New Delhi: MUFG Bank has partnered with M1xchange to facilitate digital invoice financing for the customers of the bank. Under M1xchange’s TReDS (Trade Receivables Discounting System), MSME suppliers get initial funding for their receivables under a bidding mechanism, and is funded by MUFG Bank, which takes on the credit risk of corporate buyers . This collaboration allows MUFG Bank to leverage the digital ecosystem established by M1xchange, thereby increasing the efficiency of its customer services.
Rohit Narayanan, Director and Head of Transaction Banking, MUFG India said, “We are delighted to leverage TReDS to further support our corporate clients in India. The association with M1xchange is MUFG to meet the growing trade finance needs of the industry. With this partnership we are able to provide digital business solutions to our customers, while adding value to the MSME enterprises who are the end users of this supply chain.”
“The collaboration between MUFG Bank and M1Xchange is another notable step forward in the provision of financing to MSMEs and micro-category businesses. Shorter turnaround time and lower administrative cost will enable MUFG Bank to expand its digital invoice finance offering in India.”
MUFG Bank is supporting technology startups through its $300 million Ganesh Fund and also helping them leverage the bank’s network across geographies to grow. As MUFG Bank enhances its innovation efforts, it will continue to collaborate with partners in India to adopt new digital technologies in support of its customers’ ambitions for a brighter future.
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