HSBC GTS and TradePay aim to support Indonesia’s thriving digital economy – Economy

or more than 155 years, HSBC has been financing trade in some of the most vibrant markets globally. The bank’s rich trade history is now a modern-day strength as it supports businesses to grow globally, make new connections, expand into new markets, and navigate an ever-changing landscape.

This year, HSBC unveiled Global Trade Solutions (GTS) as the new face of its trade finance operations and HSBC TradePay, an innovative digital invoice and payments solution, in a bid to support Indonesia’s flourishing digital economy.

We talked to Delia Melissa, Country Head of HSBC Global Trade Solutions for Indonesia, to gain her insights on how HSBC could provide breakthrough solutions for businesspeople, and exporters alike in terms of business expansion, trade finance and payment, enabling them to focus more on their business growth.

Formerly called Global Trade Receivables Finance (GTRF), GTS aims to help customers do cross border trades smoothly, safely, and conveniently, while at the same time serves as global connectors that will help customers know where, how, and with whom they want to trade.

“We have been in the business of trade solutions globally and been financing trade in some of the most vibrant markets globally for the past 155 years. In Indonesia, we have just celebrated our 140^th anniversary and, along the line, HSBC is in the forefront of trade finance business,” said Delia, who has been working at HSBC for nearly 18 years.

Finding the right business partners for trade and having access to financing, to pursuing supply chain resilience, including funding for decarbonization and transition to net-zero, are among tough challenges for many countries, including Indonesia.

Every Monday

With exclusive interviews and in-depth coverage of the region’s most pressing business issues, “Prospects” is the go-to source for staying ahead of the curve in Indonesia’s rapidly evolving business landscape.

for signing up our newsletter!

Please check your email for your newsletter subscription.

View More Newsletter

Meanwhile, doing business and making transactions involving cross-border partners in today’s fast-paced, technology driven world can also be demanding, which may disrupt company growth. 

In response to the aforementioned challenges, Delia said that banks with strong international network, like HSBC, can help corporate clients eager to grow their business and expand their operation overseas.

“With our extensive network that covers 90% of global trade, we are helping clients to connect each other, finding the right partners as well as managing the risk in the businesses, but also to have access to financing, a highly important component for their business to grow and go forward, especially in ASEAN,” Delia pointed out.

Globally, HSBC are connecting 1.3 million businesses across 60 markets, and in 2023, HSBC facilitated $850 billion of trade.

Facilitating trade in a highly digitized world

A report by Bain & Company, Southeast Asia’s digital economy is among the world’s fastest-growing – worth $218 billion as of 2023 and expected to reach $600 billion by the end of this decade – with a compound annual growth rate of 16 percent.

Natural resources-rich Indonesia has emerged as a major digital economy player in the region, holding over 40 percent of the ASEAN market share. The rapid growth of e-commerce sector in Indonesia, partly driven by the internet penetration, has spurred digital adoption among consumers and corporate clients. With more than 210 million internet users, Indonesia is one of the countries with the highest number of internet users in the world. As of January 2023, the country ranked fourth after China, India, and the United States.

“E-commerce provides a lot of ease and access and we must follow the trend,” Delia said.

In 2023, Indonesia e-commerce sector saw transaction reached totalling Rp 453.75 trillion or about US$29 billion and the sector will continue show an upward trend in the future. “That’s why, we want to equipe the customers with an innovative digital platform,” she remarked.

According to a report, digital transaction in Indonesia can reach $360 billion by 2030, driven by the rapid expansion of online services and a widespread acceptance of digital payments, bolstered by advancements in financial technology.

Delia further revealed that with the highly promising ASEAN digital economy, HSBC is focusing on ASEAN, with Global Trade Solution (GTS), TradePay, an industry first solution, and other trade solutions offered to help clients to grow their business.

TradePay – a digital solution for a seamless cross border trade

HSBC has launched innovative solution, TradePay, which was formerly called Trade Working Capital, to support the surge in digital payments and financial technology adoption among its corporate clients.

HSBC TradePay is a digital solution that can be accessed through HBSCNet, a digital platform for HSBC’s corporate customers, that allows users to access working capital and the digital payment under one platform

It connects digital invoice and financing options allowing users to pay their suppliers faster, easier and more convenient – enabling business owners to focus more on business growth.

“Using HSBC TradePay to pay your suppliers is very convenient as you don’t need to submit transactional documents to process your working capital loan, you get speedy access to funds when you need it,” Delia said.

“It is easy because with just a few taps, you can choose the exact amount needed to pay your suppliers.; while it is also very convenient as everything in one place, meaning that finance, financing, and payment are fully integrated into HSBCnet, a single platform that gives you total visibility of your finances – anytime, anywhere,” she pointed out.

“It’s seamless, on-demand service aligns cash outflows with your production schedule, ensuring your business’s smooth operation to meet the demands of new orders,” she added. 

Delia advised that companies who aspires to “go-international” would benefit from banking with a bank who is a leader in trade finance with extensive global footprint.

“With digitisation becoming a norm for doing business, companies should invest in digital solution that reduces paperwork, streamline processes, and improve efficiency and accuracy – allowing executives to focus more on your business growth,” she said.

 “In addition to supply chain resilience, having digital platform that improve efficiency in your trade and working capital processes is also critical,” she said, referring to TradePay.

In addition to TradePay, HSBC also has other trade solutions to help grow your business. These include HSBC’s Documentary Credit (DC), also known as Letters of Credit (LC). LC is used extensively in financing of international trade as it offers assurance that both the parties will fulfil their obligations in the trade.

“LCs provide increased protection against the risks associated with cross-border transactions. They also ensure timely payment and facilitate easier access to working capital finance,” Delia said.

HSBC is committed to help you navigate the complexities of business expansion, working capital or trade in ASEAN, particularly in Indonesia. through solutions from HSBC’s Global Trade Solutions, such as TradePay and others.

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}