HSBC rolls out digital accounts receivable tool

HSBC has announced the launch of its Digital Accounts Receivable Tool (HSBC DART) to corporate clients in India.

DART uses Identitii’s tokenisation technology to simplify and automate the flow of information between HSBC corporate clients and their customers in the receivables process. It aims to improve the supply chain, cut down on manual tasks and enhance working capital efficiency for sellers. The solution is available online or via an app from Google Play.

Essentially, tokenization protects bank account numbers and credit card numbers in a secure, virtual vault that can be transmitted across wireless networks without adding unnecessary risk. For tokenization to work, a payment gateway is needed to store sensitive data that allow for the random token to be generated.

HSBC DART integrates with HSBC’s existing receivables technology infrastructure. It uses a unique information layer to securely communicate information associated with an invoice or payment. This streamlines the client experience and automates the accounts receivable process for HSBC’s corporate clients and their network of buyers, by reducing their dependence on manual processes and in turn enhancing working capital efficiency.

Secure exchange of information

The solution was developed by Identitii for the Global Liquidity and Cash Management (GLCM) business of global tier one banking group, HSBC, under phase one of the Company’s existing 2017 Global Framework Agreement.

HSBC also plans to launch HSBC DART in new markets in Asia to support its corporate clients by delivering a secured digital information exchange channel and ecosystem connecting sellers and buyers. Under phase two of the project, Identitii is delivering new functionality supporting the roll out of HSBC DART into new geographies, generating additional revenue for Identitii under this phase.

Commenting on HSBC DART, 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.”

Commenting on the development of DART, Nick Armstrong, CEO, Identitii said: “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.”

By 2020, researchers at Capgemini say that digital payment platforms will be responsible for processing an eye-watering 726 billion transactions annually – and payments via apps are expected to reach an annual $318.8bn within the next two years. digital payments now represent almost $3trn worth of transactions per year, via nearly 3 billion customers, clients and businesses. The digital payments landscape is only going to increase – and the world is inching slowly closer to a truly cashless society.