UniCredit has announced a collaboration with FinDynamic, an Italian fintech company offering dynamic discounting programmes, as it seeks to enhance its working capital offering for corporate clients.
As part of the agreement, UniCredit has also taken a minority equity stake in the business – which the bank says highlights its willingness to partner with the right fintechs in order to drive innovation.
Corporates of all size are increasingly searching for tailored working capital solutions to address their individual needs. Dynamic discounting is a solution that allows clients to offer their suppliers early payment of their invoices in exchange for a discount. The discount is directly applied to the total amount of the invoice and its value changes dynamically in relation to the number of days discounted from the original invoice’s due date. This facilitates the use of the buyer’s strong cash position while providing liquidity to their suppliers.
FinDynamic’s solution, leveraging on its proprietary technology, allows both the buyer and its suppliers to automatically view invoices through a web-based or mobile platform and easily select approved invoices for early payment.
UniCredit is one of the first banks to join the dynamic discounting platform and the solution is currently in the roll-out phase to corporate customers in Italy.