Finastra launches supply chain finance platform for banks

Finastra has launched a supply chain finance platform for banks that links with its Trade Innovation and Loan IQ systems.

The new offering, Finastra Supply Chain Finance, is aimed at banks seeking to expand working capital programmes across trade, lending and supplier finance. It covers buyer and supplier acquisition, onboarding, fulfilment, servicing, risk management and secondary market distribution.

The launch adds a new layer to Finastra's existing trade finance and lending software portfolio. It also extends the group's efforts to connect products through its Nexus API suite, which links the new platform with Trade Innovation and Loan IQ.

The system is designed as an end-to-end platform for managing supply chain finance activity. It connects with enterprise resource planning systems and other trade ecosystem partners, while providing data for credit decisions and portfolio oversight.

Banks can use the platform to manage limits, exposures and information across trade finance, letters of credit, guarantees, loans and supply chain finance. It also supports automated asset distribution in the secondary market, including pricing, limit management and reconciliation.

Risk controls are another part of the product design. The platform includes fraud detection using artificial intelligence, compliance screening and eligibility monitoring within operational workflows.

The system can support large volumes of activity, including thousands of counterparties and millions of invoices. It is available through a range of deployment models, from on-premise installations to software-as-a-service.

Working capital push

The launch reflects continued investment in Trade Innovation and Loan IQ, both established parts of Finastra's banking software portfolio. The company is positioning the new product as part of a broader effort to bring trade, lending and supply chain finance into a single commercial and risk management framework.

Trade Innovation is Finastra's digital trade finance platform, used by financial institutions to automate workflows and manage trade-related processes. Finastra is developing it into a modular, cloud-ready and API-first system.

That approach comes as banks face pressure to improve returns from working capital products while managing compliance demands and operational complexity. Supply chain finance remains a focus for lenders seeking fee income and deeper corporate relationships, but the market has also come under closer scrutiny over controls, visibility and risk distribution.

Finastra's latest product is intended to address that environment by bringing together functions often handled across separate systems. By linking trade finance, lending and supply chain finance data, banks may gain a broader view of customer exposure and programme performance.

One area of emphasis is speed to market. Pre-built connectivity to corporate systems, ecosystem partners and Finastra's own software is intended to shorten implementation times for banks introducing new working capital products.

Vinay Mendonca, Head of Product, Trade Supply Chain Finance and Corporate Channels at Finastra, outlined the company's view of demand in the market.

"Banks are looking for ways to bring new working capital solutions to market faster to capture new revenue streams delivered through STP journeys, and lower costs, while addressing operational risks and regulatory complexity," said Vinay Mendonca, Head of Product, Trade Supply Chain Finance and Corporate Channels at Finastra.

He also linked the release to the development of Finastra's wider trade platform.

"By combining new supply chain finance capabilities with Trade Innovation and Loan IQ, we're enabling banks to take a more connected approach to working capital. This launch marks an important milestone in the evolution of our Trade Innovation platform as we look to bring more API, AI and cloud-led innovation to the market, leveraging our deep expertise in the trade domain, to help institutions innovate and grow," said Mendonca.