Following this announcement, the bank has developed Invoice Finance in order to address the diversifying financing needs of its customers and users. This solution was developed to allow AEON Bank to receive real-time information on business transactions between the AEON Group companies and their suppliers.
By processing this information into data usable for loan applications, the financial institution will have the possibility to provide financing to suppliers at the order stage from AEON Group firms and enterprises. In addition, the company will continue to focus on the process of remaining compliant with the regulatory requirements and laws of the industry.
The new solution was designed to utilise a system that was built on the iQuattro platform, provided by NTT DATA Corporation, which promotes information sharing between companies. The system also enables AEON Bank to collect and aggregate the vast amount of daily order information and data that is held by AEON Group companies on a customer-by-customer, payment due date basis, while also utilising it for financial transactions and payments.
The process is expected to allow suppliers to easily apply for loans through the use of Internet banking for corporate clients and receive loans at low interest rates, generally without collateral or guarantees. At the same time, while the average transaction term across all industries is about 60 days, leveraging this solution allows suppliers to receive funds in as little as three business days from the order date. This is expected to optimise the process of cash flow for suppliers.
AEON Bank is expected to initially offer this tool to suppliers of KOYO, a supermarket chain that operates in the Kinki region under the AEON Group. For future plans, the financial institution is set to expand the solution to other AEON Group companies and firms, while also providing support to suppliers across the nation.
Furthermore, the bank is exploring the utilisation of multiple commercial flow data from AEON Group’s logistics, production areas, and more. This will focus on not only the expansion of financial services but also the development of optimised value through a supply chain approach that combines commerce and finance, including the process of contributing to CO2 reduction.
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