According to the report by Expert Market Research (EMR), the global supply chain finance market share reached a value of USD 6.4 billion in 2022. Aided by the increasing need for efficient and seamless transactions across the supply chain and growing acceptance of fintech in traditional banking operations, the market is projected to further grow at a CAGR of 8.7% between 2023 and 2028 to reach a value of USD 10.56 billion by 2028.
Supply chain finance (SCF) is a set of technology-based solutions aimed at improving the financial efficiency of the supply chain. SCF allows suppliers to sell their invoices or receivables to financial institutions at a discount, providing them with immediate liquidity while enabling buyers to lengthen their payment terms. This process reduces the cost of capital, enhances cash flow, and improves operational efficiency for all parties involved.
The surge in demand for seamless and efficient transactions across the supply chain is driving the global supply chain finance market growth. As businesses continue to grapple with liquidity and cash flow challenges, the adoption of SCF solutions offers a viable and flexible way to manage these challenges while ensuring suppliers’ financial health. Moreover, the growing need for transparency and traceability in the supply chain is further fuelling the adoption of SCF solutions.
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The infusion of fintech into traditional banking operations has also given impetus to supply chain finance market growth. Fintech companies, with their advanced technology platforms, provide innovative and streamlined financial solutions that enhance the efficiency and effectiveness of supply chain operations. These platforms facilitate real-time tracking, analytics, and predictive modelling, thereby reducing risk, improving cash flow management, and optimising the overall supply chain performance.
Additionally, the advent of blockchain technology in supply chain finance has opened new avenues for supply chain finance market expansion. Blockchain’s ability to offer a secure, transparent, and tamper-proof platform facilitates seamless transactions across the supply chain, reducing the risk of fraud and increasing the trust among involved parties. This technological advancement is expected to further drive the SCF market in the coming years.
Moreover, the ongoing digital transformation across industries, coupled with the rapid adoption of cloud-based solutions, is set to further propel the supply chain finance market development. Cloud-based SCF solutions provide a scalable, flexible, and cost-effective option for businesses, enabling them to manage their financial operations effectively, regardless of their size or complexity.
Market Segmentation
The market can be divided based on provider, offering, application, end user, and region.
Market Breakup by Provider
- Banks
- Trade Finance House
- Others
Market Breakup by Offering
- Letter of Credit
- Export and Import Bills
- Performance Bonds
- Shipping Guarantees
- Others
Market Breakup by Application
- Domestic
- International
Market Breakup by End User
- Large Enterprises
- Small and Medium-sized Enterprises
Market Breakup by Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
Competitive Landscape
The EMR report looks into the market shares, plant turnarounds, capacities, investments, and acquisitions and mergers, among other major developments, of the global supply chain finance companies. Some of the major key players explored in the report by Expert Market Research are as follows:
- Asian Development Bank
- HSBC Group
- Standard Chartered Holdings Limited
- JPMorgan Chase & Co.
- Citigroup, Inc.
- DBS Bank Limited
- Bank of America Corporation
- Orbian
- BNP Paribas
- NatWest Group
- Mitsubishi UFJ Financial Group
- Others
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