PSB Alliance, a private company set up by the country’s 12 public sector banks, on Friday announced that it has appointed Veefin Solutions to build a supply chain finance online platform, the firm said in a press conference here on Friday. The platform is expected to go live by end of the current financial year.
The online platform will enable small and medium enterprises (SMEs) to get financing through public sector banks in the initial stages, and later private banks and non-banking finance companies will also onboard the platform to provide funds to SMEs.
Some of the products that will be offered through this platform include sales invoice discounting, purchase invoice discounting, factoring, reverse factoring, dynamic discounting, distributor financing, inventory financing and deep tier vendor financing. In addition, all variants of MSME loan products, including term loan, overdraft, loan against property, among others, will be offered through the platform.
The digital platform will standardise all interactions with SMEs, assess credit requests with new-age data and analytics and connect lenders’ core banking systems with corporate and SME sourcing players like fintechs, B2B marketplaces, SME account service providers, e-invoicing players, among others.
It will also enable lenders to 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.
“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,” said Rajinder Mirakhur, MD & CEO at PSB Alliance.