PYMNTS MonitorEdge May 2024

Allianz Trade and Nuvo Team to Enhance Trade Credit

Allianz Trade

B2B trade credit tech platform Nuvo has teamed with trade credit insurance firm Allianz Trade.

The integration, announced Wednesday (March 13), will let Allianz Trade customers use Nuvo to add coverage for new and existing customers, monitor approval policy adherence, and optimize alignment between sellers’ customer risk and their insurance coverage.

“It’s more critical than ever that businesses mitigate the risk in their business relationships,” Aaron Lindstrom, Allianz Trade’s regional head of transformation and digital partnerships, Americas, said in a news release. “Integrating with Nuvo will enable our shared customers to manage their policies more simply, and to protect their operations from unforeseen risk events.”

According to the release, the partnership combines Nuvo’s anti-fraud measures and know your customer/know your business (KYC/KYB) offerings with Allianz Trade’s expertise in insurance underwriting to let sellers make informed credit decisions. 

PYMNTS looked at the challenges businesses face when onboarding new trading partners recently in a conversation with Thredd CEO Jim Carthy, who said the burden has gotten even heavier in the days of faster payments. 

Research from PYMNTS Intelligence has shown that KYB were considered inefficient to support the growth plans of middle-market companies. It’s a problem that goes back to the earliest days of eCommerce, McCarthy said. 

“Thirty years later, the problems have only gotten worse, not better,” he said. “How do you really start to bind credentials and underwriting to entities in a way that actually has some teeth in it?”

The answer, said McCarthy, “lies with data.” 

After a merchant is onboarded onto a platform, he said, it’s crucial to look at data — the velocity, the types of transactions, where the money is moving to and from and where it’s flowing. 

“The intermediaries — the reputable ones,” who introduce friction at just the right moments, “will do what they need to do to make sure that, before they send money downstream to the bank account, that you are really who you say you are and there will not be chargeback waves,” McCarthy said.

Allianz Trade’s partnership with Nuvo follows last week’s debut of the company’s payment solution designed for B2B eCommerce, dubbed Allianz Trade Pay.

“With Allianz Trade pay, we are now covering the entire B2B eCommerce value chain, from KYB to payment, and addressing the needs of the whole ecosystem, from eMerchants to BNPL players, banks and marketplaces,” François Burtin, global head of eCommerce at Allianz Trade, said in a news release.

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