HSBC has partnered B2B global trade network Tradeshift on a joint venture offering embedded finance solutions to business clients.
The jointly owned venture, called SemFi by HSBC, will embed the bank's payment, trade and financing offerings across a range of e-commerce and marketplace venues, including Tradeshift’s own B2B network.
Initially operating in the UK, SemFi by HSBC will let SME suppliers on e-commerce venues access digital invoice financing from HSBC. It also aims to offer SMEs greater flexibility and security in their spend management through HSBC virtual cards.
HSBC has put in place its own people at the new venture, with Vinay Mendonca taking on the CEO role and Shehan Silva COO.
Says Mendonca: “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.
“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.”
HSBC invested $35 million in Tradeshift last year, shortly before the Danish fintech was rocked by serious allegations of sexual assault and harassment against CEO Christian Lanng, who was promptly dismissed.