How AI is unlocking the future of MSME lending

Traditional financing models have long supported MSMEs, but how can AI unlock dynamic, technology-enabled lending solutions to address their evolving needs?

Here we’re breaking down the need-to-know takeaways from the "Credit Score Elevated: How AI is Unlocking Lending for MSMEs” panel Hong Kong FinTech Week x StartmeupHK Festival 2025, where Christina Ong, Managing Director, Head of Business Banking, Commercial Banking, Hong Kong, HSBC joined industry leaders to discuss how AI is transforming lending for micro, small and medium-sized enterprises (MSMEs) through a more dynamic, data-driven approach to credit assessments.

• Broadening data sources– MSME creditworthiness is now assessed beyond traditional financial statements. With AI, banks can build multidimensional credit profiles using a broader range of data and insights—enabling a more holistic evaluation.
• From capital providers to growth partners– Access to richer data sets allows banks to offer strategic advice alongside financing, helping MSMEs identify market trends and expansion opportunities.
• More than lending – AI is enabling a more streamlined lending experience, but is also unlocking additional value through dynamic risk assessments and advanced fraud detection systems–further reinforcing the growth partner model.
• Responsibility at the core – AI doesn’t come without risks, which is why strong AI governance and ethical standards are necessary to balance the rapid innovation that this technology is making possible.
• The ecosystem effect - At HSBC, we collaborate with diverse partners to build a connected ecosystem that breaks down silos. This integrated approach provides MSMEs with tailored credit assessments and timely support to fuel their growth momentum.

AI is well on its way to changing finance for good. If you would like to explore how these insights can be applied to your business strategy, please reach out to your dedicated HSBC representative.

Reminder: To borrow or not to borrow? Borrow only if you can repay!