Mumbai, 2nd September 2023PSB Alliance, the entity setup by India’s 12 Public Sector Banks (PSBs), has appointed Veefin Solutions Ltd. to deploy and administer a Unified cloud-based Supply Chain Financing (SCF) ecosystem in the country. This is the first time in the world when so many large banks have come together to setup a SCF and SME finance ecosystem to provide SME customers with financing, sourced through various Fintechs and B2B marketplaces. This cloud-based platform will go live within this financial year.
This initiative of PSB Alliance is consistent with the Indian government’s efforts to encourage PSBs to build technology solutions to expedite the credit decisioning process, and loan disbursements to the MSME segment.
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 like Fintechs, B2B marketplaces, SME account service providers, e-invoicing players. The unified 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 is a global pioneer in SCF solutions and the clear market leader in SCF deployments amongst the lenders in India. The technology player enjoys partnerships with some of the top global banks and financial institutions for its SCF platform.
Rajinder Mirakhur, CEO and Managing Director, PSB Alliance said, “With the unmet credit needs of MSMEs estimated to be INR 20-25 Tn, the time has come to unify and collaborate for the national cause of supporting one of the most crucial pillars of the Indian economy. This project, brings all the PSBs together as a cohesive force, powered by their combined balance sheet strength and resources, to reduce the cost of sourcing customers and expand their opportunity to provide access to credit. Veefin Solutions’ domain expertise in SCF aligns with PSB Alliance’s aim of providing the greatest technology platform for our partner institutions that is simple, unified, and expedites faster go-to-market.”
Raja Debnath, Managing Director of Veefin Solutions Ltd. said, “This opportunity to deploy a unified platform that will bring all PSB banks, private and small finance banks, and NBFCs together to provide liquidity to the ecosystem of B2B marketplaces and fintech players who are all attempting to provide financing to SMEs is unprecedented in its scale and aspirations. We commend the forward thinking that PSB Alliance has demonstrated in embarking on this nation building project. Veefin has been chosen to not only supply the technical solution, but also to manage this entire ecosystem. This partnership is an endorsement of the role that Veefin has been playing in developing the SCF ecosystem and platform in the country.”
Eric Anklesaria, Head of Strategy, PSB Alliance added, “This is the first time in the world that a program of this size and complexity is being undertaken. This unique unified, cloud-based platform will power all the PSBs to play to their strengths, which is providing capital at the scale that only the PSBs can deploy. There has been a long felt need within the PSBs to have such a platform that would ease the challenges of integrations with tens and hundreds of data providers and platforms. Maximum number of lenders including a few PSBs are already using Veefin. Their platform is a ready-to-use product that makes multiple integrations with fintechs and marketplaces a thing of the past for banks. We believe this will be a game-changer for the SCF business in the country.”
The products supported on the platform will have all SCF variations including Sales Invoice Discounting, Purchase Invoice Discounting, Factoring, Reverse Factoring, Dynamic Discounting, Distributor Financing, Inventory Financing,
Deep Tier Vendor Financing. In addition, all variants of MSME Loan Products including Term Loan, Overdraft, Loan against Property, other Collateral based loans, CGTMSE loans and Mudra loans will be offered through the platform.
PSB Alliance includes 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.