SBP gives banks six-month time to adopt Digital Supply Chain solutions
In a move to enhance access to finance for small and medium enterprises (SMEs), the State Bank of Pakistan (SBP) has mandated banks to adopt digital solutions for supply chain finance (SCF) within a six-month timeframe. This directive aims to streamline SCF operations, leveraging technology to facilitate SMEs' financial accessibility.
Outlined in a circular, the SBP emphasizes the utilization of technology to establish efficient SCF processes, equipped with adequately trained personnel and robust systems. Banks are tasked with developing and offering digital SCF products to SMEs, as well as digitizing retail payments, enhancing the overall efficiency and effectiveness of financial transactions.
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Furthermore, banks are encouraged to either develop their proprietary digital solutions for SCF or collaborate with fintech firms and service providers to deliver these services effectively. The implementation of Digital Supply Chain Finance (DSCF) solutions is anticipated to not only broaden SMEs' access to finance but also drive operational efficiencies, cost reductions, and bolster risk management frameworks within the banking sector.
This strategic initiative by the SBP underscores its commitment to fostering innovation and inclusivity within Pakistan's financial landscape, paving the way for a more resilient and digitally-enabled economy.
Source: The News