MUFG Bank partners M1xchange to digitize corporate trade finance
1 min read 04 Nov 2022, 06:10 PM ISTThis collaboration allows MUFG Bank to leverage the digital ecosystem established by M1xchange, thereby enhancing the efficiency of its client services
PremiumNEW DELHI: MUFG Bank has partnered with M1xchange to facilitate digital invoice financing for the bank’s clients. Under M1xchange’s TReDS (Trade Receivables Discounting System), MSME suppliers get early funding for their receivables under a bidding mechanism, and this is funded by MUFG Bank, which takes on the credit risk of the corporate buyers. This collaboration allows MUFG Bank to leverage the digital ecosystem established by M1xchange, thereby enhancing the efficiency of its client 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 collaboration with M1xchange demonstrates MUFG’s commitment to meet the growing trade finance needs of the industry. With this partnership we are able to offer digital trade solutions to our clients while adding value to MSME enterprises who are the end users of this supply chain."
“The collaboration between MUFG Bank and M1xchange is another noteworthy step forward in the provision of financing to MSME and micro-category businesses. Shorter turnaround time and lower administrative costs would enable MUFG Bank to expand digital invoice finance offering in India", added Sundeep Mohindru, Managing Director & CEO of M1xchange.
MUFG Bank is supporting technology startups via its $300-million Ganesha Fund and is also helping them leverage the bank’s network across geographies to grow. As MUFG Bank scales up its innovation efforts, it will continue to collaborate with partners in India to embrace new digital technologies in support of its clients’ ambitions for a brighter future.
