HSBC Group, British multinational banking and financial services holding company, has announced the launch of its Digital Accounts Receivable Tool (HSBC DART) using Identitii’s innovative tokenization technology, to its corporate clients in India. Now Indian customers can use the tool’s benefits to automate the accounts receivable process in HSBC’s Global Liquidity and Cash Management (GLCM) business.
HSBC's new Digital Accounts Receivable Tool (DART) was built using Identitii's innovative tokenisation technology. HSBC DART enables secure communication of information associated with an invoice or payment to enhance working capital efficiency. https://t.co/kjZdkAGCs8 pic.twitter.com/TfTSyp1jR8
— identitii (@identitii) June 18, 2019
According to the announcement, HSBC DART is based on innovative tokenization technology of Identitii, an Australian FinTech that enables the secure overlay of transaction level detail on top of financial messages using a private blockchain.
The tool uses a unique information layer and securely communicates information connected with an invoice or payment, which makes the accounts receivable process for HSBC’s corporate clients automated, reducing their dependence on manual processes and enhancing working capital efficiency.
The initiative is part of HSBC’s Global Liquidity and Cash Management (GLCM) business under the company’s existing 2017 Global Framework Agreement.
Nicholas Soo, head of Payment Products, Asia-Pacific, HSBC, said:
“HSBC has a commitment to innovation and to finding the best ways to constantly enhance the service we provide to our clients. Developing HSBC DART with Identitii has helped us solve a key pain point in receivables by digitising the client experience and creating an ecosystem where our clients and their customers connect to improve efficiency through the secure exchange of information.”
Nick Armstrong, Identitii CEO, commented on the initiative:
“HSBC’s DART is an industry first. It is the culmination of innovative work undertaken by both Identitii and HSBC to solve a particular challenge in how corporates and banks communicate and reconcile financial messages. HSBC DART improves the entire accounts receivables process for corporate clients by boosting working capital efficiency and providing increased data integrity and security.”
“We look forward to providing updates as this product is expanded into new markets.”
As the announcement states, HSBC is planning to expand HSBC DART in Asian markets and support its corporate clients by delivering a secured digital information exchange channel and ecosystem connecting sellers and buyers.
Being the 7th largest bank in the world and the largest in Europe, HSBC owns total assets of US$2.558 trillion. The company is doing a lot in terms of boosting the adoption of blockchain technology and encouraging crypto enthusiasts. In May of last year, the banking giant completed the first in history speedy commercial trade finance transaction using blockchain technology. The transaction dealt with a shipment of soybeans transported from Argentina to Malaysia, and at that time, it was a real milestone in the financial system.
In January 2019, HSBC announced they had processed more than 3 million foreign exchange transactions using blockchain technology. The total worth of the transactions made more than $250 billion.