HSBC has introduced an AI-powered solution that automates portions of its trade finance document processing operations, combining artificial intelligence with human oversight to accelerate document reviews and improve consistency.
The solution, called Smart Checking, uses AI to extract and classify information from trade documents, converting structured and unstructured information into data that can be searched and analyzed. An AI reasoning engine supported by a knowledge graph then interprets the information and performs credit checks based on the documentation.
London-based HSBC processes more than a million documentary presentations each year, including documentary credits and collections. Individual presentations can contain hundreds of pages and require hours of processing because documentation and checking requirements vary across transactions.
Smart Checking uses confidence-based workflows to determine which tasks can be automated and which require human intervention.
“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,” says Thomas Elliott, chief operating officer of global trade solutions at HSBC.
According to the bank, automating document processing could shorten payment timelines, providing businesses with earlier access to liquidity and working capital.
Smart Checking is currently being used in the United Kingdom, Hong Kong and the United Arab Emirates. HSBC plans to expand the solution globally over time.