According to the seasoned credit management expert Arnold Geelhoed, 3D printing, scanning and reversed engineering will change the landscape of credit risk management amongst many other things.

Supply Chain contraction brings new challenges for credit risk management.  Major shifts in industry risk, and payment methods are to be expected as well as changes in the risks associated with certain countries.   For bankers, the biggest nightmare ever will start as current fundaments of risk will be turned on their heads.  For example what should you do in case a customer manufacturing packing materials in Western Europe would ask you for a new loan for 15 years, and wants to expand his production line knowing that the packaging industry may be affected negatively when 3D printing takes really off?   Major shifts in customer segmentation (from agents/wholesalers directly to end users creating new types of credit risks and payment methods) are to be expected.  This will impact physical distribution eliminating warehousing and distributors as suppliers of raw material components serve end users directly.

The specter of fraud:  It could create a wave of new crime and it will impact values of respect, honesty and integrity.   Pirated brand products: 3D printed will be difficult to distinguish the fake from the original product.  Scan an object obtained from a friend and reprint it without paying the copyright.  Print an untraceable gun hard to detect by security portals.  The list is almost endless.

The 3D Print Revolution:  Large scale customization in design and manufacturing.  The likely winners:  3D printer makers will benefit from a potential US$3bn – 10bn market by 2020.  The mining industry may be entering the fray by printing large parts for end users.  Each month the list is growing:  Iron, silver, stainless steel, aluminum etc.

Countries likely to suffer:  China, Taiwan, Vietnam, Cambodia, Malaysia, Indonesia, Philippines, Bangladesh, India, Pakistan, Mexico, Brazil (excluding mining), Egypt.

As the 3D print revolution progresses, other surprises will be inevitable.

To read the full report click on this link: 3D printing and credit risk management

Arnold-GeelhoedArnold Geelhoed is Credit Director EMEA at Elsevier BV in Amsterdam, The Netherlands.  He received support from his whole Elsevier Credit Control team but he received extensive support from Galal Lutfi and Julie Lane, both working as Credit Controller in his team, writing this article. Elsevier is the largest publisher in the Health Science and Science & Technology area. This article is written on a personal title and has no relation with the publications Elsevier is publishing.  Arnold is BIIA’s newest contributing editor on the subject of credit risk management.