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GSBN recruits banks to form advisory group to transform global trade

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Hong Kong born consortium Global Shipping Business Network (GSBN) has recently collaborated with a number of global banks to form their Trade Finance Advisory Group.

GSBN has teamed up with the Bank of China (BOCHK), DBS Bank (DBS) and The Hong Kong and Shanghai Banking Corporation Limited (HSBC) to form a new coalition to look into technical, legal and regulatory frameworks needed to break the siloes between the global supply chain and financial institutions.

The group also aim to test digital solutions such as electronic Bill of Lading and other supply chain data to improve the financing process for banks.

The idea behind the group is to bridge the financing gap by helping partner institutions improve their existing processes by leveraging trusted digital data from supply chains. According to the International Chamber of Commerce (ICC), there is an estimated trade finance gap of $1.5 trillion, project to grow to $2.5 trillion by 2025, which the coalition aims to fill.

“The COVID-19 pandemic has demonstrated many areas where paper can be eliminated in favor of more efficient, trusted digital systems,” said GSBN CEO, Bertrand Chen.

“Given the symbiotic relationship between the shipping sector and finance, we must explore how we can connect with, and enhance banking processes to bridge the $1.5 trillion finance gap. Breaking siloes between supply chains and trade finance is critical part to unlocking new value in global trade, which is why we’re delighted to have three financial leaders join our mission.”

Deputy General Manager of Transaction of Banking Department from BOCHK, James Ho, added, “BOCHK is pleased to deepen our collaboration with GSBN by becoming a key member of the Trade Finance Advisory Group.

“We have been actively supporting the cooperation between the finance and the shipping industries to facilitate trade and crate value for all stakeholders in the supply chain. Early this year we became the first financial institution to partner with GSBN to accelerate digital transformation of the shipping industry.”

This announcement follows on from HSBC’s recent growth. In August 2021, the network announced they are rolling out Cargo Release, a paperless transparent solution connecting everyone involved at the port of import. It is currently being rolled out across Southeast Asia by Hutchinson Ports and PSA International, to cover major ports across the region.

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