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 Week reported Friday (Sept. 1). The primary objective of PSB Alliance is to undertake common IT and business processes, enhancing collaboration and efficiency among the participating banks.
Veefin will deploy and manage a unified digital platform for PSB Alliance, according to the report. This platform will standardize interactions and connect the lenders’ core banking systems with various corporate and small- to medium-sized business (SMB) sourcing partners, including FinTechs, B2B marketplaces, SMB account service providers and eInvoicing players. Additionally, it will provide valuable data and analytics to facilitate informed decision-making.
By leveraging Veefin’s unified digital platform, public sector banks (PSBs) and other lenders will gain better access to SMBs while reducing the cost of sourcing loans, the report said. Moreover, this resource eliminates the need for significant capital investments and resources required to establish their own tech stacks and connect with numerous parties independently.
SMBs will also benefit from this partnership as they gain access to supply chain financing from various PSBs, banks and non-banking financial companies (NBFCs) through a single platform, per the report. The partnership also aims to solve the unmet credit needs of SMBs in India.
Rajinder Mirakhur, CEO and managing director of PSB Alliance, said in the report that this collaboration aims to reduce the cost of sourcing customers, expand opportunities for SMBs to access credit and take a significant step towards addressing the credit gap faced by SMBs.
Raja Debnath, managing director of Veefin Solutions, said in the report that by providing access to the entire ecosystem through a single platform, the partnership aims to enhance collaboration and efficiency among all stakeholders involved.
In another recent development in this space, it was reported Monday (Aug. 28) that Indian B2B Software-as-a-Service (SaaS) company Clear has introduced a digital invoice financing tool.
About two weeks earlier, on Aug. 18, supply chain network Infor Nexus and DBS Bank joined forces to launch a new pre-shipment financing solution for SMBs in India that are in the Infor Nexus supply chain ecosystem.
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