B2B international trade presents unique challenges in risk control, largely due to the non-standard, fragmented, and offline nature of trade data. Unlike B2C transactions, many B2B transactions are completed offline without standardised formats for order forms. Additionally, logistics data varies significantly across different freight forwarding companies, each using distinct shipping or transportation order formats, leading to complex and fragmented data management.

Moreover, B2B transactions are inherently more complex, leading to a wider range of risk types. For small and medium-sized enterprises (SMEs) engaged in foreign trade, the main risks include money laundering, sanctions, and fraud. First, money laundering detection is particularly challenging in B2B transactions involving SMEs which often exhibit low volume, high frequency, and unpredictable patterns, mimicking money laundering activities. Unlike B2C transactions, without sufficient data from large e-commerce platforms, it is difficult for B2B platforms to detect deviations in consumer patterns effectively.

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Second, sanctions pose another significant risk due to the complex flow of B2B trade. Transactions might appear between partners in sanctioned locations, but the actual trade flow could involve other regions, complicating risk identification and compliance with international regulations.

Third, fraud detection in B2B trade is also more difficult since B2B transactions require extensive external research and long-term data collection to verify the legitimacy of buyers due to limited direct access to detailed buyer information.

XTransfer: A one-stop cross-border financial and risk management service company

Recognising obstacles in B2B international trade transactions, XTransfer, a leading fintech unicorn, aims to help SMEs facilitate cross-border financial and risk management, build trusts, and reduce the barrier of global expansion. The company specialises in B2B cross-border trade payment services tailored for small and medium-sized enterprises (SMEs).

With a robust customer base exceeding 450,000 registered SMEs across more than 200 countries and regions, XTransfer stands as the global leader and the top company in China within its field. The company has established branches in Mainland China, Hong Kong SAR, the United Kingdom, the United States, the Netherlands, Canada, Japan, Australia, and Singapore, reinforcing its extensive international presence.

“The global trend in B2B cross-border trade is moving towards smaller and more fragmented transactions. This shift has made the challenges in anti-money laundering risk control more prominent. By utilising AI technology as a bridge, XTransfer can connect large financial institutions, banks, and SMEs worldwide. This enables SMEs to easily access cross-border financial services at the same level as large multinational corporations, creating a win-win situation,” emphasised Yanfang Liu, CTO of XTransfer.

How XTransfer use AI to revolutionise Anti-Money Laundering risk control in different industries

XTransfer applies AI technology to risk control through its advanced AI Anti-Money Laundering (AML) risk control algorithm model, designed to manage the complexities of global B2B cross-border transactions for SMEs. As transaction volumes decrease and markets fragment, traditional AML risk management becomes increasingly challenging. XTransfer addresses this by developing a data-driven, automated AI infrastructure focused on SMEs.

The AI AML algorithmic model’s effectiveness hinges on converting large volumes of unstructured data into structured formats. This process requires access to extensive databases that translate unstructured information into a usable format for the AI model.

“Founded seven years ago, XTransfer has served over 450,000 SME customers, allowing us to accumulate significant data. By analysing global economic development, industrial trends, and labour patterns, XTransfer transforms non-structural data into structural data, enhancing its AI-driven AML risk control models. In addition, we are also developing our own large language model to improve risk control and auditing efficiency by analysing diverse information in customer transaction attachments, identifying valuable data, and matching it with transactions, all without requiring customers to provide specific trade information,” shared Yanfang Liu.

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Moreover, XTransfer’s AI risk control technology also benefits traditional banks, which have historically relied on manual AML checks, making it inefficient and costly to serve SMEs. By partnering with international banks like J.P. Morgan, Deutsche Bank, DBS Bank, and Visa, XTransfer’s AI-driven infrastructure reduces manual work and increases efficiency, enabling banks to better serve SMEs.

This innovation facilitates SMEs’ access to cross-border financial services, boosting global trade efficiency and financial inclusion.

XTransfer’s latest innovations to remain its leading industry position

XTransfer provides SMEs with a comprehensive one-stop service platform, integrating AI throughout its entire product ecosystem, particularly in its intelligent customer relationship management (CRM) system. In particular, XTransfer CRM is an intelligent customer management system tailored for foreign trade SMEs, enhancing business processes such as marketing conversion, customer management, employee management, commodity buyer search and recommendation.

Leveraging new disruptive innovations in the technology landscape, in September last year, XTransfer introduced the industry’s first “AI Employee,” revolutionising the marketing, customer acquisition, and user management experience for SMEs. Now serving over 30,000 Chinese trading SMEs, the “AI Employee” has become the most widely used service among clients. Continuous tracking and feedback show a significant improvement in customer acquisition for enterprises utilising this feature.

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Furthermore, XTransfer CRM also includes AI letter-writing and AI website-building services. The AI letter-writing feature supports multiple languages and styles while the AI website-building tool enables the creation of personalised websites in just 30 seconds without requiring coding knowledge. This low-cost, easy-to-implement solution is particularly beneficial for foreign trade enterprises seeking to establish an efficient and effective online footprint.

To learn more about XTransfer and its innovative solutions, visit its website.

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This article is produced by the e27 team, sponsored by XTransfer

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