AEON Bank, a subsidiary of AEON Financial Service, has launched a new “supply chain finance” service at the beginning of August, to meet the financing needs of its customers.
The bank has developed “Invoice Finance” to address the diversifying financing needs of its customers. This service allows AEON Bank to receive real-time information on business transactions between AEON Group companies and their suppliers. By processing this information into data usable for loan applications, the bank can provide financing to suppliers at the order stage from AEON Group companies.
This service utilizes a system built on the iQuattro® platform, provided by NTT DATA Corporation, which promotes information sharing between companies. The system enables AEON Bank to collect and aggregate the vast amount of daily order data held by AEON Group companies on a customer-by-customer, payment due date basis and utilize it for financing transactions.
This allows suppliers to easily apply for loans through internet banking for corporate customers and receive loans at low interest rates, generally without collateral or guarantees. Furthermore, while the average payment term across all industries is about 60 days, using this service enables suppliers to receive funds in as little as three business days from the order date, optimizing cash flow for suppliers.
AEON Bank will initially offer this service to suppliers of KOYO, a supermarket chain operating in the Kinki region under the AEON Group. In the future, the bank will expand the service to other AEON Group companies and provide support to suppliers nationwide.
Furthermore, AEON Bank is exploring the utilization of various commercial flow data from AEON Group’s logistics, production areas, etc. The aim is not only to expand financial services but also to create unique value through a supply chain approach that combines commerce and finance, such as contributing to CO2 reduction.
AEON Bank will continue to proactively develop and implement solutions that contribute to improving corporate value and solving issues for a wide range of stakeholders, thereby contributing to the realization of a sustainable society.