitigated, is always challenging but rewarding. There is usually no “one size fits all” response to complex trade finance needs and the ability to provide solutions through the harnessing of routine products and cross-selling other financial facilities and meeting the clients’ objectives is always immensely gratifying. 

If you could change one thing about the industry or how we work, what would it be?

A lot of sterling revolutionary work by actors is now underway globally, both in terms of using interpretative Artificial Intelligence and using digital technology to create efficiency and speed of transaction closure. Added to this, adoption of digital standards and their critical underpinning through the steering of uniform global legislation will ensure that the industry remains forward-looking and fit for purpose. Fully dispensing with paper-based processes may yet be relatively far afield on the horizon but there is a fundamental requirement to create confidence in consumers and traders that the evolution from paper documents to digital documents will create efficiencies in production and economies of scale.  

Tell us about a specific experience — a deal, project, challenge, or case — that taught you an important lesson. What was the lesson and how did it shape your approach?

I can recall a major incident which shaped my experience when in my first junior trade finance role in1985 my youthful impulsiveness led me to an error of judgment. On one occasion I endorsed a set of bills of lading with a pre-typed bill of exchange stamp of “Accepted payable on ddmmyy”, rather than the appropriate stamp of “Deliver to the order of …”. This resulted in a delay, requiring the bills of lading to be reissued although, fortunately, there was a local agent in London who was able to perform the function. Three valuable lessons were learnt that day: 1. Learn from your mistakes and never make the same mistake twice; 2. Never be proud or afraid to seek a second opinion or point of view; and 3. Always take a step back and consider the wider picture before committing to an action.

What advice would you offer to someone just starting their career in this field today?

As I learnt during my formative years, an in-depth knowledge of UCP and the ability to apply this knowledge to practical scenarios are key to advancement in this industry. I also benefited from mentors to whom I could approach and discuss technical matters, especially when a certain situation during document examination did not align with the application of a given rule. To remain inquisitive (and being prepared to sometimes challenge orthodoxy) is fundamental to keeping the interest of the subject alive. Reading widely, including the ICC Official Opinions and technical discussion on internet forums, keeping abreast of evolving practices, technology, relevant legislation, cultivating contacts and communicating with key practitioners in the industry are all essential for self-advancement. Most of all, to never allow the initial flame of enthusiasm which drew one into the industry to be extinguished.

What do you do outside of work that people might be surprised to learn?

I drifted into banking mostly by accident but I suppose through an expectation that I was following in the sound footsteps of my relatives.

Prior to entering the world of banking and more specifically, the mysterious world of trade finance, my focus had been music.

After leaving University around 1981, I formed a band with my flatmate as a keyboard player in a rock band, touring the North-East of Scotland and also the lowlands in Glasgow. While the band did not manage to obtain any lucrative recording contracts (hence my drifting into banking), our live performances attracted the attention of Scottish bands such as “Nazareth” for whom we served as an opening act on their tour. A claim to fame of some kind!