Deutsche Bank AG has made an investment into German FinTech startup Traxpay, in the hopes of improving its own supply chain finance offering.
As part of the deal, Deutsche Bank will leverage Traxpay’s technology to access discounting and reverse factoring to better manage cash flow flexibility.
Traxpay offers solutions that manage working capital along the entire supply chain. Clients can access dynamic discounting in which suppliers have the ability to decide which invoices they accelerate and when. The earlier a payment is requested, the bigger the discount.
Clients of Traxpay can also access supply chain finance, where financing partners can be used to pay suppliers.
Deutsche Bank global head trade finance and lending Daniel Schmand said, “The current crisis acts like a catalyst to the market. Numerous companies are reviewing their strategic relations with their suppliers and are identifying substantial potential in terms of financing.
“Recent developments we’ve seen as a result of COVID-19 show how important liquidity is for our clients. With Traxpay we have an experienced partner with a good track record. We can work with them to offer our clients further solutions in this area. Our answer to the question ‘FinTech or bank’ is: ‘FinTech AND bank.’”
WealthTech100 company Avaloq recently extended its partnership with Deutsche Bank until the end of 2028. Their agreement enables Deutsche Bank to leverage Avaloq’s wealth management technology for its operations in Switzerland, Luxembourg, the UK, Saudi Arabia, Singapore and Hong Kong.
Deutsche Bank was recently hit with a $150m fine for failing to make its relationship with convicted sex offender Jeffrey Epstein clear. According to the New York State Department of Financial Services, this is a significant compliance failure.
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