HSBC is seeking to expand the trade financing solutions on offer for businesses trading on e-commerce platforms in mainland China and Hong Kong, following the successful launch of the bank’s collaboration with Dowsure Technologies.

Through the seamless integration of Dowsure’s e-commerce data solution with HSBC’s banking solutions, the partnership has benefitted those SMEs facing challenges in securing trade finance.

By streamlining the credit assessment process for Amazon merchants applying for HSBC’s trade finance using transaction data, including inventory, sales, refund records, HSBC can manage credit risks by using real time commercial data through Dowsure.

The collaboration with Dowsure forms part of HSBC’s broader strategy to help reshape the way trade finance is accessed by small businesses and respond to the growing demand for digital-first financing solutions that align with how businesses operate today.

Aditya Gahlaut, Co-Head of Global Trade Solutions, Asia Pacific, HSBC, said:

“Our collaboration with Dowsure is a pivotal step in our journey to offer seamless trade financing solutions for businesses. By embedding our financial services into e-commerce platforms, we can better serve businesses where they already operate, providing them with the liquidity they need to thrive.”

Byron Pei, Founder of Dowsure Technologies, said:

“As the pioneer of digital lending API platforms for cross-border e-commerce, through years of experience in the cross-border industry, Dowsure has acquired deep expertise in cross-border e-commerce merchants lending industry, regarding digitalization, data API, data assessment and risk control/management.

“We have a comprehensive understanding of the essential needs of SMEs involved in cross-border e-commerce. These businesses face ongoing challenges, including prolonged payment cycles and elevated financing costs, which heighten the urgency for stable and affordable funding. Our collaboration with HSBC is designed to offer SMEs quick, convenient, and secure funding solutions to address these challenges effectively.”

With the Asia Pacific region's e-commerce market value predicted to grow to over USD$28.9 trillion by 2026, HSBC aims to offer funding that matches liquidity needs in real time to help businesses optimise their cash flow and reduce the friction traditionally associated with B2B financing.

To further augment this, HSBC is collaborating with the Hong Kong Export Credit Insurance Corporation (HKECIC) to enhance the data-led trade finance proposition for e-commerce merchants based in Hong Kong. HKECIC will provide insurance coverage for the loan portfolio within its merchant financing programme.

The trade credit insurance underwritten by the HKECIC will enable HSBC to enhance its merchant financing programme and offer greater financing support to more e-commerce merchants.

In addition to the collaboration, HSBC Ventures has made a strategic investment in Dowsure. The investment is part of HSBC’s agenda to support companies in emerging and high growth industries and those that can enable further digitisation of the Bank’s SME customers.