Suppliers in Latin America now have access to early payments and lower cost of funding at a time of rising interest rates, thanks to a partnership between J.P. Morgan and fintech OmniLatam. The strategic alliance allows buyers to inject liquidity across their full supply chain from the largest suppliers to their SMEs, including small and midsize enterprises.
The alliance between J.P Morgan and OmniLatam provides working capital solutions to J.P. Morgan's clients and their suppliers in Colombia, Chile and Brazil. Through early payments opportunities clients can improve the financial stability of their suppliers at a time when immunization from supply chain disruption is paramount.
The strategic alliance with Omni, a data-driven fintech focused SME working capital solutions, will further accelerate the Firm’s market share in the region. J.P. Morgan’s Trade and Working Capital team plans to increase capabilities to deliver local and cross-border Supply Chain Finance and Dynamic Discounting products and services to this wide, regional client base.
J.P. Morgan Payments is eager to scale the supply chain finance business in Latin America, following the successful Taulia alliance, which powers fintechs using the strength of the bank’s balance sheet.
The Omni alliance will complement the existing Taulia offering in the region, while opening up even more opportunities for the region—which J.P. Morgan’s Heather Crowley feels has been underserved to date. “Omni’s market-differentiating, data-driven capabilities uniquely position us to take advantage of LATAM’s unique infrastructure by offering early payment programs more tailored to our clients within the region.”
This is a solution that we are confident will resonate in market, partnered with a playbook that we already know breeds success. It’s a huge opportunity for businesses in the region.
Omni’s APIs will also allow J.P Morgan to originate, underwrite and service working capital solutions for corporations, middle-market companies and SMEs, while protecting the buyer's supply chain from any credit downturns and funding dislocations, to ensure that their whole supplier base has access to a reliable, early payment program.
Filipe Oliveira, Latam Trade and Working Capital, J.P. Morgan, said, “Omni will enable a rapid growth of our SCF business in the region, doubling it in three years. The combination of their technology with our regional footprint and balance sheet will address client’s unmet needs, given the nuances our clients have in LATAM. The alliance will strengthen Trade and Working Capital and Payments in the region.”
Heather Crowley agrees. “This strategic alliance represents a huge opportunity for Latin American business. By combining our strength with Omni’s technological capabilities, we can offer clients a simple and quick implementation process—at no cost to the buyer—and work directly with the supplier to ensure their full working capital needs are met.”
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