Rethinking Supply Chain Finance: How Newgen is Shaping the Future

In a world where supply chain disruptions are the new norm, financial institutions are under pressure to deliver faster, more transparent, and secure financing. Yet, many still rely on fragmented systems and manual workflows that slow them down.

Enter Supply Chain Finance (SCF)—and more importantly, a smarter way to manage it.

Newgen’s digital-first SCF solution is helping banks and enterprises shift from outdated practices to agile, automated, and AI-driven operations. And with the rise of Generative AI (GenAI), the possibilities are expanding fast.

What Is Supply Chain Finance—and Why It’s Broken

Supply Chain Finance connects buyers, suppliers, and financial institutions to optimise working capital for all parties. Buyers get extended payment terms, suppliers receive early payments, and banks earn returns on low-risk financing.

But most SCF operations are plagued by:

• Manual processes that cause delays
• Lack of visibility across transactions
• High error rates from duplicate or fraudulent invoices
• Poor collaboration between parties
• Limited data intelligence for decision-making

These challenges hurt efficiency, increase risk, and prevent financial institutions from scaling their SCF offerings.

Newgen’s Supply Chain Finance Solution: Built for the Real World

Newgen’s SCF solution addresses these issues head-on. It’s a modern, low-code platform that digitises the entire lifecycle—from onboarding to invoice settlement.

What sets it apart?

• End-to-End Automation – Straight-through processing (STP) for faster, touchless workflows
• Intelligent Invoice Management – Auto-financing based on pre-set rules, with real-time status tracking and settlement
• Smart Onboarding and KYC – A self-service portal for buyers and suppliers to register, upload documents, and get verified—all digitally
• Robust Risk and Fraud Controls – Dedupe checks, digital signatures, and real-time credit limit monitoring help reduce fraud and errors
• Tight Document Integration – Integrated with OmniDocs ECM for seamless handling of invoices, purchase orders, and GRNs
• Real-Time Dashboards – Visibility into every stage of the financing process—no more guesswork
• Flexible Program Configuration – Set financing tenures, limits, and disbursement rules per buyer, seller, or anchor program.

GenAI: The Next Leap in SCF

While automation solves efficiency problems, Generative AI (GenAI) is solving intelligence problems.

Newgen’s new GenAI engine, LumYn, adds brainpower to the SCF engine. Here’s how it transforms the game:

• Smart Document Understanding – Extracts and validates data from invoices, GRNs, and contracts at scale—no manual intervention needed
• Predictive Intelligence – Forecasts potential delays, disputes, or defaults based on historical behavior and context
• Conversational Interfaces – Enables users to ask natural language questions— “What’s the status of Invoice #12543?”—and get instant answers
• Hyper-personalized Communication – Uses GenAI to craft targeted notifications and updates based on transaction history, credit profiles, and user behavior

This isn’t just AI—it’s AI that understands your workflows, adapts in real-time, and delivers insights when and where you need them.

Real-World Impact: A Case from Africa

One of the largest banks in Africa, operating in 24 countries, was stuck with manual SCF operations—slow processes, high costs, and frustrated customers. Newgen helped them flip the script.

Key Outcomes:

• Digitized end-to-end processes for factoring and reverse factoring
• Auto-financing and settlement of invoices using rule-based logic
• Self-service onboarding portal with unique relationship IDs
• Contextual content management using OmniDocs
• Open API integration with third-party platforms and blockchain tech like Hyperledger Fabric

The result?

Faster turnaround times, fewer errors, better transparency—and a transformed customer experience.

The Takeaway

Supply Chain Finance is no longer just about unlocking capital. It’s about speed, control, intelligence, and resilience. And as GenAI reshapes how we think about automation, financial institutions that embrace this shift will lead the next wave of innovation.

Newgen is ready for that future. With a unified digital platform powered by low-code automation and GenAI, we’re not just digitising SCF—we’re redefining it.

Let’s build smarter financial supply chains. Together.

Connect now for a demo.