NEW DELHI: MUFG Bank has partnered with M1xchange to facilitate digital bill financing for the financial institution’s purchasers. Under M1xchange’s TReDS (Trade Receivables Discounting System), MSME suppliers get early funding for his or her receivables beneath a bidding mechanism, and that is funded by MUFG Bank, which takes on the credit score threat of the company patrons. This collaboration permits MUFG Bank to leverage the digital ecosystem established by M1xchange, thereby enhancing the effectivity of its shopper companies.
Rohit Narayanan, director and head of transaction banking, MUFG India, mentioned “We are delighted to leverage TReDS to additional assist our company purchasers in India. The collaboration with M1xchange demonstrates MUFG’s dedication to satisfy the rising commerce finance wants of the business. With this partnership we’re capable of supply digital commerce options to our purchasers whereas including worth to MSME enterprises who’re the top customers of this provide chain.”
“The collaboration between MUFG Bank and M1xchange is one other noteworthy step ahead within the provision of financing to MSME and micro-category companies. Shorter turnaround time and decrease administrative prices would allow MUFG Bank to broaden digital bill finance providing in India”, added Sundeep Mohindru, Managing Director & CEO of M1xchange.
MUFG Bank is supporting know-how startups by way of its $300-million Ganesha Fund and can also be serving to them leverage the financial institution’s community throughout geographies to develop. As MUFG Bank scales up its innovation efforts, it would proceed to collaborate with companions in India to embrace new digital applied sciences in assist of its purchasers’ ambitions for a brighter future.
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