Demica, a prominent fintech firm specialising in supply chain finance, has announced a significant milestone with its assets under administration (AuA) exceeding $40 billion. This figure corresponds to over $240 billion in invoice flow processed throughout the year. According to the company, this growth demonstrates an impressive compound annual growth rate of over 40% for assets on the Demica platform since 2016, highlighting a surging global demand for supply chain finance solutions.
Demica’s technology manages a substantial volume of financial transactions, overseeing more than 52 million open invoices at any given time. The platform supports a variety of supply chain finance products, including trade receivables finance, securitisation, payables finance, and dynamic discounting. This wide array of services allows Demica to cater to diverse client needs, facilitating the execution of large and complex financial programmes.
A cornerstone of Demica’s success has been its strategic partnerships with leading trade banks such as HSBC, Credit Agricole, Standard Chartered, ING, BBVA, Lloyds Bank, Afreximbank, and the Commercial Bank of Dubai. These collaborations are crucial for Demica's ongoing growth, as they initiate new programmes while transitioning existing assets to the Demica platform.
In addition, a notable trend contributing to Demica's expansion is an increasing number of corporates seeking direct collaboration for their working capital needs. By focusing on monetising large receivables portfolios, Demica has secured partnerships with reputable clients, including Accel, Impellam, HeadFirst Group, and Jardine Norton. These corporations harness Demica’s platform to effectively manage their Receivables Finance and Securitisation programs.
As the global appetite for supply chain finance solutions continues to escalate, Demica positions itself as a preferred partner for both banks and corporates eager to leverage these financial products. Speaking to Fintech Finance, Demica CEO Matt Wreford stated, “These figures reflect Demica’s position as a long-term partner to institutions in this sector, supporting sustained growth as global appetite for supply chain finance continues to expand. More and more trade banks see our technology as a route to provide increasingly innovative products and services to their customers, while our corporate clients benefit from the scale and flexible liquidity which has been more necessary than ever in 2024.”
Demica's ongoing success illustrates the transformative impact of fintech innovations on traditional banking practices and the increasing reliance of corporations on advanced financial solutions.
Source: Noah Wire Services