The State Bank of Pakistan (SBP) has instructed the banks to develop and implement digital solutions for Supply Chain Finance (SCF) within six months to leverage the technology for increasing the SMEs’ access to finance as well as digitizing the retail payments.
The circular issued by the SBP requires banks to establish an effective Supply Chain Finance function having suitably trained HR and systems to develop and offer digital SCF products to SMEs.Â
The banks have been further advised to either develop their own digital solutions for SCF or partner with any fintech, service providers for providing digital SCF.
The DSCF solutions will not only increase access of SMEs to finance but also improve operational efficiency, reduce costs, and strengthen risk management practices.
