Arviem collaborates with Erste Group to offer an innovative supply chain financing solution
The cooperation with Arviem will allow Erste Group to develop exceptionally innovative and digitally-enabled working capital financing programs for its clients
Erste Group customers will benefit from being able to increase transparency and efficiently manage and optimize their operative and financial supply chains
Arviem’s application of IoT technology connects the physical and financial supply chains by providing a constant data stream on the location and condition of cargo
Arviem AG and Erste Group Bank AG (“Erste Group”) are collaborating on a new inventory financing solution that the CEE banking group will offer to its corporate customers. Erste Group and Arviem have developed a set of working capital solutions for goods and raw-materials, both in transit and in stock. Under the commercial and lending coverage of Erste Group, Arviem will provide inventory management solutions by buying, holding and selling raw materials, as well as slow and fast moving goods, for Erste Group customers to improve their working capital position. In doing so, Arviem combines its state-of-the-art technologies and trading structure to increase visibility and security over the assets in scope and also facilitating just-in-time recognition of those assets on the balance sheets of Erste Group’s clients.
Through its cooperation with Arviem, Erste Group becomes one of the first financiers to adopt IoT technologies in the financing of products, thus positioning itself as a pioneer in service innovation on the supply chain finance market.
“Erste is committed to offering its customers innovative products and services that bring them tangible benefits in handling their banking and financing needs. Through our cooperation with Arviem, Erste customers will benefit from cutting-edge trade- and supply-chain-financing solutions that are unique in the markets we service,” comments Patrick Goetz, Managing Director for Corporate Flow Products at Erste Group and a management board member of its supply chain finance solutions subsidiary Intermarket Bank.
“We are delighted to work with Erste Group towards jointly improving the status quo by innovating traditional supply chain financing models. Being able to offer a tailored, end-to-end solution to Erste clients for inventories to optimize their working capital requirements will certainly allow Erste to strengthen its relationship with corporate customers,” says Fabio Manca, Director Working Capital Solutions at Arviem.
About Erste Group Bank AG:
Founded in 1819 as the first Austrian savings bank, Erste Group (www.erstegroup.com) went public in 1997 and has grown to become the leading financial services provider in the Eastern part of the EU. Its ca. 47,000 employees serve over 16.5 million customers in more than 2,400 branches in 7 countries (Austria, the Czech Republic, Slovakia, Romania, Hungary, Croatia, and Serbia). Besides its traditional strength in serving private individuals, Erste Group’s core activities also include advisory services and support for corporate clients in financing, investment and access to international capital markets, as well as supply chain finance solutions through its subsidiary Intermarket Bank AG. As per Q3 2019, Erste Group had EUR 252 billion in total assets and posted a net profit of EUR 1.22 billion, while its tier-1 capital ratio (CET-1, Basel III, final) stood at 13.5%.
About Arviem AG:
Arviem (www.arviem.com) solves the challenges of obtaining visible and intelligent trade by offering real-time end-to-end cargo and asset monitoring and reporting services. Arviem enables the optimization of the financial and physical supply chains by making goods in transit financeable through monitoring the location and condition of the cargo in real-time. Recently, to further strengthen its portfolio of solutions, Arviem created a Working Capital Services division, able to integrate end-to-end monitoring and reporting of assets with working capital optimization. By leveraging the data collected through monitoring the movements of goods with IoT sensor devices, Arviem provides traceability from ‘doors closing to doors opening’ providing access to financial institutions to trade flows. This allows financiers to provide financing earlier in the supply chain opening up new revenue streams.