HSBC unveils digital trade finance solution in Hong Kong, Singapore, UAE

By Gloria Mathias

HSBC has joined forces with Cainiao Network Technology, Alibaba Group’s smart logistics platform, to offer an innovative digital trade finance solution for online merchants.

The new scheme will use real-time logistics information for credit assessment, making loans more accessible and matching the needs of new economy enterprises. The innovative solution is available to Hong Kong merchants selling on the TMall Global e-marketplace.

With the borrower’s authorisation, HSBC will access Cainiao Network Supply Chain Finance’s integrated information about the merchant, including business background, primary brands, Cainiao Network ratings, real-time inventory information, and operation status, to conduct a credit assessment.

Merchants are not required to provide collateral or financial documents. It can take as little as seven working days from account application to approval for loans of up to $500,000. From now until the end of June 2020, successful applicants can enjoy a discount of 1% interest rate per annum.

Jeanny Ip, Head of Global Trade and Receivables Finance, Hong Kong and Macau, HSBC, said, “We are pleased to partner with Cainiao Network to support new economy enterprises by pioneering the use of digital data to simplify the trade finance approval process and support business transformation. 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.”

Zhao Wei, General Manager of Cainiao Network Supply Chain Finance, said, “As merchants go through a challenging period due to the Covid-19 outbreak, Cainiao Network is dedicated to driving the recovery of retail business and assisting businesses to resume normal operations by using our expertise in smart supply chains. Through this digital financing solution, more merchants can easily obtain rapid loans. We will continue to deepen our cooperation with HSBC to help our merchants and consumers through this difficult time.”