The Bank of East Asia (BEA) has announced a collaboration with PingAn OneConnect Credit Reference Services Agency (HK) Limited (PAOCCRA) to enhance the credit evaluation process for SMEs in the trade sector.

This initiative leverages the Commercial Data Interchange (CDI) system provided by the Hong Kong Monetary Authority (HKMA), utilising electronic customs declaration data as alternative data for credit approval.

By obtaining loan applicants’ data from Tradelink Electronic Commerce Limited with consent, PAOCCRA will share this information with BEA through CDI, streamlining the loan evaluation and approval process.

This method facilitates quicker access to financing for SMEs, requiring no financial statements for loan applications under the new BEA Enterprise Easy Fund Series.

The BEA Enterprise Easy Fund offers loans up to HK$2 million for tenors of 24 months without requiring collaterals. Approval processes can be completed in as little as three working days, marking a significant improvement in efficiency and accessibility for SMEs seeking financial support.

“By utilising alternative data, CDI enables banks to achieve greater precision in risk assessment and enhance loan approval efficiency, while also playing a crucial role in promoting financial inclusion by facilitating access to funds for SMEs. BEA will continue to leverage fintech and next-generation infrastructure as well as expand our partnerships to further streamline our processes, including loan applications and account opening, to benefit even more SMEs,”

said Kelvin Au, General Manager and Head of Wholesale Banking Division of The Bank of East Asia.

Featured image credit: Edited from Freepik