The Hong Kong Export Credit Insurance Corporation (ECIC) has announced the launch of its first trade credit insurance cover based on SCOR Smart Credit, an alternative data underwriting tool developed by SCOR Reinsurance Co. (Asia) Ltd. (SCOR).
This new product aims to support cross-border e-commerce trade by offering protection for trade loans granted by FundPark Ltd. (FundPark), a Hong Kong-registered fintech company, to Hong Kong merchants. The initiative seeks to facilitate SMEs’ access to trade financing and encourage their development in cross-border e-commerce trade.
SCOR Smart Credit is an applied data-driven underwriting engine that analyzes data from various sources using an underwriting algorithm developed by SCOR. This innovative approach allows for faster risk assessment compared to traditional methods, enhancing overall portfolio quality through efficiency, effectiveness, and consistency.
“Cross-border e-commerce trade has seen tremendous growth worldwide in recent years. ECIC is glad to collaborate with SCOR to offer an innovative e-commerce trade insurance-backed financing solution. This initiative, based on merchants’ alternative performance and operating data on specific e-commerce platforms, will help secure financing for e-commerce merchants and support the further development of cross-border e-commerce trade,”
Terence Chiu, Commissioner of ECIC, said about the launch of the trade credit insurance.
“This first-of-its-kind underwriting and reinsurance arrangement is a testament to the strength of FundPark’s proprietary risk management platform and use of AI technology. We are delighted to innovate with ECIC and SCOR to bring a new collaborative solution to market, facilitating the provision of working capital to more merchants who may find it difficult to acquire financing from traditional financial institutions,”
added Anson Suen, CEO & Co-founder of FundPark.
Established in 1966, the government-backed ECIC can offer up to HK$80 billion (US$10.26 billion) of insurance cover to over 100,000 local exporters against risks posed by payment defaults or delays by their overseas clients. This new policy is structured differently, with the ECIC offering credit insurance cover for the e-commerce loans extended by FundPark.
Hong Kong-based FundPark, co-founded by Anson Suen in 2016, provides loans that lack typical collateral, such as property, but are secured by SMEs’ underlying cash flows, inventory, or receivables.
The company relies on an AI-driven credit model to assess borrowers. To obtain data from these companies, FundPark has teamed up with major e-commerce platforms such as Amazon, eBay, and Tmall, as well as logistics firms.
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