Investor Presentaiton
Appendix 10 Transforming our business for the future of trade
3 The future of trade (1/3) - Tech and Services trade
Opportunity
Key deals
Cloud services
Cloud services: +20% CAGR in 2020-22; $350bn in
turnover by 20221
■ Services Trade: +31% increase from 2019 to 2025
($1.9tn increase) 2
Point of Sale financing
Google
■ Client Needs: Provide flexible payment terms to
buyers users to drive sales and increase market
share in cloud services and licensing products;
mitigate buyer credit risk
■ Our solution: Extending instalment payments to
buyers/subscribers of fixed-price, multi-year services
contracts at the point of sale through a Receivables
Finance structure
■ Why HSBC: Ability and willingness to co-create
structured solutions; strong client relationship and
global coverage to support global footprint and
underwrite obligor risks
E-Commerce
☐
eCommerce sales of $25.6tn in 20183;
c.40% of consumers will be digital natives by 2030
(up from 18% in 2019)4
Merchant financing
E2
Alibaba Group
■ Client need: provide short-term working capital to
help c.2K merchant sellers on Tmall Global e-
commerce platform to stock inventory
■ Our solution:
-
- Partnered with Alibaba's smart logistics platform,
CaiNiao, to leverage real-time data for credit
decisioning and ongoing monitoring of controls to
provide receivables-led asset based lending.
- Provide indicative offers to merchants in just
minutes through connection with CaiNiao API
Why HSBC: co-create digital automated financing
solution; API suite and full scope of banking services
1. Source: Gartner, 2020, Worldwide Public Cloud Service Revenue Forecast for 2021 & 2022
2. Source: Western Union and Oxford Economics, 2020, The Global Services Trade Revolution, growth over next 5 years
Source: Global e-Commerce UNCTAD Press Release, April 2020
234
4. Source: The booming digital economy, September 2020, HSBC Research
20
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