Invest bank expands digital trade finance through strategic deal with Veefin Solutions

Gulf Today, Staff Reporter

Invest bank on Tuesday announced a strategic partnership with Veefin Solutions to introduce cutting-edge digital trade finance solutions for businesses across the UAE. Through this collaboration, Invest bank will implement advanced Supply Chain Finance (SCF) solutions, designed to optimize cash flow, enhance working capital efficiency, and streamline receivables and payables management via 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 significantly contributes to the UAE’s startup ecosystem, hosting approximately 60,000 small to medium-sized enterprises and startups valued at $424 million across six free zones and 33 industrial zones. Considering formal SMEs account for 40% of national income and generate roughly seven out of every 10 jobs, highlighting their economic significance.

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”.

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.

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.

Invest bank’s partnership with Veefin Solutions represents a strategic milestone in digital transformation, reinforcing customer-centric innovation through cutting-edge banking solutions. This collaboration accelerates the bank’s transition to a more integrated and seamless customer experience, enhancing service speed, reliability, and operational efficiency. Additionally, the partnership strengthens Invest Bank’s role in driving Sharjah’s economic growth and fostering community engagement.

Founded in 1975, Invest bank PSC is a prominent public shareholding company based in Sharjah, UAE. Boasting over four decades of substantial presence, the bank has cemented its reputation as a trusted provider within the UAE’s competitive banking sector, dedicated to delivering top-tier financial services. In 2019, the Government of Sharjah became a strategic stakeholder, underscoring the bank’s standing through significant investment and ownership. The Government’s share, initially at 81%, has been adjusted to 70.11% following the most recent acquisition by the Sharjah Social Security Fund (SSSF). This strategic partnership aligns with the bank’s recent capital increase, where it realized an influx of paid-in share capital amounting to 3,202,493 in Q2 2024. Invest Bank continues to publicly trade its shares on the Abu Dhabi Securities Exchange (ADX) and continues to be a trusted bank of choice for corporate and retail clients.