Money & Banking

HDFC Bank launches mobile app for trade finance transactions

Beena Parmar Mumbai | Updated on January 24, 2018

Bhavesh Zaveri

To facilitate authorisation of letter of credit, bill processing and bank guarantee, among others

HDFC Bank will provide trade finance transactions on the mobile phone for wholesale banking clients. The country’s second largest private sector bank hopes to push its wholesale business growth in sync with the economy and has launched the ‘Trade Finance on Mobile’ application.

The app provides end-to-end digitisation of trade finance transactions, including the last mile authorisation of these transactions.

“The on-the-go executives and senior officials, who are largely on-field and travelling, can authorise as and where they are present. In 2014, we started offering payment products such as RTGS, NEFT and fund transfer on the mobile for the wholesale banking clients. This is the first time in the industry that trade finance has moved on mobile,” said Bhavesh Zaveri, Country head – Operations, Cash management products, HDFC Bank.

The product offering involves facilitating mobile authorisation of letter of credit, bill processing, bank guarantees, buyer’s credit and pre-and post shipment transactions, which are online and real time.

“It is a unique offering that gives the ability to navigate and provide flexibility to the executives to validate it and get the process going on a real-time basis. So, it reduces the time from half a day or so to an hour or so…We expect the mobile transactions to jump into thousands in the next three-six,” Zaveri added. Broadly, the bank’s wholesale segment includes funding, trade financing (including LC, ECB, buyer’s credit) and domestic cash management.

In the financial year 2014-15, HDFC Bank's trade service data showed an export value of ₹1,64,028 crore with 9 per cent market share and import value of ₹2,28,412 crore with 8 per cent, the bank said.

At present, the ratio of the customer revenue mix from wholesale to retail is at 42:58. The wholesale banking business has been growing at an average of about 12 per cent per annum.

In the month of March 2015, HDFC Bank recorded transactions worth ₹6,031 crore on the mobile banking platform, while for the entire banking system the transaction value stood at ₹16,914 crore, according to the RBI data.

Currently, the number of transactions a year through trade finance is about 2 million and the average wholesale banking business has been growing at about 10-12 per cent.

Published on June 23, 2015

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