HSBC and Tradeshift Launch SemFi Embedded Finance Venture for SMEs
On October 3, 2024, HSBC officially launched SemFi by HSBC, a joint venture with B2B network platform Tradeshift, focused on delivering embedded finance solutions to small and medium-sized enterprises. The venture embeds HSBC's payment, trade, and financing capabilities — including digital invoice financing and virtual cards — directly into e-commerce platforms and marketplaces such as Tradeshift's B2B network. SemFi is led by CEO Vinay Mendonca and COO Shehan Silva, both from HSBC, with Jo Miyake (Interim CEO of HSBC's Global Commercial Banking) serving on the board.
The platform initially launches in the UK, targeting SME suppliers who need seamless access to financial services within the platforms where they already operate. The initiative reflects growing demand for embedded finance in e-commerce, with the broader market opportunity estimated at $185 billion. By combining HSBC's global scale and regulatory infrastructure with a startup-like operational model, SemFi aims to transform how businesses access trade finance and payments.
- Major global bank enters embedded finance with a dedicated venture, validating the B2B embedded finance model for trade and supply chain use cases
- Sets a precedent for bank-fintech JV structures in BaaS, where banks contribute licensing and balance sheet while fintechs provide platform distribution
- Increases competitive pressure on standalone BaaS providers targeting SME trade finance in the UK and potentially globally