Supply chain finance for a large PSU bank in India | Tech Mahindra

Supply chain finance for a large PSU bank in India

Business Overview

Customer is a leading Fortune 500 bank with ~37Mn Corporate and SME customers with a revenue of US 51Bn, US 640Bn in assets as of 2021, providing a wide range of banking products through its network of branches in India and overseas.

 

 

SCM In India

Business Challenges

Elevating MSME Finance
  • Indian Government emphasis on MSME finance. With around ~37Mn Corporate and SME customers, bank wanted to grow its revenue from its corporate customer base.
  • Manual origination and transaction processing of SCF products at the bank resulted in significant delays, resulting in corporates and their vendor / suppliers to explore alternate sources of financing.

Solution Highlights

Custom Solutions

Tech M implemented a custom developed solution for application for Dealer and sub-dealer, VIN based financing, and Future dated bill discounting.

Automation Solution

The solution delivered E2E automation providing user management, vendor and dealer registration, arrangements – limits, credit period, tiered interest rates, interest recovery, bank details, loan and cash accounts, configure file formats.

Versatile Flexibility

Flexibility to support arrangements for a diverse set of customers and industries.

Streamlined Functions

Business functions covered included uploading of invoices, multi-level authorization, automated payments, multiple payment modes, auto debit on due dates, interest calculation, accrual and settlement mail/SMS alerts and reporting.

Value Delivered

Digitization Growth

E2E digitization reduced manual effort and transaction volumes also grew by 40% per year.

Rapid Expansion

Number of dealers and vendors grew manifold from 1000+ to around 45,000+ over a decade with sanctioned limits of over 7B USD as of FY23 to dealers and vendors.

Transaction Insight

Bank is able to leverage past transaction history of vendors and dealers to make decisions on ad-hoc limits.

Blockchain Innovation

TechM received The Economic Times BFSI Innovation Awards for a Blockchain Enabled- Supply Chain Module Developed for the client.