KARACHI: State Bank has directed banks to adopt digital supply chain finance solutions.
State Bank has directed commercial banks to develop and implement digital solutions for supply chain finance within six months with the aim of increasing access to finance for small and medium enterprises. Thus, it will also be possible to make full use of technology for the digitization of retail payments.
Instructing banks to set up an effective supply chain finance department, the State Bank has said that the supply chain finance department will develop digital SCF products for SMEs. Banks can also partner with a fintech or service provider to provide their own digital supply chain finance for CFs.
According to State Bank, DSCF solutions will increase access to finance for SMEs. SMEs will also improve operational efficiency, reduce costs and strengthen risk management practices.
