To build a uniform cloud-based supply chain financing (SCF) ecosystem, a PSB alliance made up of 12 public sector banks (PSBs) in India stated that it was working with Veefin Solutions, a BSE-listed firm.
According to a statement from the alliance, the platform “will connect fintechs, B2B marketplaces, accounting service providers, and new-age data providers with the core banking systems of multiple Lenders,” calling it “the first-ever platform” of its sort internationally.
Each of the 12 public sector banks (PSB) owns 8.33% of PSB Alliance, which was founded in early 2022 and is jointly owned by them. Leading PSBs like 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 are part of the company, whose goal is to carry out common IT and business processes.
Veefin Solutions, a Mumbai-based company, develops supply chain financing and digital lending solutions for corporations, B2B marketplaces, banks, and other financial institutions. With corporate and SME sourcing partners like fintechs, B2B marketplaces, SME account service providers, and e-invoicing players, it will connect the core banking systems of the lenders and standardize all interactions. Additionally, it will offer analytics and statistics.
The statement added that SMEs will also have access to supply chain financing from various PSBs, other banks, and NBFCs through this one platform. “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,” it said.
The unmet credit needs of MSMEs are reportedly projected to be between 20 and 25 lakh crore, according to Rajinder Mirakhur, CEO and MD of PSB Alliance. According to Mirakhur, “this project brings all PSBs together as a cohesive force, powered by their combined balance sheet strength and resources, to lower the cost of sourcing customers and expand their opportunity to provide access to credit.”
The PSB Alliance’s Head of Strategy, Eric Anklesaria, added, “This unique unified, cloud-based platform will power all the PSBs to play to their strengths, which is providing capital at a scale that only the PSBs can deploy.”
By the conclusion of the current fiscal year, which ends in March 2024, the platform is anticipated to be operational.
