From Pymnts · PYMNTS · · 1m 10s
HSBC Launches AI Tool for Trade Finance
HSBC's new AI system speeds up trade finance processing globally.
In brief
HSBC's new AI system speeds up trade finance processing globally. HSBC deployed AI to streamline trade finance operations, reducing document processing time and improving liquidity access for businesses. Originally reported by Pymnts.
HSBC Unveils Smart Checking
HSBC has unveiled Smart Checking, an AI-powered tool designed to transform and standardize trade finance documentation processing.
“Documentary trade at HSBC involves a highly complex, document-intensive operation involving the processing of over a million documentary presentations each year, including documentary credits and collections”
Trade Finance Complexity
Each trade finance transaction requires processing hundreds of pages of structured and unstructured data points for review.
“Each presentation can extend into hundreds of pages, with a large range of structured and unstructured data points requiring extraction for further review”
AI Processing Benefits
AI extracts and classifies information from documents, turning complex documentation into structured data for organized and searchable formats.
“Advanced AI models turn complex and inconsistent documentation into structured data, helping information enter the process in an organized and searchable format”
Faster Payment Access
Faster document processing accelerates time to payment, providing greater certainty and enabling businesses to access liquidity and working capital sooner.
“For clients, faster document processing can help accelerate time to payment, providing greater certainty and enabling businesses to access liquidity and working capital sooner”
Global Rollout Plan
Smart Checking is currently used in the United Kingdom, Hong Kong, and the United Arab Emirates with plans for a global rollout.
“Smart Checking is now being used in the United Kingdom, Hong Kong, and the United Arab Emirates, with eventual plans for a global rollout”
Working Capital Impact
Reducing latency in the working capital cycle can lower days sales outstanding and improve cash forecasting through faster invoice processing.
“Even modest reductions in that latency could matter at scale. Accelerating invoice creation can lower days sales outstanding”
The bottom line
HSBC deployed AI to streamline trade finance operations, reducing document processing time and improving liquidity access for businesses.
