Understanding the Difference: How Quartix Puts Banks in the Driver’s Seat for SCF

In the evolving banking landscape, banks are continually seeking innovative solutions to better serve their commercial and corporate clients. As a company dedicated to providing comprehensive Supply Chain Finance (SCF) solutions to banks, Quartix understands the unique needs and challenges financial institutions face. However, there is often confusion in the market, particularly when comparing our offerings to those of Legacy SCF Providers (like Primerevenue, Taulia, and large banks such as Citi and JP Morgan). In this blog post, we aim to clarify these differences and highlight how our SCF solution can significantly enhance a bank's capabilities.

The Distinctive Advantage of Quartix's SCF Solution

At its core, Quartix's SCF solution is designed to empower banks to independently offer SCF services to their existing and potential clients. Here’s what sets our offering apart:

1. Comprehensive Digital SCF Platform: Our solution provides banks with a robust, fully-integrated digital platform tailored to manage and operate SCF programs. This platform is user-friendly, scalable, and designed to seamlessly integrate with a bank's existing systems as well as with clients’ ERP systems.
2. TechOps and Integration Support: We don’t just provide the technology; we offer end-to-end support, including integration with your clients' ERP systems, continuous technical support, and maintenance. Every new feature added to the platform can be automatically reflected in the version deployed to the bank. This ensures smooth implementation and operation, allowing banks to focus on their core competencies.
3. Simple, Transparent Pricing Model with No Fixed or Hidden Fees: At Quartix, we believe in clear and straightforward pricing. Our model eliminates the complexity and hidden costs often associated with legacy SCF providers, ensuring that banks can easily understand and manage their expenses.

The Legacy SCF Provider Model: A Different Approach

Legacy SCF Providers like Primerevenue, Taulia, and large banks such as Citi and JP Morgan, while beneficial in their own right, operate differently. They allow banks to invest in SCF assets through programs they originate and manage. While this provides an opportunity for banks to gain credit exposure to SCF assets, it comes with limitations:

1. Restricted to Participation: Banks can only participate in the funding of SCF programs managed by these legacy SCF providers. This model does not equip banks to independently offer SCF solutions to their own clients, limiting the scope of client engagement and service customization.
2. Dependency on External Management: Since the SCF programs are operated by legacy SCF providers, banks have less control over the specifics of the SCF offerings. This dependency can lead to challenges in aligning the SCF services with the bank’s strategic goals and client needs.
3. Client Referral and Revenue Sharing: Legacy SCF Providers often ask banks to refer their clients to them, sharing only a small portion of the revenue with the referring bank. This can be frustrating for banks that want a more significant role and share in the SCF services provided to their clients.

Why Choose Quartix?

Quartix's solution is specifically designed to address these limitations, providing banks with:

• Increased Wallet Share and Revenue Opportunities: Implementing Quartix’s SCF solution allows banks to add SCF to the portfolio of products the bank offers to its clients. This helps the bank to increase their wallet share with commercial and corporate clients, boost net interest margin (NIM) revenue, and unlock numerous cross-sell opportunities. This significantly enhances the bank’s profitability.
• Control and Customization: You have full control over your SCF offerings, allowing you to tailor solutions to meet the unique needs of your clients. We put you in the driver’s seat, empowering you to offer SCF directly to your clients without relying on external providers.
• Strengthened Client Relationships: By directly offering SCF services, you can deepen your engagement with clients, providing a seamless and valuable financial service.
• Comprehensive Support: From integration to ongoing technical support, we ensure that your SCF platform operates smoothly, enabling you to focus on delivering excellent service.
• Proven and Reliable: Quartix’s SCF platform is trusted and established, with over $1 billion in processed transactions. This track record provides peace of mind for banks, knowing they are partnering with a reliable and experienced SCF provider.

In conclusion, while legacy SCF Providers offer valuable services by enabling banks to invest in SCF assets, Quartix goes a step further by empowering banks to be the originators and operators of SCF programs. This not only enhances your product portfolio and boosts wallet share and NIM revenue but also strengthens your client relationships and market position.

We invite you to explore how Quartix’s SCF solution can transform your bank’s service offerings and drive greater value for your clients. Contact us today to learn more about our comprehensive SCF platform and the support we provide to ensure your success.