HSBC is seeking to expand trade financing solution offerings for businesses trading on e-commerce platforms in mainland China and Hong Kong. The announcement expands the bank’s collaboration with Dowsure Technologies, a cross-border e-commerce Application Programming Interface (API) platform based in China.
The collaboration leverages HSBC’s banking network and solutions while integrating Dowsure’s data-oriented solutions for e-commerce. In addition to the collaboration, HSBC Ventures has made a strategic investment in Dowsure.
The collaboration with Dowsure is for the most part in response to the growing demand for digital-first financing solutions which align with modern business operations.
Aditya Gahlaut, Co-Head of Global Trade Solutions for Asia Pacific at HSBC, said, “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.”
The Asia Pacific’s e-commerce market is predicted to grow in value by over $28.9 trillion by 2026. Meeting liquidity needs in real-time and lubricating business-to-business (B2B) funding would help to optimise cash flow.
Byron Pei, Founder of Dowsure, said, “SMEs face ongoing challenges, including prolonged payment cycles and elevated financing costs, which heighten the urgency for stable and affordable funding.” In this way, Dowsure and HSBC seek to further improve liquidity for small- and medium-sized enterprises (SMEs).
Further, HSBC is collaborating with the Hong Kong Export Credit Insurance Corporation (HKECIC) for the loan portfolio within its merchant financing program. HKECIC will underwrite trade credit insurance coverage. This should optimise financing support for e-commerce merchants.
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.
The move comes shortly after HSBC announced that it will separate its UK and Hong Kong businesses into two of four standalone units, pushing the bank’s Asia business into uncertain territory.
