HSBC Launches ‘Fast-Track’ Digital Trade Finance Demand Guarantee To Help Customers Trade Internationally

HSBC has launched a new ‘fast-track’ digital trade finance demand guarantee to help customers trade internationally in a “more seamless, secure and efficient” way.

The solution allows customers to issue digitally processed guarantees that can be issued to a beneficiary in real time, reducing issuance times from a typical three to four days, down to potentially minutes, marking a significant milestone for the banking industry.

The ‘fast-track’ digitally processed trade finance guarantee will be available to customers via HSBC Trade Solutions, set up to digitise and simplify customer journeys, which is being deployed globally in 2024 and 2025.

The first transactions of this kind took place this month, with HSBC issuing a tender bond for the consultancy and accounting firm KPMG in Qatar and an advance payment guarantee for UK international corporate Russell Finex Ltd.

Abdul Hakeem Mostafawi, CEO, HSBC Qatar said,

“HSBC Qatar is investing in the digital agenda of the country and offering market-leading solutions for trade transactions that are seamless and even more secure. Our global expertise combined with extensive knowledge of the local market make us the preferred international financial partner for our customers.”

Vivek Ramachandran, Global Head (Global Trade and Receivables Finance) at HSBC said: “The digitisation of world trade is a driver of economic success. At HSBC, we are bringing together our extensive expertise and innovative technology solutions to make paperless trade a reality for our customers.”

Wassim Maksoud, Director – CFO, KPMG Qatar said, “Digital Transformation, innovation and Technology solutions are key items on KPMG’s agenda. Partnering with HSBC Qatar to process the first STP (Straight Through Processing) bank guarantee issuance globally, with zero human intervention, and in a matter of minutes, makes a significant leap in the digitisation of trade finance.”

Demand guarantees and documentary trade solutions support businesses trading across the world by mitigating risk and providing confidence to both buyers and suppliers.

Digitally processed guarantees are one of several solutions that HSBC is delivering to facilitate the move towards the digitisation of trade, and support clients in preparation for a digital future.