HSBC and business-to-business (B2B) global trade network Tradeshift have launched a new, jointly owned business, dubbed SemFi by HSBC, to focus on the development of embedded finance solutions and financial services apps.
The new technology joint venture (JV) between the parties aims to offer seamless embedded finance solutions to business clients.
SemFi by HSBC will integrate HSBC’s payment, trade, and financing services across various e-commerce and marketplace platforms, including Tradeshift’s own B2B network.
To be initially available in the UK, SemFi by HSBC will enable small and medium-sized enterprises (SME) suppliers using e-commerce platforms to access digital invoice financing from HSBC through a streamlined experience.
The venture will also offer enhanced flexibility and security for SMEs in their spend management through HSBC’s virtual card solutions.
SemFi by HSBC is designed as a technology company. The JV will not operate as a banking entity.
Clients will be onboarded by HSBC, with the bank’s balance sheet leveraged for financing purposes.
SemFi by HSBC CEO Vinay Mendonca said: “Businesses are increasingly looking for seamless financial solutions that are embedded within their e-commerce journeys, so they can access these when and where they need them.
“SemFi by HSBC aims to deliver such embedded capabilities to help businesses grow. It will seek to bring the best of both worlds to our business customers and e-commerce partners; a startup technology mindset coupled with the global scale and expertise, of an international bank.”
HSBC first announced the embedded finance JV with Tradeshift in August last year. In line with this, both parties signed an agreement.
As part of the agreement, HSBC committed to make a $35m investment in Tradeshift in two phases.
Currently, HSBC is said to support approximately 1.3 million businesses across the world by facilitating more than $800bn annual trade flows.
Based in the US, Tradeshift supports more than $260bn of annual gross merchandise value for a million business users on its platform.
