New digital trade finance offering launched by HSBC
(23 March 2020 – Hong Kong) HSBC has announced its new digital trade finance solution for online merchants. The offering will grant Hong Kong merchants who are selling on the TMall Global e-marketplace access to trade financing loans of up to $500,000 in seven working days from account application to approval.
The bank is launching the solution with Cainiao Network Technology, a logistics arm of Alibaba Group.
Merchants are not required to provide collateral or financial documents to secure the loan. Instead, they must agree to let Cainiao communicate comprehensive information about themselves to HSBC for credit assessment, including business background, primary brands, Cainiao Network ratings, real-time inventory information and operation status.
This is the first time HSBC uses third-party data to approve trade finance loans. It is also the first time a local lender working with a technology company to drive trade finance lending by using big data.
“We see big data and other emerging technologies as a huge opportunity to offer innovative solutions that make financing easier for our customers” stated HSBC Hong Kong and Macau Head of Global Trade and Receivables Finance, Jeanny Ip.
“There is a clear need to match the rapid evolution of the market with new solutions, and we believe the new scheme will provide adequate support to online merchants” she added.
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