Thursday 30th March, 2017
Following hot on the heels of other key announcements from Tradeshift this week, the company has announced a strategic partnership with HSBC. In June last year, HSBC was one of a number of investors into the company during its latest round of funding.
In the rather stagnant world of corporate finance, banks seem to be waking up to the opportunities that fintech brings. Once considered either as an irrelevance or with apprehension as possible challengers, banks with foresight are now embracing fintech providers as partners.
And Tradeshift's platform is an attractive one, with around 1.5 million companies sitting on it, with about a $500 billion of transactions. The idea of the partnership is to offer a single space for buyers and suppliers to gain access to working capital by digitising their supply chain and offering finance down the long tail to companies the banks wouldn't normally deal with. The partnership with Tradeshift offers HSBC the advantage of being able to see transactions all the way down that chain, allowing for greater lending confidence.
Vivek Ramachandran, global head of propositions, global trade & receivables finance at HSBC says: “We support customers right through the trade cycle and globally process USD 1 million of trade a minute. The ability to provide value added services to the entire supply chain, combined with our capacity to provide finance across the breadth and depth of HSBC’s global network, create a unique proposition. The collaboration will also enable our customers to provide competitively priced funding to their eligible suppliers.”
The platform will be made available to clients from July 2017.