HSBC Engaging With BNM to Push Blockchain Trade Finance Platform
HSBC Malaysia is in regular engagement with Malaysian regulators, particularly Bank Negara Malaysia (BNM), in pushing blockchain-based trade finance platform.
Regional head of global trade and receivables finance, Ajay Sharma, said BNM was receptive with the platform and blockchain technology and was interested to find out more from HSBC as it had successfully performed a transaction using the technology.
In May 2018, HSBC and ING Bank successfully executed a live trade finance transaction for international food and agriculture conglomerate Cargill using the Corda scalable blockchain platform.
The transaction involved a bulk of shipment of soybeans from Argentina to Malaysia, involving Cargill’s Geneva trading arm and a Singapore subsidiary.
Ajay said HSBC was committed to driving digital innovation to meet customers’ changing demands, as shown in 2018 when it demonstrated that blockchain as a solution for trade digitisation was operationally and commercially viable.
“We urge more banks to embrace the platform, to reap economies of scale. For the efficiency of the new technology, the platform also needs to be a common platform where everyone could participate,” he told reporters after the launch of HSBCnet Trade Transaction Tracker here today.
HSBCnet Trade Transaction Tracker is pre-logon service in the HSBCnet mobile app that allows customers to track the real-time status of trade transactions quicker and easier.
HSBC Malaysia country head of commercial banking, Andrew Sill, said the application had gone live in 24 countries and received favourable feedback.
“The new application is an innovative mobile tool that allows businesses to better manage their global trade flows.
“Entrepreneurs and managers use mobile phones to run international businesses today, and we know how important it is for them to track their transactions along the supply chain in order to maintain their competitiveness,” he said.
Sill added that HSBC would also continue to work closely with the Ministry of International Trade and Industry in helping Malaysia to boost its exports, particularly with new emerging products and technology in trade finance.