Comprehensive global solutions for global multinational companies and large corporates:
In most global multinational companies and large corporates, supply chain business is usually led by either their global and/ or regional headquarters. This approach ensures better control, the right structures and proper accounting treatment for their organisation.
Once, the business and technology platform stabilises, most corporates wants to extend the supply chain offering to other parts of their business so that the whole group can benefit from the concept.
However, a number of buying entities/ subsidiaries have to undertake local procurements and need local SCF solutions. The local supply chain funding might be in foreign currencies (i.e. USD, Euros, GBP, CHF, Yen, etc.) or local currencies (Turkish Lira, RMB, Indian Rupees, etc.) which are non-tradable internationally.
While a number of global banks might have local branches or subsidiaries to offer comprehensive solution to these corporates, however, on the other hand, most fintech platform providers might have cloud-based SCF technology platform but limited local infrastructure for extending supply chain financing in local currencies (Turkish Lira, RMB, Indian Rupees, etc.).
Pinnacle Trade Finance can help and support this gap, given is global connectivity, by offering fintech the following services to help them compete with global banks:
1. Local bank tie-up/ partnership for local leg of supply chain program
2. Alternatively, set-up local infrastructure for selling supply chain assets in local currencies
With this approach, fintechs might be able to re-position its supply chain product offering across multiple countries with a wider local infrastructure thereby making their product offering more competitive and bank neutral.