IDBI Bank signs MoU with Vay Network Services Pvt. Ltd. (Vayana Network) as its first Fintech partner for e-SCF solutions
Mumbai, October 11, 2022: IDBI Bank has signed an MoU with Vay Network Services Pvt. Ltd. (Vayana Network) as its first Fintech partner for e-SCF (end- to- end digitalisation) services. This partnership aims to contribute in the growth of the Supply Chain Finance (SCF) penetration in India, which is less than 1 % of GDP and contributes only 5% of the outstanding banking assets.
IDBI Bank has an existing CMS and e-Trade platform and with the introduction of e-SCF the Bank aims to provide complete digital solutions to Corporate Banking and MSME clients. This platform is expected to reduce paperwork, and transaction processing time while providing a smooth customer experience throughout.
While inaugurating e-SCF program on the occasion of the Bank’s Foundation Day, Shri Rakesh Sharma, MD & CEO, IDBI Bank said, “Although traditionally banks have preferred lending Working Capital loans over Supply Chain Financing due to various constraints and challenges, in the present context, Fintechs have revolutionized the SCF segment by digitizing the interaction between all the stakeholders. Technology is making the process more efficient, flexible, transparent and is providing value-added services to end users.”
Commenting on the collaboration, Shri. J. Samuel Joseph, Deputy Managing Director, IDBI Bank said “The Current Supply Chain Finance market in India is estimated at Rs.60,000 crore and is expected to grow by 17% per annum. We have sought this partnership to leverage the opportunity available in the existing SCF market. As a part of our core strategy, we are engaging in a varied range of activities with new ways of expanding with innovative solutions so as to create value for our corporate banking and MSME clients. We look forward to engaging with Vayana Network for a successful journey.”