B2B BNPL: Vgradnja bank v dobavno verigo (Sandeep Nambiar)

Fintechs today own the growing B2B Buy Now Pay Later space entirely, and control 10-15% of the overall supply chain finance market. It’s time for banks to embed themselves deeper in the supply chain.

Fintech-enabled B2B buy now pay later (BNPL) has garnered much attention since last year. Embedded within the payments experience of merchant to merchant transactions, B2B BNPL is collateral-free, short-term credit, that is solving the critical problem of
access to supply chain finance, especially for micro, small and medium enterprises (MSMEs).  

The repayment terms that the fintech platforms offer vary vastly across industries, ranging from a fortnight to a year. But the critical underlying innovation of the B2B BNPL is the seamless, completely digital credit-risk assessment model that makes it
mogoče.

Omogoča priložnosti B2B BNPL

The widening trade finance gap is a significant factor in the renewed focus on B2B BNPL. The global trade finance gap reached USD 1.7 trillion in 2020, 10% of global trade volume. This is especially harsh on MSMEs as the financing rejection rates for this
segment stand at 40%; a 2017 World Bank study found that about 65 million such businesses are credit constrained. With MSMEs playing an increasingly important role in overall global trade, there is a clear need for alternative and digitally-delivered supply
chain finance solutions that can address access and risk modeling for MSME businesses.

In terms of enablers, the accelerated growth in global B2B e-commerce is a strong tailwind for B2B BNPL, with transactions valued at USD 6.9 trillion in 2021. The sector is expected to expand at 18.7% CAGR between 2022 and 2028, touching USD 25.65 trillion
by 2028. Rapid adoption of digital tools by SMEs is another powerful enabler. According to OECD’s Global Business Surveys, 70% of SMEs have accelerated their use of digital technologies post-COVID. This fast paced digitalisation of SMEs is helping fintechs
roll out alternative credit-assessment models based on access to business data such as buyers’ previous purchases, vintage payments history, cash flow, and other consumer data points.

Exhibit 1 depicts the factors contributing globally to the growing B2B BNPL opportunity, which fintechs entirely own today. Banks traditionally offered supply chain finance products; however, B2B BNPL is not yet their native capability as they lack automated
credit decisions and embedded experience capabilities. As of last year, McKinsey reports that fintechs have pulled away annual revenues worth USD 8 to 10 billion from traditional lenders, controlling about 10-15% of the supply chain finance (SCF) market.

V tem članku razumemo, zakaj je B2B BNPL uspešen kot produkt in kakšne so nekatere poteze bank po vsem svetu, da bi vstopile na ta trg.

Kaj rešuje B2B BNPL, ki ga vodi fintech?

According to a recent Barclays report, 3 out of 5 SMEs currently face late payments on their invoices, leading to cash constraints and weighty issues in the underlying cash flow. Studies further indicate that cash flow challenges kill almost 50% of SMEs
within the first five years of inception. The Association of British Recovery Professionals stated, “over a fifth of corporate insolvency is the result of delayed payments for goods and services.”

Several experts have evaluated why traditional supply chain finance (SCF) solutions cannot address this access and risk assessment challenge regarding SMEs. For one, many SCF providers still focus on larger corporates and recurring, big-ticket purchases.
It precludes smaller, less well-financed companies from attempting to access such solutions. 

Most SCF solutions are yet to implement innovations like APIs, which could open up access to buyer data and thus enable better risk assessments. This critical step can help make financing options cheaper and more accessible. In many scenarios, less than
50% of the total spend is eligible for financing with traditional risk assessment, with the actual uptake being just 60-70% of this amount. 

Drugi vidik je, da ima le nekaj bančnih in nebančnih finančnih subjektov trenutno celovito strokovno znanje SCF in dostop do internih procesov. To pa omejuje dostop do financiranja dobavne verige za podjetja z računi v teh institucijah.  

Fintech je razumel te izzive. Osredotočeni so na reševanje tako dostopa kot boljše ocene kreditnega tveganja za podjetja z naslednjimi metodami:

• Vdelava dostopa do možnosti financiranja na mestu nakupa; na primer,
  Resolve s sedežem v ZDA, a B2B spin-off from consumer BNPL provider Affirm, allows merchants to embed ‘net terms invoicing,’ a buy-now-pay-later option as part of their check-out process. Buyers using the option are redirected to the Resolve portal for onboarding
  or signing in. Resolve assures a ‘quiet credit check’ of the buyers’ creditworthiness within hours.

• Izkoriščanje rešitev finančne tehnologije, kot so združevanje računov, e-davki in e-izdajanje računov, za reševanje zapletenosti v zvezi z vkrcanjem, sklepanjem pogodb in plačili;
  Billie iz Berlina offers B2B buyers BNPL options for all their business-related expenses. Buyers can create a profile on the Billie Buyers’ portal and track all their expenses and payments. When checking out their purchases at any merchant
  site that offers the Billie BNPL option, buyers can check out with real-time customer verification.

• Samodejne in tekoče kreditne odločitve na podlagi dostopa do poslovnih in finančnih podatkov kupca, kreditne zgodovine, zgodovine plačil in drugega;
  Evropski B2B BNPL ponudnik Hokodo izvaja preverjanje kreditne sposobnosti in goljufij v realnem času, medtem ko kupci nakupujejo na platformi trgovca. Na blagajni so kupcem predstavljene le tiste možnosti, za katere so kvalificirani. 

