PSB Alliance partners Veefin Solutions for a unified cloud-based platform for supply chain financing

A PSB alliance comprising 12 public sector banks (PSBs) in India, on Friday, announced its collaboration with Veefin Solutions, a BSE-listed company, to implement a unified cloud-based supply chain finance (SCF) ecosystem.

Calling it “the first-ever platform” of its kind, globally, a statement issued by the alliance said that the platform “will connect fintechs, B2B marketplaces, accounting service providers, new-age data providers with the core banking systems of multiple Lenders”. 

PSB Alliance, is jointly owned by the 12 public sector banks (PSB), each one holding 8.33% stake in the company and became operational early 2022. The company's objective is to undertake common IT and business processes and includes leading PSBs such as 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. 

Mumbai-based Veefin Solutions builds supply chain finance and digital lending solutions for banks, financial institutions, fintechs, corporates and B2B marketplaces. Its unified digital platform will standardise all interactions and connect the lenders' core banking systems with corporate and SME sourcing partners like fintechs, B2B marketplaces, SME account service providers and e-invoicing players. It will also provide data and analytics. 

"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," the statement said, adding that SMEs will also get access to supply chain financing from various PSBs, other banks and NBFCs through this one platform.  

According to Rajinder Mirakhur, CEO and MD of PSB Alliance, the unmet credit needs of MSMEs are estimated to be around ₹20-25 lakh crore. "This project brings all 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 Mirakhur. 

Eric Anklesaria, Head of Strategy, PSB Alliance added, “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.” 

The platform is expected to go live by the end of the current financial year ending March 2024.