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It may be an open road for open banking as, three years after the rollout of the second Payment Services Directive (PSD2), bank-FinTech collaborations and new initiatives unlocking bank account data continue to flourish. FinTech partners include small business creditrisk analysis company AccountScore and small business data company Codat.
Walford Trade Risk, a trade creditrisk insurance provider, is rolling out a new product designed to help small businesses protect themselves against the risk of non-payment from their corporate customers. ”
The company also pointed to the recent rise of the nostro account, an account owned by a financial institution in another country with funds held in local currency, used to facilitate cross-border settlement. It’s a currency that allows financial institutions to ditch the nostro account and instead keep XRP on their own balance sheets.
Working capital and cash flow optimisation With uncertain times ahead, CFOs today must monitor the impact of price volatility, foreignexchange fluctuations, and interest rate changes, and be able to rapidly revise financial asset positions and protect against increased creditrisks.
India’s FinBox landed an undisclosed amount of pre-Series A funding, reports in Inc42 said this week, with investors at Arali Ventures leading the investment in the creditrisk management technology startup. Funds and accounts advised by T. FinBox plans to use the investment on product research and development.
Before the pandemic, DBS had relentlessly leveraged emerging technologies to help SMEs, especially micro and small enterprises, streamline services and manage creditrisk. SMEs account for 16% of the bank’s business, or approximately $1.5 One of these, Mujer PyME, is a credit facility targeted to women-led SMEs.
Sage has unveiled a new partnership with Satago , a cash management and finance program for small firms and accounting professionals, according to an announcement. FinTech firms Cobase and Ebury are now working together to roll out Ebury's foreignexchange services on Cobase's multi-banking platform, according to a press release.
Many banks won’t take into account a large receivable from a cross-border customer when providing capital to an exporter, an issue Pelletier said not many businesses are always aware of. That’s where connecting banks with key trade information comes into play, he said.
One good recent example is in Ethiopia, where the central bank recently promulgated a number of new regulations that have made the foreignexchange market more competitive. In regard to country comparisons, South Africa is a huge financial market, accounting for US$400 billion. Fourth is Angola, with US$27 billion.
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