HSBC Holdings plc has unveiled SemFi by HSBC, a new joint venture with Tradeshift, a global B2B trade network, aimed at delivering seamless embedded finance solutions to business clients.
SemFi will integrate HSBC’s payment, trade, and financing services across various e-commerce and marketplace platforms, including Tradeshift’s extensive B2B network.
The venture is set to commence operations in the United Kingdom, enabling small and medium-sized enterprises (SMEs) on e-commerce platforms to access digital invoice financing through HSBC’s streamlined services.
Additionally, SemFi will offer SMEs enhanced flexibility and security in spend management via HSBC’s virtual card solutions.
“Businesses are increasingly looking for seamless financial solutions that are embedded within their e-commerce journeys, so they can access these when and where they need them,” said Vinay Mendonca, Chief Executive Officer of SemFi by HSBC.
“SemFi by HSBC aims to deliver such embedded capabilities to help businesses grow. It will seek to bring the best of both worlds to our business customers and e-commerce partners; a startup technology mindset coupled with the global scale and expertise of an international bank.”
The venture is led by a team of senior HSBC executives, including Mendonca as CEO and Shehan Silva as Chief Operating Officer (COO). Mendonca will report to Jo Miyake, Interim CEO of Global Commercial Banking at HSBC, who has joined the SemFi board.
HSBC has been progressively enhancing its embedded finance capabilities to meet the growing demand from business customers for integrated financial services within their e-commerce activities.
The launch of SemFi underscores HSBC’s commitment to innovation and supporting the digital transformation of businesses.
HSBC supports approximately 1.3 million businesses worldwide and is recognized as the world’s largest trade bank, facilitating over $800 billion in trade flows annually.
Tradeshift, on the other hand, manages over $260 billion in annual gross merchandise value for one million business users on its platform. The global embedded finance market was valued at USD 82.48 billion in 2023 and is expected to grow by 35% annually over the next five years.
SemFi is structured as a technology company and will not operate as a banking entity. Clients will be onboarded by HSBC, leveraging the bank’s balance sheet for financing solutions.
