According to Finextra, this partnership is a significant step toward providing financial services directly into e-commerce platforms.

The goal of the collaboration is to immediately incorporate HSBC's trade, finance, and payment services into online marketplaces, such as Tradeshift's B2B network. By integrating these services inside e-commerce and marketplace settings, the company intends to expedite financial access for businesses, particularly SMEs, allowing them to manage payments and get funding more simply.

One of the biggest banks in the world, HSBC offers a wide range of financial services and solutions for international markets. It is renowned for conducting extensive business in investment, retail, and commercial banking. Conversely, Tradeshift is a well-known FinTech company that specializes in B2B markets and assists businesses in digitizing their supply chain operations via a network built on the cloud.

HSBC has dubbed the recently established joint venture SemFi, and it will start off in the UK. SME suppliers on e-commerce platforms will have access to HSBC's digital invoice financing through this platform. The project will also supply HSBC virtual cards, which will provide security and flexibility when it comes to controlling company expenses.

Vinay Mendonca will serve as CEO and Shehan Silva as COO of the new company, which is being led by important leaders from within HSBC.

"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," stated Vinay Mendonca, CEO of SemFi by HSBC.

He went on, "SemFi by HSBC seeks to provide such integrated capabilities to support the expansion of enterprises. It will aim to provide our corporate clients and e-commerce partners with the best of both worlds: an international bank's reach and experience combined with the startup spirit of technology.

This alliance comes after HSBC invested $35 million in Tradeshift in the previous year, which was a big step toward increasing the company's capabilities in digital finance. It should be noted, though, that Tradeshift was involved in scandal the previous year when Christian Lanng, the CEO, was fired due to claims of harassment and sexual assault.