Microsoft showcases AI-powered trade finance ERP connector in collaboration with HSBC, Lloyds, ANZ and ICC DSI at Sibos 2025 - Trade Treasury Payments

At Sibos 2025 in Frankfurt, Microsoft hosted a session on the future of banking with AI, featuring Hari Janakiraman (Head of Industry and Innovation, Transaction Banking, ANZ), Bhriguraj Singh (Chief Product Officer, Global Trade Solutions, HSBC), Pamela Mar (Managing Director of the ICC Digital Standards Initiative), Surath Sengupta (Lloyds Bank, Head of Transaction Banking Products), and Lucy Li (Worldwide Financial Services Industry, Microsoft).

The demonstration, held during Sibos 2025, focused on improving interoperability, standardising data, and applying artificial intelligence to bridge interoperability gaps in trade finance processes.

The solution enables corporates to automatically extract, translate and validate bank-defined data elements from ERP systems. 

These data sets align letter of credit, collections and supply chain finance data elements of the ICC’s Key Trade Data Elements (KTDDE), which can be transferred directly to banks’ trade finance platforms. 

The objective is to reduce manual data re-entry, remove the need for paper-based documentation, and enhance the accuracy of trade transactions such as letters of credit.

During the demonstration, Microsoft used Dynamics 365 to simulate a corporate seller receiving an MT700 letter of credit. 

The system identified the key data elements within the LC and compared them with invoice and shipment information stored in the ERP. A generative AI assistant flagged a currency mismatch, recommended a correction, and completed the validation process. Once verified, the data was transmitted securely to the bank. 

The interface also allowed treasury teams to query the dataset conversationally, including whether an LC was compliant and its current status within the transaction process.

Microsoft stated that the connector is being designed with a decentralised architecture capable of integrating with multiple ERP systems, including Microsoft Dynamics, SAP,  Oracle And others.

It uses bank-defined and ICC-standard data fields to ensure compatibility across platforms. The AI component validates data in real time, identifying discrepancies and enabling corrections before submission. The data is transferred securely, with traceability throughout the transaction lifecycle.

Industry participants said the development addresses one of trade finance’s key bottlenecks: the disconnect between ERP data held by corporates and the requirements of banks’ trade systems. 

HSBC representatives noted that fewer than one percent of global trade transactions are currently fully digital and highlighted the importance of alignment on data standards and interoperability to achieve meaningful adoption. They added that the use of common frameworks such as the KTDDE and bank-defined dataset  (BDDS) can help establish a consistent foundation for electronic data exchange.

The ICC DSI has been leading work to define standardised data models, including the KTDDE, to harmonise the information used in trade finance processes. The alignment of BDDS with these models allows banks to define required data fields for trade transactions in a uniform and machine-readable format. This, in turn, supports automated validation, reduced processing time, and lower operational costs.

The Microsoft prototype remains in early testing. Future development will focus on extending compatibility with a broader range of ERP providers, improving AI accuracy, and ensuring compliance with emerging digital trade laws such as the UNCITRAL Model Law on Electronic Transferable Records (MLETR). Further work is also expected on data governance, auditability, and integration with bank systems.

By facilitating direct data exchange between corporates and financial institutions, the initiative seeks to improve efficiency in trade finance, reduce document discrepancies, and enable greater adoption of digital processes. The demonstration forms part of a wider industry effort to advance interoperability and establish trusted digital frameworks across cross-border trade.