AEF's InBlock platform revolutionizes factoring in Spain: Growth of between 15% and 30% is expected in five years.

 

 

 

The project InBlock, started in 2023, represents a milestone in the digitalization of the trade finance market by offering universal and shared use, accessible to any operator. Its main functionality lies in the ability to perform two simultaneous validation processes on each invoice transferred:

 

Duplicity Check: Check whether the invoice has already been negotiated or discounted by another market operator.

 

Tax Verification: Check whether the invoice has been duly declared by the seller to the Tax Authorities.

 

Trust and Public-Private Collaboration

 

Ten entities associated with the AEF—BBVA, Santander, CaixaBank, Sabadell, Kutxabank, Laboral Kutxa, Unicaja, Cajamar, Cesce, and BFF—joined forces to promote this initiative. The work has been carried out in collaboration with EY Spain as a main partner, highlighting the consent among the participants to develop a model that would address the common interests of the market.

 

Un "key point" for the success of the project has been the close collaboration with the State Tax Administration Agency (AEAT) and Basque Provincial EstatesThese administrations understood that facilitating access to InBlock "It provided transparency, helped reduce fraud, and helped companies access the trade finance market.".

 

In order for the platform to verify the veracity of the invoices, the company that hires a line of Factoring or working capital financing must authorize InBlock to request a consultation of your assigned invoices. This process is simple and fast, requiring "just three clicks" at the corresponding tax office, and the authorization is extended for a period of five years.

 

Impact on the Growth of Factoring in Spain

 

The AEF is handling very optimistic figures regarding the platform's impact. The synergies and efficiencies generated by the platform are expected to be significant. InBlock have a direct and significant effect on the growth of Factoring in the country, attracting both existing customers and, above all, new customers.

 

At present, InBlock is in your Exploitation Phase, with the four main factoring entities in Spain already operational: BBVA, Santander, CaixaBank and Sabadell. A is expected continuous incorporation of new entities in the coming months. The AEF's estimates are very clear: the Platform InBlock could Boosting factoring volume growth in Spain of between 15% and 30% over the next 5 years.

 

In statements to the company Exterior, Carlos Dalmau, President of the AEF he commented: "Today we have presented this initiative, which is now a reality, called INBLOCK. It is a platform owned by the main banking entities in Spain, which account for almost 90% of the market in the transfer of commercial credits, to facilitate greater financing. We have calculated that this growth of Factoring as a Financial Tool for Managing Seasonal Fluctuations in Trucking would be 15% to 30% over the next 5 years. We gain the opportunity to expand financing lines with clients because we have accurate information on invoices and commercial credit, and we allow for accelerated financing at the initial time of invoice creation. The objective of the initiative pursues two clear objectives: on the one hand, the promotion of digitalization from companies and financial institutions; and on the other hand, to support the growth of Spanish companies by offering short-term financing solutions."

 

No Costs for the Customer and Maximum Security

 

It is important to highlight that the service There will be no direct costs for the Factoring clientThe rates applied to operators and entities have been designed under a forecasting model that seeks only cover the costs development, maintenance, operation and evolution of the Platform, without pursuing a profit margin. This implies that The higher the volume of invoices and entities in use, the lower the average cost applied will be..

 

In terms of security,, the platform InBlock es "completely safe"Its design covers the security of stored information, access management and technology's own intrinsic security blockchain. It has undergone an exhaustive testing plan and ethical hacking to ensure that it does not present vulnerabilities. Additionally, the design and deployment of the system has been carefully carried out by EY Spain to ensure that "the competent regulators in their scrutiny (CNMC, financial authorities, among others) feel comfortable" with its operation.

 

As he pointed out in his statements, Enrique Fernández, Financial Regulation Partner at EY: «INBLOCK It is an initiative in which the Spanish Factoring Association mandates EY as the main advisor because we cover the part of the legal design and technological designThe first pillar is security: ensuring that the platform, as a digital asset for data exchange, is based on the security standards that financial institutions, as regulated entities, expect. This is why blockchain as a technological element that incorporates all the security features regarding the insertion, registration, and anonymized and encrypted sharing of all invoice data. Public administrations are the other interlocutor; they were an essential element in the design. Obtaining these data exchange agreements [with the tax agencies] is key to achieving the goal of reducing the risk of fraud that the platform's functionalities aim to accomplish.

 

The Platform operates under a rule-based environment, with free and non-discriminatory access, and is governed by a governance system that guarantees the highest standards of independence and prevention of conflicts of interest.