Lloyds Bank is enhancing its trade financing sales by integrating artificial intelligence (AI) into its operations, enabling the automated verification of documents in accordance with industry regulations.
Trade finance transactions often involve substantial payments, frequently on an international scale, and typically require numerous participants along with extensive manual document checks. This sector encompasses the instruments and strategies that facilitate trade while safeguarding buyers and sellers against potential risks.
In collaboration with AI firm Cleareye.ai, Lloyds will harness technologies such as optical character recognition, machine learning, and natural language processing to extract essential data from both paper and digital documents.
Rogier van Lammeren, head of trade and working capital products at Lloyds Bank Commercial Banking, stated that the aim is to simplify, accelerate, and enhance the efficiency of trading. “With their AI technology, we will optimize crucial aspects of the trade finance processes that matter most to our clients,” he noted.
The technology will scrutinize documents according to the rules established by the International Chamber of Commerce while also monitoring for potential money laundering activities. This partnership with Cleareye.ai exemplifies a trend where large banks collaborate with smaller tech startups on significant projects that leverage cutting-edge technologies. As fintech continues to gain traction, banks are increasingly turning to smaller IT providers instead of developing solutions in-house or engaging with large tech firms.
Lloyds is making notable investments in digital innovations within its trade financing sector. In February 2024, the bank launched a fully digital documentary collection for trade finance, utilizing electronic Bills of Lading and digital Promissory Notes. This advancement cut the transaction completion time from 15 days to just 24 hours, significantly reducing costs as well.
In 2023, Lloyds commenced transactions under the UK’s Electronic Trade Documents Act. As the finance industry continues to explore the potential of artificial intelligence, it may lead the charge in revolutionizing business operations amid growing investments in tech across various sectors. According to an Accenture technology vision report, a survey of nearly 5,000 senior executives worldwide indicated that 96% believe the merging of the digital and physical worlds will significantly reshape business within the next decade.
