Empowering SMEs with Tech-Driven Trade Finance: How Stenn is Redefining Export Factoring

CXOToday has engaged in an exclusive interview with Bilal Bajwa, Chief Product Officer

How does Stenn leverage technology to streamline the export factoring process and provide faster access to capital for SMEs?

At Stenn, we believe that technology can revolutionize the trade finance industry. That’s why we’ve invested heavily in developing a state-of-the-art online platform that streamlines the export factoring process.

Our platform eliminates the need for cumbersome paperwork and manual processes, allowing SMEs to submit unpaid invoices and supporting documents electronically. Once submitted, our risk engine, using machine learning and AI, automatically assesses risk, compliance and analyzes the creditworthiness of the buyer in the supply chain, to make a finance decision and calculate the limit that can be offered. This automated process significantly reduces processing time, ensuring that exporters have faster access to capital. Additionally, our platform provides real-time tracking and reporting, so SMEs can monitor the status of their invoices and funding requests in real time.

Can you explain how the BETA Hub platform integrates digital tools to support Indian exporters, and what role technology plays in enhancing their access to finance and market insights?

The BETA Hub is more than just a digital platform; it’s a comprehensive ecosystem designed to support Indian exporters at every stage of their journey. By providing access to a wealth of resources, including market research, networking opportunities, and financial solutions, the BETA Hub empowers SMEs to grow their businesses and expand into new markets.

One of the key benefits of the BETA Hub is its ability to connect exporters with potential buyers and partners. Through our online forums and events, SMEs can network with other exporters, share best practices, and explore new business opportunities. Additionally, the BETA Hub provides access to a range of financial resources, including Stenn’s export factoring solutions. By offering a one-stop shop for all their needs, the BETA Hub simplifies the export process and helps SMEs achieve their goals.

What specific innovations or tech-driven solutions has Stenn implemented to improve the efficiency and security of international trade financing?

At Stenn, we prioritize security and efficiency in trade finance. This is why we see ourselves as a fintech, rather than only a provider of finance solutions. To achieve this, we’ve invested heavily in our platform and customer-facing application – Stenn App. We have built a proprietary risk engine that utilizes machine learning models and AI to quickly make a decision on whether to finance a client and what limit should be applied. We do this by seamlessly integrating data from trusted third-parties as input into our decisioning process. For the customer, this means fast approval on application and quick access to finance, faster than going through traditional bank-style processes. Our strong cybersecurity measures protect customer data, and our automated fraud detection capabilities help prevent losses. These technologies ensure our customers can conduct trade finance transactions with confidence.

How is Stenn utilizing data analytics or AI to assess credit risk and provide tailored financial solutions to SMEs engaged in cross-border trade?

Stenn uses advanced data analytics to evaluate credit risk and offer tailored financing solutions to SMEs. We automatically analyze a company’s financial health, especially on the side of the international buyer in the U.S. or U.K. This helps us provide competitive financing rates, offer a wider range of financing options, and make faster approval. By using data analytics, plus associated machine learning models and AI, we can provide SMEs access to finance, far quicker and easier than traditional bank finance options.

In what ways does Stenn’s digital infrastructure enhance the user experience for exporters, and how does it differ from traditional financial platforms?

Stenn’s digital platform offers a superior user experience compared to traditional finance providers. Our customer-facing, Stenn App, is designed to be easy to use, allowing SMEs to easily upload their unpaid invoices for financing and submit the necessary documents. This means they can pick and choose which invoices they want to finance with Stenn. Additionally, our app provides a transparent process, communicating the stage of approval, finance limits etc. This ensures that SMEs are always informed about the status of their requests.

Compared to traditional banks, Stenn offers a much faster and more efficient process. Our automated systems can process applications, with the right documentation provided, fast, while traditional banks may take weeks or even months. Furthermore, our online platform eliminates the need for manual sending and receiving of paperwork, reducing the administrative burden on SMEs.

How is Stenn ensuring the scalability of its technology platform to meet the growing demand for trade finance in India and other markets?

Stenn’s technology platform is designed to be highly scalable, allowing us to accommodate the growing demand for trade finance in India and other markets. Our cloud-based infrastructure enables us to quickly add capacity as needed, ensuring that we can meet the needs of our customers even during peak periods. Additionally, our modular architecture allows us to share the learnings across products and markets and launch new products faster.

What future technological advancements or digital initiatives is Stenn exploring to further innovate and improve trade finance solutions for SME?

We aim to be the number 1 fintech, globally, providing modern finance solutions for SMEs. The development of our backend, proprietary risk engine allows us to quickly scale with new products and new countries. With this, we are exploring a range of new finance products, based on customer demand and exploring new territories.