PSB Alliance & Veefin partner on cloud-based Supply Chain Financing
By Gloria Methri
PSB Alliance, an entity formed by 12 state-owned lenders in India, has partnered with Veefin Solutions, a builder of white-labelled supply chain finance and digital lending solutions. This collaboration aims to introduce a unified cloud-based ecosystem for supply chain financing, streamlining, and administering supply chain financing processes efficiently.
The platform is designed to become the common technology bridge for public sector banks, private sector banks, and NBFCs to source and provide supply chain finance and small business loans. It will connect FinTechs, B2B marketplaces, Accounting Service Providers, and new-age data providers with the core banking systems of multiple lenders.
Veefin’s unified digital platform will standardize all interactions and enrich the credit requests with new-age data and analytics while connecting the lenders’ core banking systems with corporate and SME sourcing partners such as FinTechs, B2B marketplaces, SME account service providers, e-invoicing players.
The platform will enable PSBs and other lenders to get better access to SMEs, lower the cost of sourcing loans, and eliminate the need for capital investment and resources in establishing their own tech stacks and connecting with hundreds of parties. SMEs will get access to supply chain financing from PSBs, other banks, and NBFCs through this platform.
Veefin will provide the technology and manage the onboarding of the ecosystem onto this platform. The primary objective of PSB Alliance is to undertake common IT and business processes, enhancing collaboration and efficiency among the participating banks.
The PSB Alliance includes the Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, Indian Bank, Indian Overseas Bank, Punjab National Bank, Punjab & Sind Bank, State Bank of India, UCO Bank, and Union Bank of India.
This partnership paves the way for a multi-fold increase in SMEs getting access to credit through supply chain financing (SCF). Products supported include all SCF variations including Sales Invoice Discounting, Purchase Invoice Discounting, Factoring, Reverse Factoring, Dynamic Discounting, Distributor Financing, Inventory Financing, Deep Tier Vendor Financing, and other variants of MSME Loan Products.
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