INDUSTRY WATCH
Finastra and partners digitalize supply chains for wholesalers and retailers
Mastercard and Asian Development Bank , in partnership with Finastra , build multi-stakeholder alliance to digitalize supply chains for wholesalers and retailers .
Mastercard and its partners N-Frnds ,
SGeBIZ and Finastra have formed an alliance with the support of the Asian Development Bank ( ADB ) to create technology solutions to drive greater digital efficiency across the retail supply chain in Asia and increase wholesalers ’ access to credit .
“ These unprecedented times underscore the importance of building an inclusive , sustainable digital economy , including through the application of technology to digitize trade , which can make it easier for businesses to participate in global supply chains ,” said Michael Froman , Vice-Chairman and President , Strategic Growth for Mastercard . “ Innovative partnerships like this one can support the agility and resilience of supply chains , accelerating access to finance and improving efficiency .” to financing . Mastercard has responded by developing a collaborative market-leading solution with SGeBIZ , Finastra and N-Frnds . The program will start in Indonesia with 500 retailers and aims to build to 5,000 retailers by the end of Q1 2021 .
“ COVID-19 has had an adverse impact on the global supply chain and these collaborative solutions are critical to ensuring grocery stores stay stocked , pharmacies have access to medicines and people can buy the daily goods they need ,” said Safdar Khan , Divisional President , SEA Emerging Markets Mastercard . “ Mastercard is proud to work with likeminded partners to integrate digital payments with the flow of commerce to deliver solutions .”
Ahmed Saeed , Vice President for East Asia , Southeast Asia and the Pacific , ADB , said : “ ADB has been working closely with the Government of Indonesia in its efforts to alleviate the impact of the Coronavirus disease ( COVID-19 ) pandemic , including through the US $ 1.5 billion financing approved in April 2020 . Our partnership with Mastercard and its alliance partners in the pilot digital supply chain project will provide critical access to finance to affected MSMEs and immediate assistance to keep the food and essential goods supply chain running .” •
The global pandemic and accompanying economic impact have severely disrupted supply chains and trade networks .
The pandemic has also reduced control over cash flow and access to credit . Even before COVID-19 , the ADB estimated there was a US $ 1.5 trillion funding gap in 2018 . The International Chamber of Commerce estimates a potential US $ 2 trillion to US $ 5 trillion shortfall in trade financing through 2021 if demand returns to the global economy .
As a result , it is vital for the public and private sectors to come together to enable a faster and more efficient shift towards digitalization across global supply chains , trade and access
74 INTELLIGENTCIO www . intelligentcio . com