HSBC deploys AI-powered Smart Checking to speed up trade finance documentation
HSBC announced on Monday, September 28, that it will use Smart Checking to process the over a million documentary trade presentations it handles each year. Smart Checking is already live in the United Kingdom, Hong Kong, and the United Arab Emirates, with plans for a global rollout.
The system uses AI to extract and classify information from trade documents, turning complex and inconsistent paperwork into structured data that can be searched and processed more easily. For clients, faster handling of documents shortens the time to payment, allowing quicker access to liquidity and working capital. Human experts review exceptions flagged by the AI, providing judgment on cases that fall outside standard patterns. The tool was created together with HSBC’s trade specialists to combine machine processing with human insight.
“Smart Checking is an ideal combination of AI and human expertise. AI handles the scale and complexity of documentary trade, while human judgement is essential to understanding exceptions and making the decisions that matter,” Thomas Elliott, HSBC’s chief operating officer, global trade solutions said.
A PYMNTS report from the previous month highlighted gaps in the working capital cycle, noting that finance often learns about economic activity only after a delay. The report said even small reductions in that latency could have a noticeable effect at scale, such as lowering days sales outstanding through faster invoice creation. Faster confirmation can let buyers approve invoices earlier and capture discounts, while better visibility of fulfilled obligations improves cash forecasting.
What we know
The new offering is designed to “transform and standardize” how trade finance documentation is processed, traced and reviewed at the bank, HSBC announced Monday (Sept. 28).
“Documentary trade at HSBC involves a highly complex, document-intensive operation involving the processing of over a million documentary presentations each year, including documentary credits and collections,” the bank said in a news release.
Smart Checking is now being used in the United Kingdom, Hong Kong, and the United Arab Emirates, with eventual plans for a global rollout, the release said.
AI extracts and classifies information from documents, “with advanced AI models turning complex and inconsistent documentation into structured data, helping information enter the process in an organized and searchable format,” HSBC added.
For clients, faster document processing can help accelerate time to payment, providing greater certainty and enabling businesses to access liquidity and working capital sooner.