A PSB alliance comprising 12 public sector banks (PSBs) in India, has contracted Veefin Solutions Ltd to implement and manage a unified cloud-based Supply Chain Finance (SCF) eco-system.

This marks an initiative where numerous large banks collaborate to establish an SCF and SME finance ecosystem, enabling SMEs to access financing from various Fintechs and B2B marketplaces. The cloud-based platform is set to launch within the current fiscal year.

Veefin’s unified digital platform will standardise interactions, enhance credit requests with data and analytics, and integrate lenders’ core banking systems with corporate and SME sourcing partners, including Fintechs, B2B marketplaces, SME account service providers, and e-invoicing platforms.

The platform will provide PSBs and other lenders improved SME access, reduce loan origination costs, and eliminate the need for significant capital investment and resource allocation to build individual tech stacks and connect with various stakeholders. It aligns with the Indian government’s plan to encourage PSBs to adopt technology solutions for faster credit decisions and MSME loan disbursements.

The shares of Veefin Solution’s Ltd were up by 7 per cent at Rs 253 at 12.48 pm on the BSE.