Technological Innovations in Supply Chain Financing: Challenges and Opportunities for Traditional Banking sectors

The fast growth of technological developments has greatly radically altered supplychain financing (SCF), introducing innovative tools such as blockchain, artificial intelligence (AI),the Internet of Things (IoT) and fintech-driven platforms in all sectors of Bangladesh. Thesetechnologies have transformed the way financial flows are monitored across supply chains,improving transparency, efficiency and financing accessibility for small and medium-sized firms(SMEs). However, the introduction of these technologies presents both strategic and competitivebarriers to traditional banking sectors. This article examines the nature of these advances, focusingon the opportunity for local banks to digitize SCF procedures, improve risk management andwiden client engagement, while also addressing the institutional, legal and technologicaldifficulties to adjust to this new environment. The study illuminates clarity on how traditionalbanks may stay competitive and pertinent by adopting digital evolution, developing fintechcollaborations and restructuring their SCF models. The study closes with strategic advice for bankson how to manage the growing SCF environment and use innovation as a driver of futuredevelopment.