The Singapore operation of Malaysian bank Maybank has announced it will provide supply chain finance to users of tradetech PracBiz’s transaction management platform.
PracBiz Exchange (PBX) is a digital transaction management platform that allows business-to-business invoice settlement across the food and beverage, fast-moving consumer goods and pharmaceutical sectors. It processes more than US$3.7bn in transactions annually.
Maybank says in a LinkedIn post that the data from these transactions can allow businesses, especially SMEs, to “provide alternative sources of information for banks to assess their credit standing, apart from relying on financial statements and collateral”, and therefore gain access to supply chain finance.
Many SMEs struggle to access finance: according to a report by the World Trade Organization in September, around half of trade finance requests by SMEs are rejected, often due to a lack of detailed financial information.
“By providing our services in partnership with platforms that are integral to business operations, we aim to provide accessible financial solutions that support industries and our clients’ growth,” says Alvin Lee, country CEO of Maybank Singapore. “This partnership reflects Maybank’s commitment to meet clients’ needs for ease of transactions in a highly dynamic environment.”
Lee says the partnership also aligns with Maybank’s M25+ strategic goals, one of which is “accelerating digitalisation and technology modernisation […] to allow for integration of ecosystems within and beyond banking”, according to a press release issued last month at the launch of the strategy.
