In an increasingly competitive landscape, forming strategic partnerships can be an effective way for banks to deliver additional working capital solutions for clients. U.S. Bank and Levantor provide an overview of their recent collaboration and how customers are already feeling the benefits.

 

Creating choice for clients is a top priority for banks. With new products and competitors entering the market by the day, they have to stay ahead of the game. So, when a bank is looking to introduce new products and services, there are three paths they can take: build it, buy it, or partner. While each of these approaches can work well, forming a strategic partnership can be the fastest and most effective way for a bank to both augment and complement its capabilities.

A new collaboration between U.S. Bank and Levantor Capital is an example of this in action. U.S. Bank already had deep ties to Levantor, a sales finance provider run by former Citi and Credit Suisse bankers. U.S. Bank already served as custodian for all Levantor’s working capital solutions, as well as supporting its payments and cash management. They built on the relationship in 2024, when U.S. Bank started providing its clients Levantor’s sales finance solutions. As a result of their work together, additional value has been created for both U.S. Bank and Levantor clients.

 

Searching for scale

When loyal customers ask for new products and services outside of their traditional purview, banks take notice.

“The challenge is that, in certain areas, it is going to be hard to find scale, despite the fact that you have great clients and prospects,” says Daniel Son, head of working capital finance sales and origination at U.S. Bank. “But if a bank can be nimble and focused on creating tailored financing solutions for clients – regardless of the product – you can help clients improve their working capital position.”

Whether it is cost, dealing with an ever-changing regulatory environment, or developing new products, finding scale remains a challenge for banks. As a result, many might not pursue new financing solutions that could benefit a segment of their clients and grow to support others.

Partnering can often present itself as the best way forward, as it is a faster and more effective way to add breadth and depth to the solutions banks already provide clients.

“A combination of building, buying and partnering works best for us,” says Son. “With our relationship with Levantor and their solution already adding value in the marketplace, it made sense to partner and add this to our toolkit.”

U.S. Bank views its size and culture as an ideal fit for successful partnerships. It’s the fifth largest commercial bank in the US, but is agile when it comes to execution and views partnerships as a real business enabler. The world’s largest banks often have competing priorities, making execution difficult.

“Clients are rarely concerned about how you’re structured throughout the bank or how you create new offerings,” says Michael Stitt, head of supply chain finance origination at U.S. Bank. “They want to know that you can deliver the working capital tools that will make them more efficient. Our focus is to nimbly meet their working capital needs, which often can be met effectively through partnerships we create.”

 

U.S. Bank and Levantor collaboration for clients

Last April, U.S. Bank teamed up with Levantor to bring the latter’s flexible sales finance solution to its clients. The solution helps buyers to extend payment terms without having to change the commercial and payment terms established with their clients. Some U.S. Bank customers are now utilising Levantor’s additional capabilities, giving them a new way to optimise payment terms.

“We always stress simplicity, scalability and compatibility with existing solutions,” explains David Frye, CEO at Levantor. “Traditional supply chain finance often doesn’t quite cater to some critical client requirements. This is where our solution comes in, offering an innovative approach to fill those gaps.”

Indeed, the Levantor solution complements those that are already in U.S. Bank’s working capital toolkit. The additional capabilities allow flexibility for the bank to offer more tailored financing options, depending on the specific client need.

 

Opening more doors for clients

Before the partnership between U.S. Bank and Levantor was formed, their operating models were already aligned. The connectivity between the two in terms of underlying infrastructure proved a big advantage when they joined forces, and the integration was seamless.

“One of the keys to the success of our relationship with U.S. Bank is the deeply ingrained approach they take to partnerships. They view it as a long-term relationship to add value on both sides,” says Frye.

While Levantor’s solution has provided a boost for U.S. Bank’s offering, having the security of a leading bank has greatly benefited Levantor.

“Having a trusted partner to deliver security and excellent service to our platform has been very important to our clients,” adds Frye.

The relationship is a good example of how strategic partnerships can be used to create a more comprehensive client offering. By integrating Levantor’s solution into its toolkit, U.S. Bank has not only opened doors for itself – it has opened doors for Levantor and its clients as well.