HSBC, a global banking leader, has partnered with Tradeshift, a Danish B2B global trade network, to create a new joint venture aimed at offering embedded finance solutions to businesses.
This collaboration marks an important step in delivering financial services directly into e-commerce platforms, according to Finextra.
The partnership seeks to integrate HSBC’s payment, trade, and financing offerings directly into digital marketplaces, including Tradeshift’s B2B network. By embedding these services into e-commerce and marketplace venues, the venture aims to streamline financial access for businesses, particularly SMEs, allowing them to manage payments and access financing more easily.
HSBC, one of the world’s largest banks, provides comprehensive financial services and solutions across global markets. It is known for its large-scale operations, covering commercial, retail, and investment banking. Tradeshift, on the other hand, is a leading FinTech firm specialising in B2B marketplaces, helping companies digitise their supply chain processes through a cloud-based network.
The newly formed joint venture is called SemFi by HSBC and will initially operate in the UK. Through this platform, SME suppliers on e-commerce venues will be able to access digital invoice financing from HSBC. Additionally, the venture will offer HSBC virtual cards to provide greater security and flexibility in managing business spend.
HSBC has appointed key executives from its own ranks to lead the new venture, with Vinay Mendonca taking on the role of CEO and Shehan Silva as COO.
Vinay Mendonca, CEO of SemFi by HSBC, said, “Businesses are increasingly looking for seamless financial solutions that are embedded within their e-commerce journeys, so they can access these when and where they need them.”
He added, “SemFi by HSBC aims to deliver such embedded capabilities to help businesses grow. It will seek to bring the best of both worlds to our business customers and e-commerce partners; a startup technology mindset coupled with the global scale and expertise of an international bank.”
This partnership follows HSBC’s $35m investment in Tradeshift last year, a significant move in expanding its capabilities in digital finance. However, it is noteworthy that Tradeshift faced controversy last year after its CEO, Christian Lanng, was dismissed following allegations of sexual assault and harassment.
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