HSBC Rolls Out AI Tool to Speed Up Trade Finance Document Processing

The bank introduced Smart Checking this week, an artificial intelligence platform built to streamline how trade finance documents are handled, tracked, and reviewed. The system aims to standardise operations across a process that currently involves more than a million documentary presentations each year.

Each presentation can run to hundreds of pages and contain a wide mix of structured and unstructured data requiring extraction and verification. Documentary credit checks often include bespoke conditions tied to individual transactions and commercial contracts, meaning requirements vary significantly from deal to deal.

Processing times can stretch to several hours per transaction, creating operational bottlenecks during peak periods. The bank developed the tool to address these pressures by combining AI capabilities with trade finance expertise.

Smart Checking uses AI to extract and classify information from submitted documents. Advanced models convert complex and inconsistent paperwork into structured, searchable data, organising information as it enters the workflow.

The system is designed to handle the scale and variability inherent in documentary trade, while human specialists remain responsible for interpreting exceptions and making final decisions on edge cases.

By co-creating the solution with our trade experts, we are building technology that boosts efficiency, practicality and innovation, said Thomas Elliott, chief operating officer for global trade solutions at HSBC.

Faster document processing translates to quicker payment cycles for clients. The acceleration gives businesses earlier access to liquidity and working capital, improving cash flow certainty.

The platform is currently live in the United Kingdom, Hong Kong, and the United Arab Emirates. HSBC plans to expand the tool globally in subsequent phases.

The working capital cycle traditionally features several delays between when economic activity occurs and when financial systems have sufficient information to act. Even small reductions in that lag can have meaningful effects at scale.

Accelerating invoice creation can lower days sales outstanding. Faster confirmation processes allow buyers to approve invoices earlier, potentially capturing early payment discounts. More precise visibility into when commercial obligations are met improves cash forecasting across supply chains.