HSBC turns to Trade Ledger for digital receivables finance capability
HSBC says it has cut the approval process for new receivables finance (RF) customers from one to two months to under 48 hours thanks to its new technology platform – Digital RF – co-created with Trade Ledger.
The bank says customers can now transfer data directly through an API from their accounting software package “with a few clicks”, and they also have the option to upload their data through a user interface (UI).
Digital RF automatically generates a survey and risk report using a rule-based decisioning engine which is then submitted to the underwriters “within hours” of the application being received.
The client is kept updated of the status of their application and a final decision is typically received within two days, including an indicative offer.
Vinay Mendonca, chief growth officer, global trade and receivables at HSBC, says there has been “an unprecedented shift to digital” over the last three years, with 88% of trade finance transactions now originated online.
The Digital RF application process is now available in eight countries and territories including the UK, Hong Kong, India, and the US. HSBC plans its go-lives in three more countries by the end of the year.
Martin McCann, CEO of Trade Ledger, describes the partnership with HSBC as “highly productive”.
Founded in 2016 and based in the UK, Trade Ledger’s flagship Lending-as-a-Service (LaaS) platform supports secured and unsecured business lending products.
It says its clients realise, on average, a 60% origination cost reduction, a 50% reduction in dropouts and loan book growth potential of over 100% through embedded finance.
Trade Ledger is backed by venture capitalists Point72 Ventures, Foundation Capital and Hambro Perks. Court Lorenzini, founder of DocuSign, is also an investor. To date, it has raised £16.6 million.