SEOUL, South Korea, July 22, 2021 /PRNewswire/ — AIZEN, an AI-focused fintech firm based mostly in Singapore, right this moment has introduced that it has signed a definitive settlement to amass an e-commerce service provider money administration platform in Korea as a part of its vertical date economic system integration technique.
There are several types of retail e-commerce websites in Korea: open markets like Naver Good Retailer; social commerce like Coupang; present retail giants; and MZ-favored vertical platforms reminiscent of Musinsa, Brandi, and Zigzag. A vendor sometimes diversifies their gross sales channels from 9 to 10 malls on common, and every mall settles the gross sales cost inside 9 to eleven days.
It is a actual trouble for sellers with regards to money administration, since each mall has completely different gross sales cost cycles and insurance policies. The corporate AIZEN is buying is addressing the sensible wants of sellers that wish to scale, by enabling important money stream administration performance through its personal money administration platform.
It supplies on-line sellers with instruments to observe and management their money tied to a number of e-commerce websites, together with their gross sales, anticipated settlements, refund historical past, in addition to every day experiences on when the sellers can obtain its gross sales cost, by malls, by settlement date, and by completely different supply standing.
The acquired firm is the one firm that has managed to hook up with over 42 on-line and offline malls. Their competitiveness comes from its 10 years of know-how and experience on completely different settlement insurance policies each e-commerce web site has, in addition to their backend infrastructure that’s consistently being up to date.
So far, there are millions of registered retailers with gross transaction worth(GTV) of over US$2.5 billion. Main banks in Korea have already approached and partnered with the corporate for its information availability and applicability in service provider mortgage underwriting.
Nevertheless, working with legacy banks entails months-long course of from discussing product schemes, validating know-how necessities, checking regulatory compliance, and to remaining integration. Even the mortgage helps solely a restricted variety of malls which additionally narrows down the variety of choices out there for the sellers.
The acquired firm has its account receivable financing system referred to as GSM which have originated over US$600 million loans for the final couple of years. The mortgage selections have been based mostly on the a number of sources of information it has collected from e-commerce websites, banks, cost gateways and VAN firms, in addition to stock, warehousing, and success information from the third-party logistics(3PL) companions. It’s favoured by many sellers as they will see the scattered info throughout their malls with just some clicks and simply apply and get loans in one-stop.
AIZEN will leverage AI know-how to supply sellers much more worth with CreditConnect, backed by a powerful financing companion together with credit score funds. CreditConnect handles the core operations across the credit score cycle, which it goals to design and construct as an Autonomous Banking Working System that totally automates core credit score selections from buyer acquisition, product improvement, danger administration, and assortment.
This additionally advantages the financing companion as they will quickly increase their retail belongings with out having to arrange a separate operation staff.
Loans might be originated based mostly on subtle AI modeling, with differentiated credit score limits and charges for every service provider based mostly on their gross sales and product return danger scores. It’s powered by AIZEN’s proprietary AutoML engine referred to as ABACUS, which is utilized by a few of the largest banks, bank card and insurance coverage firms. It has additionally been acknowledged by the Financial Authority of Singapore as a world winner on the MAS Fintech Award.
“With the addition of an e-commerce information aggregation platform, we are able to strengthen our AI-powered lending platform and additional improve our information economic system ecosystem throughout your entire worth chain within the e-commerce business.” stated Jung Seok Kang, CEO of AIZEN. “We’re working to increase the identical enterprise mannequin in several international locations as we standardize the method and infrastructure to attain excessive scalability.”
“The acquisition will enable us to higher serve our sellers via a variety of tailor-made financing and lending choices” stated the CEO of the acquired firm, and “we’re excited for this chance to proceed to assist sellers to harness their money stream and scale up rapidly”.
The acquired firm will proceed to function as an impartial subsidiary of AIZEN. Beginning with CreditConnect E-commerce, AIZEN plans to reinforce its vertical information economic system integration technique throughout Southeast Asia together with Vietnam and Indonesia, and increase to mobility, gig economic system and different potential information economies to return.
— to finance.yahoo.com