On Monday, U.S. fintech startup Strands announced it is teaming up with Mastercard to provide issuing banks with an integrated platform of digital cash management and commercial payment tools that is specifically designed to benefit small-to-medium enterprises (SMEs).
According to Strands, the Strands Business Financial Management (BFM) will leverage Mastercard’s digital payment technology to deliver on-demand solutions helping these businesses to better understand their finances, project their short-term cash flow and see personalized recommendations for customized solutions. While sharing more details about the platform, Erik Brieva, Strands’ CEO, stated:
“SMEs are the backbone of the global economy and represent one of the biggest potential sources of revenue for banks; yet they are typically offered banking solutions designed with the retail customer in mind. Our in-house research shows that 61 percent of SMEs place cash flow management as one of their top three priorities to help them secure their financial future, but the banking solutions offered today by issuer banks do not address these unique requirements.”
Strands also reported that the platform’s solution offers a comprehensive set of tools and insights to empower SME owners to achieve better and more efficient management of their cash flow and working capital needs.
“These tools help manage accounts payables, receivables, budgets and provisions and are all powered by a layer of AI and machine-learning models that help users to navigate the financial needs of their businesses. Strands brings the power of AI-enabled solutions to the SME user to allow them predict income, expenses, forecast balances, receive personalized alerts and notifications and recommend products and/or services that meet the immediate needs of their business.”
The fintech went on to note that the combined Strands’ SME platform and Mastercard payment technology is designed to empower customers across the globe. Brieva then added:
“Once more, Strands is showing a true determination to become the preferred FinTech partner for banks by developing world-class software and alliances that create value and contribute to the success of these financial institutions.”