PRESS RELEASE: FCI Members sign MOU to launch FCIreverse platform

Monday 17 June 2019

Ho Chi Minh City, 11 June 2019

It’s a pleasure to announce that members signed last week during FCI 51st Annual Meeting a memorandum of understanding (MOU), an intention to launch the FCIreverse platform. The signatures follow the Mandate Agreement signed a year ago between FCI and Demica to use a modified Demica platform for the launch of FCIreverse.

FCIreverse is a network consortia of FCI members who have agreed to collaborate for purposes of generating new business opportunities to drive growth of their reverse factoring / supply chain finance business.   All transactions sourced through the FCIreverse network will run on the FCIreverse platform powered by Demica.

Supply Chain Finance  (SCF) is defined as the use of financing and risk mitigation practices and techniques to optimise the management of the working capital and liquidity invested in supply chain processes and transactions. SCF is typically applied to open account trade and is triggered by supply chain events. Visibility of underlying trade flows by finance provider(s) is a necessary component of such financing arrangements which can be enabled by a powerful technology platform. 

The very first buyer-led reverse factoring programs were initiated in Spain over 25 years ago, and the industry has grown significantly since.  Many FCI members have domestic reverse programs in place, but not necessarily the appropriate operating platforms to effectively support this growth.  FCIreverse provides members a strong operating system, at a very low cost of entry, and the ability to access FCI’s “four-corner” model, whereby the Anchor Buyer’s Financial Institution can access the support of the Export Factors that reside in the countries of the buyer’s foreign suppliers, who can assist with the supplier on-boarding process.