Alliances between financial institutions and fintech are the alternative for firms seeking to expand their reach, according to data from Finnovista around 57% of fintech collaborate with some other traditional financial institution.
Financial technology companies seek to combine the experience and support of banking institutions.
In this sense, eFactor Network, an electronic commerce platform specialized in factoring, announced an alliance with Invex Banco to promote financing for Mexican companies and their suppliers.
“This strategic alliance between Invex Banco and eFactor will allow us to offer our clients a new agile and secure financing option so that large and medium-sized companies can support their domestic and foreign suppliers, and thus increase their working capital and continue having an optimal productive cycle”, commented Liliana González Topete, director of financing products at Invex Banco.
The platform, which connects factoring supply and demand, indicates that they have provided more than 30,000 million dollars in financing since its inception, in 2009. They also point out that in 2022 they supported a financing volume of more than 6,500 million dollars.
According to information from the Mexican Association of Financial Factoring and Similar Activities (Amefac) and members, which represent 90% of financial intermediaries in Mexico, during the fourth quarter of 2022 they operated a volume that amounted to 659,826 million pesos, while eFactor through its platform facilitated the operation of 131,000 million pesos in the same period.
“National and foreign banks have shown a significant appetite for financing suppliers by electronic means, we especially see it in factoring because it is a credit with a very important and short-term revolvency, so there is interest in providing this type of credit”, commented Héctor de la Garza, CEO of eFactor Network.
According to what was mentioned by the firms, Invex Banco has a greater participation in the placement of credit within the industrial sector with 37.3% and in the commerce sector that amounts to 26.5 percent.
electronic factoring
Regarding factoring operations by electronic means, in Mexico there are 1,788 firms that carry out this type of operation, according to figures from Amefac as of December 31, 2022.
Both firms expect the alliance to increase financing possibilities.
For its part, eFactor pointed out that the cooperation of both entities allows it to diversify funding for companies within its electronic commerce platform that connects more than 150 corporations with 35 banks and other entities that seek to place credit such as Multiple Purpose Financial Companies. .
Víctor Manuel de la Cruz, director of financial intermediaries at eFactor, commented that they hope that the work of both platforms will open new financing channels to facilitate payments to company suppliers.
