SBI Group launches SBI-BANCO deep-tier supply chain finance platform

By Leandra Monteiro

A subsidiary of SBI Group, SBI-BANCO is a blockchain-oriented end-to-end “Deep-Tier Supply Chain Finance Platform” that has been successfully launched in APAC. This will enable SME’s to access financing across targeted industries. SBI-BANCO is a strategic partnership between the platform operator BYFIN and the Singapore-based FinTech company RootAnt Global, a digital banking platform technology provider.

For long SME’s have struggled to get adequate finance. On the other hand, large corporates have struggled not only to optimize their working capital but also to digitalize their current operations and build resiliency into their supply chain.

SBI-BANCO targets industries with deep-tier suppliers such as construction, real estate, energy, FMCG, automotive and logistics. It focuses on “deep-tier reverse factoring” and leverages on the stronger credit standing of anchor corporate buyers, to provide access to unsecured, cheap, and fast financing to not only tier-1 suppliers, but also the entire supply chain of SMEs suppliers. Anchor corporate buyers strengthen their cash flow and relationship with their entire supplier ecosystem.

SBI-BANCO provides better transparency and traceability in the value chain, prevents fraud and double financing. Also, it team ups with banks to promote “Green and sustainable Deep-Tier Supply Chain Finance” to grant better rates to eligible SMEs suppliers with sustainable practices, incentivizing the entire supply chain to “go-green” and move towards “carbon neutrality”.

SBI-BANCO is currently Live and onboarding the first batch of anchor corporates. It has completed the 1st cross-border financing transaction with a Singapore renewable energy company and its Chinese suppliers.  The platform will be subsequently rolled out in HK, Japan, Vietnam, and other ASEAN regions in the coming months.

“BYFIN is an enthusiast when it comes to the development of FinTech. Having seen BANCO’s unprecedented potential in transforming the traditional and labour-intensive Supply Chain Finance, SBI Group has therefore made a quick and confident decision to invest in RootAnt. We are glad to announce our partnership with RootAnt to launch the blockchain-oriented SBI-BANCO Platform in APAC. Not only does the platform encourage sustainable development of supply chains in fast growing economies in Asia, but also universalizes Deep Tier Green Supply Chain finance,” said Mr. Min Zhu, CEO of BYFIN (SBI Group).

“Deep-Tier supply chain finance is still at its initial stages in APAC, and we see a tremendous opportunity in an end-to-end digital banking platform offering like BANCO where key players such as banks, enterprises and SMEs collaborate on a single platform, to facilitate cross-border trade, close the financing gap for SMEs and support enterprises to strengthen their supply chain and cash positions at scale. The key is to leverage on digital transaction banking technologies to improve transparency and traceability in the value chain, to prevent fraud (internal and external) and improve risk management. Therefore, we are excited to be partnering with a strong partner like BYFIN (SBI Group), to promote this transformative solution to the region,” said Mr. Lincoln Yin, CEO of RootAnt Global