HSBC and Siemens have carried out the first fully digital, end-to-end indirect guarantee, marking a significant development in the ongoing digitalisation of trade finance in Europe.
Completed jointly by Siemens AG, HSBC Germany and HSBC France, on behalf of Siemens SA Spain, the transaction was processed via Guarantee Vault, the digital infrastructure operated by German fintech company Digital Vault Services (DVS).
It marks the first time an indirect guarantee has been completely digital, from issuance throughout the entire lifecycle, as well as across multiple jurisdictions.
The local guarantee was electronically issued by HSBC France and secured through a counter-guarantee by HSBC Düsseldorf on behalf of Siemens’ Spanish subsidiary. The transaction went beyond previous digital guarantee cases in that it covered an indirect guarantee structure – including counter-guarantee and local issuance – handled completely digitally, without the need for any physical documentation at any stage.
All parties, including the Spanish beneficiary, operated in real time on a shared digital record, also known as a ‘single source of truth’, which improved traceability, compliance and auditability.
The full lifecycle, including amendments and claims, was supported digitally through DVS’s Guarantee Vault.
The move represents “a significant step forward for trade finance digitisation”, according to DVS, and a key advance toward the broader adoption of digital guarantees in European and international markets.
“We’re pleased to support Siemens in this important step,” said HSBC’s senior sales lead, global banking, Olaf Haferkorn.
“By issuing locally in Spain through HSBC’s international network and using a secure digital infrastructure, we’ve demonstrated how cross-border trade finance can become faster, more transparent, and better aligned with our clients’ operational needs.”
Through this process, Siemens said it benefitted from shorter processing times for international commitments, increased operational resilience and reduced risk, enhanced traceability and compliance throughout the lifecycle, and more efficient procedures for international beneficiaries and business partners.
“At Siemens, we leverage innovative technologies to continually enhance the reliability and responsiveness of our financial processes,” said Gerhard Heubeck, global head of trade finance advisory at Siemens AG.
“The fully electronic execution of this guarantee enables us to replace paper-based workflows with modern, efficient processes, ensuring smoother and faster handling at the highest quality standards.”
Earlier this year, GTR sat down with Tom Elliott, managing director and chief operating officer for Global Trade Solutions at HSBC, to talk about the bank’s focus on digitalisation as part of its new trade strategy.
