HSBC Malaysia launches supply chain finance platform

• The platform offers users easy and accelerated access to working capital
• Customers can transmit approved invoices and payment files to the bank anytime

HSBC Malaysia announced the launch of the HSBC Supply Chain Finance (HSCF) platform – a global tool with benefits for the bank’s customers and their trade partners through automation and enhanced usability, including the simplification of on-boarding suppliers.

The HSCF platform is an electronic platform that enables customers to upload approved invoices catering to basic file upload and Host to Host requirements.

Customers can transmit approved invoices and payment files to the bank anytime, anywhere, allowing for accelerated early payments to suppliers.

Beyond speed, the platform provides suppliers with visibility into the status of buyer-approved invoices from HSBC, even if the supplier is not a direct HSBC customer.

HSCF customers (buyers) are already seeing the benefits of increased sustainability and cost-effectiveness along their supply chains. This is especially true when the suppliers are Small and Medium Enterprises (SMEs).

The platform offers users easy and accelerated access to working capital at a cost that is typically lower than traditional sources of financing, resulting in streamlined workflows for invoice presentment and tracking.

HSCF is the latest addition to HSBC Malaysia’s suite of digital trade capabilities, which will help support the nation’s aspiration for Malaysian SMEs to make up 41% of Malaysia’s GDP by 20201. By adopting innovative trade financing services, customers can become more agile.

HSBC Malaysia country head of Commercial Banking Andrew Sill (pic), said, “At HSBC, we are always looking for new ways to leverage on technology to provide our customers with digital products and services that are simple, convenient and secure.

“The HSCF platform enables buyers to provide its suppliers access to competitive early payments, where interest rates are based on the buyer’s credit relationship with HSBC – benefitting both parties.”

Sill continues, “Additionally, this new HSCF platform demonstrates HSBC’s commitment to meet customers’ demands in our ever-evolving digital era where convenience, speed and flexibility are the new norms.”

Commenting on HSBC’s plans to embed digital platforms like HSCF into its trade strategy, Ajay Sharma, regional head of Global Trade and Receivables Finance, HSBC Asia Pacific, said: “Over the last decade, the Supply Chain Financing (SCF) market has grown dramatically and surpassed traditional trade finance.

“With this trend expected to accelerate in the coming years, we plan to capitalise on this opportunity and better serve our customers through the continued expansion of our suite of supply chain finance solutions.

“Trade finance plays a vital role in driving economic growth and business opportunities. HSBC has been successfully providing SCF solutions for over 20 years. Currently, we provide global, regional and local SCF programmes in over 25 countries.”