Indian Bank Joins Veefin’s PSBXchange Platform to Revolutionize MSME Financing in India

In a landmark move aimed at reshaping the MSME credit ecosystem in India, Indian Bank has officially signed up for the world’s largest unified Supply Chain Finance (SCF) platform, PSBXchange, powered by Veefin Solutions Limited. The announcement was made by Veefin on July 4, 2025, via a regulatory filing to BSE Limited under Scrip Code: 543931.

This development marks a significant technological and financial milestone as India accelerates its financial inclusion efforts by leveraging digital infrastructure.

What is PSBXchange?

PSBXchange is a revolutionary unified SCF platform created by PSB Alliance and developed by Veefin Solutions, a digital supply chain finance technology provider. The platform is poised to become the common digital bridge between banks, NBFCs, fintechs, B2B marketplaces, and small businesses, streamlining the way MSME lending and invoice financing are managed in India.

Described as a "global-first" by industry insiders, PSBXchange integrates:

• Core banking systems of multiple lenders

• Fintech platforms

• Digital marketplaces

• Accounting service providers

• New-age data and analytics platforms

This enables real-time loan processing, risk assessments, and faster disbursals for MSMEs, a segment often underserved in traditional banking.

The Role of Indian Bank in the New Ecosystem

Indian Bank, a key public sector lender, joins this consortium of forward-thinking institutions to enhance its digital SCF offerings. With this partnership, Indian Bank aims to:

• Expand credit access to MSMEs, particularly those without strong collateral

• Digitize and automate its MSME lending process

• Improve risk management using fintech-driven data analytics

• Be at the forefront of inclusive digital finance transformation

This move reflects the bank’s broader strategic push to align with Government of India’s goals under programs like Digital India and Atmanirbhar Bharat.

Why This Is a Game-Changer for MSMEs

The Micro, Small, and Medium Enterprises (MSME) sector, which contributes to over 30% of India’s GDP and 45% of exports, has long been plagued by limited access to credit, delayed payments, and manual processes.

With the PSBXchange platform:

• MSMEs can access working capital against invoices in real-time

• Banks and NBFCs get a risk-verified, digitized pipeline of borrowers

• All stakeholders work through a single digital interface, reducing fraud, duplication, and delays

• The system promotes democratization of credit, allowing small players in Tier 2 and Tier 3 cities to secure loans

Features of the Veefin-Powered SCF Platform

Here are some of the key highlights of the Veefin-developed PSBXchange:

• Interoperable architecture connecting multiple banks and fintechs

• E-KYC, eSign, and API-based data exchange for quick onboarding

• Automated credit scoring using AI

• Real-time invoice validation through integration with e-invoicing and GSTN

• Multi-tier supply chain management allowing deep financing reach

• Embedded risk mitigation tools using real-time supplier-buyer networks

Statements from the Companies (as per filing)

The filing to BSE by Urja Thakkar, Company Secretary & Compliance Officer of Veefin Solutions Limited, stated:

“In a significant step towards transforming MSME financing in India, Indian Bank has signed up for the world’s largest unified Supply Chain Finance (SCF) platform, PSBXchange by PSB Alliance, developed and powered by Veefin Solutions.”

This underlines Veefin’s leadership position in digital SCF enablement and Indian Bank’s proactive embrace of fintech partnerships.

Industry-Wide Implications

This initiative aligns with the broader digitization push by RBI, Ministry of Finance, and SIDBI to:

• Boost credit penetration in underserved segments

• Promote financial inclusion for unbanked MSMEs

• Enable faster credit cycles, especially in post-pandemic economic recovery

Banks that join platforms like PSBXchange are expected to improve turnaround times for small-ticket loans from days to hours, drastically reducing friction for borrowers.

Veefin Solutions: Driving Digital Credit Infrastructure

Veefin Solutions Limited, formerly known as Veefin Solutions Private Limited, is a leading player in supply chain finance software and solutions. The company helps:

• Banks digitize SCF workflows

• NBFCs and fintechs build scalable lending tech stacks

• Governments and alliances (like PSB Alliance) launch inclusive credit ecosystems

Veefin’s platform is already in use by several Indian and international lenders, reinforcing its robust technology credentials.

What’s Next?

The signing of Indian Bank onto the platform is likely to prompt other public and private banks to accelerate their onboarding processes.

In the coming quarters, we may witness:

• Further bank integrations onto PSBXchange

• Rollout of mobile-first MSME loan solutions

• Inclusion of alternative credit scoring models

• Deeper reach into semi-urban and rural MSME clusters

Conclusion

The collaboration between Indian Bank and Veefin Solutions via PSBXchange could be transformational for MSME lending in India.

By digitizing, standardizing, and democratizing access to credit, this platform can empower millions of small businesses that form the backbone of India's economy.

As India marches toward becoming a $5 trillion economy, such public–private digital partnerships will be pivotal in bridging the credit gap, fostering innovation, and ensuring that no small business is left behind.

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