Druga prednost B2B BNPL je, da malim in srednje velikim podjetjem omogoča ustvarjanje boljših kreditnih profilov, če pravočasno odplačujejo BNPL.

Kako lahko banke sprejmejo B2B BNPL?

Banks have natural advantages of access to low-cost capital and the necessary regulatory infrastructure in place when it comes to supply chain finance. Several global banks have taken note of the B2B BNPL disruption, and have entered into partnerships with
fintechs or launched their solutions for this space (Exhibit 2).

Deutsche Bank sodeloval s fintech Credi2 za lansiranje izdelka BNPL z belo oznako za spletne trgovce in trge e-trgovine v Nemčiji.
Raisin Bank, znano po svojih rešitvah Bančništvo kot storitev (BaaS), že sodeluje s plačili B2B
Mondu zagotoviti osredotočene rešitve BNPL trgovcem B2B, medtem ko
HSBC je odprl svoje API-je B2B BNPL na celinski Kitajski. API-ji omogočajo podjetjem, da posojilodajalčeve ponudbe B2B BNPL vgradijo v svoje platforme za e-trgovino, zaradi česar je dostop do posojil hitrejši in bolj nemoten.

Kot BANKINGSTACK omogočamo bankam, da sprejmejo zmogljivosti B2B BNPL v dveh modelih: 

• kot možnost plačila, vdelana v digitalni bančni račun kupca, in

• kot možnost financiranja na računu za nakup, ki je na voljo dobaviteljem, ki želijo dostopati do takojšnjih plačil po naročilnici. 

V obeh primerih je temeljni model bonitetne ocene tisti, ki deluje kot ključni dejavnik. V primerjavi s tradicionalnimi modeli ocenjevanja tveganja lahko kreditni mehanizem BANKINGSTACK bankam zagotovi naslednje zmogljivosti:

• Automated credit assessment with minimal or zero documentation requirements can help in faster credit disbursal to businesses. Credit assessment depends mainly on direct access to business data like aggregated balances, sales, purchase orders, inventory,
  receivables, payables, payment history, order delivery status, and many other factors. BANKINGSTACK also integrates with accounting systems used by end-user’s to get direct access to past and current business data.

• Trdnejša kreditna ocena kot tradicionalni model, saj mehanizem spremlja večje število spremenljivk in lahko izvaja stalne ocene o tem, kako in kdaj bo to vplivalo na kupčevo sposobnost odplačevanja.

• Prilagodljiva bonitetna ocena se s spreminjanjem poslovne uspešnosti ali trendov stabilnosti odraža kot spremembe kreditnih limitov ali pogojev odplačevanja, ki so ponujeni kupcem. Ustvari lahko optimizirane modele, boljše od tradicionalnih in reaktivnih modelov kreditne ocene.

• Uporaba bremenitev na podlagi uporabe, kot jih vidimo pri kreditnih karticah, pomaga podjetjem pri obdelavi več naročil, s čimer poveča promet zalog in hkrati nadzoruje skupne stroške financiranja.

A B2B pharma marketplace for manufacturers, distributors, and retailers recently partnered with a leading Indian bank to embed our B2B BNPL solution on their platform. This solution allows retailers access to collateral-free credit basis on their cash flow
and exclusive benefits from distributors on the platform. It sometimes includes access to 15-day interest-free credit on billing periods and long-duration low-interest rates.   

Banks can embed themselves into the heart of the customer’s trade for corporate banking customers while enhancing their overall lending play. B2B BNPL also helps banks access high-growth, thin-filed businesses in a low-risk context. Finally, data shows that
B2B BNPL has had an exponential growth impact on merchants, delivering several improvements in conversions and order volumes. By becoming a key driver for this growth, banks can position themselves advantageously in an increasingly fragmented market. 

Reference:

1. https://www.adb.org/news/global-trade-finance-gap-widened-17-trillion-2020
2. https://www.mckinsey.com/industries/financial-services/our-insights/reconceiving-the-global-trade-finance-ecosystem
3. https://www.businesswire.com/news/home/20211203005471/en/The-Global-B2B-E-Commerce-Market-Size-is-Estimated-to-Reach-USD-25.65-Trillion-Expanding-at-a-CAGR-of-18.7-from-2021-to-2028.—ResearchAndMarkets.com
4. https://www.oecd.org/industry/smes/PH-SME-Digitalisation-final.pdf
5. https://www.mckinsey.com/industries/financial-services/our-insights/buy-now-pay-later-five-business-models-to-compete
6. https://www.prove.com/blog/how-fintech-modernizes-sme-supply-chain
7. https://home.barclays/news/press-releases/2022/01/three-in-five-uk-businesses-are-owed-money-from-late-payments–f/
8. https://www.prove.com/blog/how-fintech-modernizes-sme-supply-chain
9. https://www.mckinsey.com/~/media/mckinsey/industries/financial%20services/our%20insights/accelerating%20winds%20of%20change%20in%20global%20payments/chapter-3-supply-chain-finance-a-case-of-convergent-evolution.pdf
10. https://www.pymnts.com/bnpl/2022/deutsche-bank-partners-with-credi2-to-pilot-white-label-bnpl-product/
11. https://www.pymnts.com/news/b2b-payments/2022/today-in-b2b-raisin-bank-teams-mondu-bnpl-tool-small-businesses-need-ecommerce-insurance/
12. https://develop.hsbc.com/api-overview/trade-finance-b2b-buy-now-pay-later