Lloyds Bank has joined forces with artificial intelligence (AI) platform Cleareye.ai to improve the efficiency of processing and compliance checking of trade finance documentation.
The collaboration will see the implementation of Cleareye.ai’s ClearTrade technology starting this month.
This AI technology employs optical character recognition (OCR), machine learning, and natural language processing algorithms to extract critical information from trade documentation.
It includes both digital and paper-based import and export documentary letters of credit, documentary collections, undertakings, and trade loans.
The AI-driven system will also perform automated examinations of documents in accordance with the International Chamber of Commerce (ICC) Rules for Documentary Credits and Collections.
It will also conduct essential compliance checks, such as trade-based money laundering (TBML) reviews.
Cleareye.ai CEO and Co-founder Mariya George said: “Lloyds Bank is a global trailblazer in digital trade – something that, in part, has been achieved through its ability and appetite to forge strategic partnerships.
“We’re proud to be working together to apply our technology to its trade finance and compliance processes and look forward to seeing the benefits for the bank’s clients and its colleagues who serve them.”
Lloyds Bank’s new partnership comes after it became the first UK bank to complete a fully digital documentary collection, integrating electronic Bills of Lading (eBLs) and digital Promissory Notes (dPNs) in February 2024.
This achievement reduced transaction completion time from 15 days to approximately 24 hours and lowered working capital costs.
Additionally, in 2023, Lloyds Bank was the first bank globally to complete a transaction under the UK’s Electronic Trade Documents Act (ETDA).
The bank also executed the UK’s first digital promissory note purchase in 2022 under contractual law, utilising the International Trade and Forfaiting Association’s (ITFA) Digital Negotiable Instrument Initiative.
Lloyds Bank commercial banking trade and working capital products head Rogier van Lammeren said: “We’re continually looking for ways to help our clients trade simpler, faster and more efficiently and our partnership with Cleareye.ai enables us to deliver this.
“Using their AI technology, we will streamline critical parts of trade finance processes that we know are important to our clients.”
Last year, Cleareye.ai secured a strategic investment from J.P. Morgan. The firm also collaborated with J.P. Morgan’s Trade and Working Capital to constantly improve its offering.
