HSBC, a British multinational bank and financial services holding company with total assets of over $ 2.5 trillion, has partnered with Cainiao, a China-based logistics company, to provide trade finance loans to traders faster through Ali Baba Tmall platform in Hong Kong.
HSBC would use third-party data on customer history, real-time inventory and operational status, which has been provided by Cainiao, to aid in the loan approval process. Applicants will not have to provide any guarantees or financial statements to qualify for loans, which is notably a first for the Hong Kong banking institution.
The package, which aims to approve and deliver trade finance loans of $ 500,000 (maximum) within one week, will be offered to 1,800 eligible vendors who use Alibaba’s Tmall portal.
The lender will consider extending this service to other providers of digital commerce solutions, according to to a report published by the Morning Message from South China (SCMP).
In statements shared with the SCMP, Jeanny Ip, head of global trade and debt finance, Hong Kong and Macau, HSBC, noted.
“We see big data and other emerging technologies as a huge opportunity to deliver innovative solutions that make financing easier for our clients.”
HSBC’s collaboration with Cainiao could support new businesses by using big data analytics to simplify and speed up the loan approval process, Jeanny said.
Louis Tse Ming-kwong, Managing Director of Venture Capital Asset Management at HSBC, said:
“HSBC is the first local lender to launch such a partnership with a technology company, to use big data to approve trade finance loans. He will have the advantage of the first come. “
“Eight virtual banks are starting their activities this year. The competition will be fierce. HSBC and other traditional lenders will need to offer more digital banking products and services to compete with a younger generation of tech-savvy customers. “