OneConnect hopes to break information barriers and supply the government, financial institutions and foreign trade partners with a database of credible background information and credit histories of SMEs – with a focus on the automotive, agricultural and healthcare sectors. The result should be qualified firms finding it simpler to obtain trade financing.
By including the risk of a single enterprise into a risk-base spread across multiple firms which is then spread across all the links in a supply chain, there is a minimising of the overall risk – assisted by access to a broad portfolio information. When this happens, a financial reviewer has access to, and is able to evaluate, the performance and credibility of each business applying for trade finance from multiple viewpoints. To deliver this requires leveraging cutting-edge technologies. These include blockchain, artificial intelligence, and cloud computing.
OneConnect, led by the Hong Kong Monetary Authority, helped build in 2018 a blockchain trade financing platform supported by regulators. Serving as an ‘air corridor’ for financial trade, the platform connects international trade hubs in the Guangdong-Hong Kong-Macao Greater Bay Area and facilitates the flow of capital across the Asia Pacific region and the wider world.
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