Shinhan Bank's operation in India has launched a “digital factoring loan” in India.
The innovative product helps companies secure operating funds easily. The bank purchases accounts receivable generated through transactions between local blue-chip buyers and sellers. It is differentiated from other products in that the whole process is carried out on a digital platform.
Shinhan Bank India has established a strategic partnership with India’s Mynd Solutions to operate an optimized digital platform. It plans to expand the partnership to include corporate business transaction settlement finance in the future.
The Indian factoring market is expected to grow to US$5 billion (5.62 trillion won) within two years as the Indian government requires large companies to become a member of the platform led by the Central Bank of India. An official from Shinhan Bank said, “The amount of digital factoring loans is expected to far surpass US$100 million (112.40 billion won) at the end of this year.”