In a move to boost access to finance for small and medium-sized enterprises (SMEs) and modernize retail payments,SBP has directed banks to develop and implement digital solutions for supply chain finance within the next six months.
SBP’s circular emphasizes the importance of establishing dedicated Supply Chain Finance (SCF) functions within banks. These units will require qualified personnel and appropriate technology to design and offer digital SCF products specifically tailored to SMEs.
The central bank has provided banks with the flexibility to develop their own digital solutions or collaborate with fintech companies and service providers to deliver these digital SCF products.
This initiative is expected to not only improve access to financing for SMEs but also enhance operational efficiency, reduce costs, and strengthen risk management practices throughout the supply chain.
