Yes Bank, one of the leading private sector banks in India, has launched SmartFin, an advanced digital platform for supply chain finance (SCF) in collaboration with Veefin Solutions, a fintech company that specializes in SCF solutions. The platform aims to support micro, small and medium enterprises (MSMEs) by providing them with easy access to working capital finance from Yes Bank. SmartFin is powered by InterSystems IRIS data platform, which enables rapid development, data integration and flexibility in the supply chain.
What is SmartFin?
SmartFin is an end-to-end digital SCF platform that facilitates online SCF loans for dealers and suppliers of corporate clients of Yes Bank. The platform enables them to achieve their strategic business objectives, such as working capital efficiency, market expansion, sales acceleration and strengthening supply chain partnership. SmartFin also offers features such as real-time visibility of transactions, automated reconciliation, dynamic pricing and flexible repayment options.
How does SmartFin work?
SmartFin works by integrating the corporate client’s enterprise resource planning (ERP) system with Yes Bank’s core banking system and Veefin’s SCF solution. This allows the platform to capture the invoice data from the corporate client and offer pre-approved SCF loans to the dealers and suppliers based on their credit profile and transaction history. The dealers and suppliers can then accept or reject the loan offer on the platform and receive the funds in their Yes Bank account within minutes. SmartFin leverages InterSystems IRIS data platform to enable fast and seamless data exchange, processing and analysis across the supply chain.
How does SmartFin help MSMEs?
SmartFin helps MSMEs by providing them with a convenient and cost-effective way to access working capital finance from Yes Bank. MSMEs often face challenges in obtaining finance from traditional sources due to their lack of collateral, credit history or formal documentation. SmartFin overcomes these barriers by using the invoice data from the corporate client as a proxy for the creditworthiness of the MSMEs. By selling their invoices to Yes Bank at a discounted price, MSMEs can receive immediate cash flow without waiting for the payment due date. This helps them to meet their operational expenses, invest in growth opportunities and improve their financial performance. According to a report by IBEF, supply chain finance can help MSMEs grow their revenues by 15-20%, reduce their financing costs by 10-15% and increase their profitability by 5-10%. Moreover, supply chain finance can also help MSMEs create more employment opportunities, as they contribute to 45% of India’s total employment.
What are the benefits of SmartFin?
SmartFin offers several benefits to the stakeholders involved in the supply chain. For the corporate clients, SmartFin helps them to optimize their working capital cycle, improve their liquidity position, enhance their supplier loyalty and reduce their operational costs. For the dealers and suppliers, SmartFin helps them to access timely and affordable finance, improve their cash flow management, increase their sales volume and grow their business. For Yes Bank, SmartFin helps them to expand their customer base, diversify their loan portfolio, reduce their credit risk and increase their fee income. For InterSystems IRIS data platform, SmartFin showcases its capabilities to support complex and high-performance data applications in the supply chain domain.
Why did Yes Bank choose Veefin Solutions?
Yes Bank chose Veefin Solutions as its partner for developing SmartFin because of its expertise and experience in providing SCF solutions to banks worldwide. Veefin Solutions has a proven track record of delivering scalable, secure and user-friendly SCF platforms that meet the needs of both banks and their customers. Veefin Solutions also has a strong presence in India, with offices in Mumbai and Bengaluru.
What are the future plans for SmartFin?
Yes Bank plans to scale up SmartFin by adding more corporate clients and their dealers and suppliers to the platform. The bank also plans to introduce more SCF products and services on the platform, such as reverse factoring, dynamic discounting and payables financing. The bank expects SmartFin to become a leading digital SCF platform in India and contribute significantly to its growth and profitability.