Banks make progress in digitizing trade finance
Both HSBC and JPMorgan have recently boosted their digital trade finance offerings, as the ICC Centre for Digital Trade and Innovation commenced testing of digital trade systems between Singapore and the UK.
Most countries still require all commercial trade documents to be exchanged in paper form. In the UK alone, it is estimated that eliminating paper documents could release up to £1 billion in cost savings, and several governments have started to take steps to give electronic trade documents the same legal standing as their physical counterparts.
Earlier this month, HSBC – which topped Euromoney’s trade finance survey his year – introduced a new platform in the UK and Hong Kong. HSBC Trade Solutions (HTS) allows clients to originate and manage all their trade finance products online through self-service digital interfaces.
We will continue to promote digital tools until they become the norm
“The platform is integrated with our cognitive automation capabilities as well as HSBCnet, so that data inheritance and input is minimized,” explains Vinay Mendonca, global head of trade finance products and propositions at HSBC.
“As HTS is rolled out across our network, applicants and beneficiaries that bank with us will be instantly notified of the status of letters of credit, enabling them to manage their working capital requirements more efficiently.”