British universal bank, HSBC has partnered with B2B global trade network, Tradeshift to launch a new embedded finance solution that will help its business clients called SemFi by HSBC.
SemFi by HSBC has been created to help SME suppliers on e-commerce venues to access digital invoice financing from HSBC. Furthermore, it aims to offer SMEs greater flexibility and security in their spend management through HSBC virtual card solutions.
The new offering has come at a critical point in the development of the SME market. According to the Financial Stability Board (FSB), 52 per cent of SMEs suffer from late payments. One solution to this problem is ensuring digital invoicing can be done accurately and quickly.
SemFi will embed HSBC payment, trade and financing solutions across a range of e-commerce and marketplace venues. This will include Tradeshift’s own B2B network.
Looking to ensure its business customers are able to succeed in their financial journeys, HSBC has been steadily building its capabilities and presence in embedded finance. Commenting, Vinay Mendonca, chief executive officer of SemFi by HSBC said: “Businesses are increasingly looking for seamless financial solutions that are embedded within their e-commerce journeys, so they can access these when and where they need them.
“SemFi by HSBC aims to deliver such embedded capabilities to help businesses grow. It will seek to bring the best of both worlds to our business customers and e-commerce partners; a startup technology mindset coupled with the global scale and expertise, of an international bank.”
The new venture is led by senior leadership drawn from HSBC, including:
- Vinay Mendonca as chief executive officer (CEO)
- Shehan Silva as chief operating officer (COO)
- Jo Miyake, interim CEO of global commercial banking at HSBC, joins the SemFi board