HSBC taps trade data to cut SME financing friction

The bank receives an average 1.5 million CDI information feeds each month.

HSBC is expanding its use of commercial data through the Hong Kong Monetary Authority’s (HKMA) Commercial Data Interchange (CDI) to support banking services for small and medium-sized enterprises (SMEs) operating across markets.

Through Project CargoX, HSBC can access cargo and shipment data from the Port Community System (PCS) and Hong Kong International Airport (HKIA) Cargo Data Platform. 

The bank is also participating in CargoX Connect, which links CDI with a digital trade platform developed by the Shanghai Data Bureau, giving HSBC access to trade declaration data from the Yangtze River Delta region.

HSBC has completed proof-of-concepts to assess how data from these sources could support banking services for SMEs with operations in multiple markets.

The bank currently accesses an average of 1.5 million information feeds from CDI each month, according to Sammy Wong, managing director and head of business banking, commercial banking, Hong Kong, at HSBC.

“For SMEs using Hong Kong as a launchpad, growth can move faster than traditional financial information,” Wong said. “By obtaining trusted commercial data, with the appropriate consent and controls, our aim is to reduce friction in SME onboarding and financing, and to provide more relevant support as they grow.”

HSBC has also connected to Qichacha (QCC), a Chinese Mainland enterprise information provider, through CDI. 

This allows the bank to access structured corporate information to support Know Your Customer (KYC) and Know Your Buyer (KYB) checks for China-linked businesses.

The bank was also amongst the first in Hong Kong to connect with the Companies Registry through CDI. 

The connection allows HSBC to access company information such as names, business types, registered addresses and director details, which can be used to pre-fill online account applications.

HSBC said its digital lending platform also uses internal and external data to pre-fill applications for business and trade finance products and support faster credit decisions.