Invest Bank has announced a strategic partnership with Veefin Solutions to introduce innovative digital trade finance solutions for businesses across the UAE. This collaboration will see the implementation of advanced Supply Chain Finance (SCF) solutions, aimed at optimizing cash flow, improving working capital efficiency, and streamlining the management of receivables and payables through specialized open account finance products.
Deploying the SCF system is particularly crucial given the rapid expansion of businesses in the UAE. As of mid-2024, the country is home to 1.021 million registered enterprises, including over 550 fintech companies. Additionally, SMEs are projected to reach one million by 2030, reinforcing the need for seamless, technology-driven financial solutions.
Sharjah plays a vital role in the UAE's startup ecosystem, with around 60,000 small to medium-sized enterprises (SMEs) and startups valued at $424 million, spread across six free zones and 33 industrial zones. SMEs contribute to 40% of the national income and create approximately seven out of every 10 jobs, underscoring their economic importance.
Edris Al Rafi, Chief Executive Officer at Invest Bank said: "With our strategic partnership with Veefin, Invest Bank is poised to leverage Supply Chain System to redefine the landscape of open account finance. This collaboration not only strengthens our position in competitive markets but also enhances our risk management framework and elevates client service standards. By integrating cutting-edge financial technology, we are driving a transformative shift in our digital strategy, empowering businesses with seamless financial solutions while reducing dependency on traditional banking infrastructure”.
The new Supply Chain Finance (SCF) system enhances financial management by enabling businesses to optimize cash flow with greater flexibility. Clients can choose between early payment discounts or extended payment terms, ensuring liquidity remains aligned with their operational needs. Additionally, the system enhances risk management by providing greater visibility and real-time control over the financial health of suppliers and buyers, enabling smarter, data-driven decision-making. By reducing the time gap between payables and receivables, the SCF solution further improves working capital efficiency, ensuring smoother operational liquidity and sustainable business growth.
Gautam Udani, Co-Founder and Chief Operating Officer at Veefin Solutions, said: “We are glad to support Invest Bank in its mission to digitize Supply Chain Finance. Our platform will help replace legacy manual systems with an intuitive, fully automated digital solution, ensuring faster approvals, better transparency, and a superior user experience for businesses seeking financing".
The advanced SCF system streamlines customer and bank operations by enabling end-to-end digital transaction management, from submission to funding and settlement. The system enhances operational efficiency, scalability, and automation, empowering users with greater control and flexibility. It also supports seamless customer onboarding, underwriting, transaction processing, and collections, forming a robust technological framework that aligns with Invest Bank’s strategic vision to position itself as a cloud-based financial leader.
Invest Bank’s collaboration with Veefin Solutions marks a significant step in its digital transformation journey, enhancing customer-focused innovation with advanced banking solutions. This partnership accelerates the bank’s shift towards a more integrated and seamless customer experience, improving service speed, reliability, and operational efficiency. Furthermore, it strengthens Invest Bank’s contribution to Sharjah’s economic development and community engagement.