DBS Bank rolled out a digital solutions package for small and medium-sized enterprises (SMEs) in the logistics sector, which will help them tackle challenges in regional expansion and keeping up with evolving consumer needs.
DBS on Wednesday launched the solutions package at the Logistics Disrupt by DBS BusinessClass event. It will include digital solutions powered by DBS RAPID (Real-time APIs with DBS) such as supply chain financing and traceability, real-time trade financing application, and funds settlement directly through their enterprise resource planning (ERP) or internal systems. It also includes instant payment collections and refunds via the customers’ online portal, mobile app or DBS MAX.
«The needs of SMEs in the logistics sector are diverse as they have to keep their eye on everything from inventory, the timing of goods shipped and received, cash flow and expansion needs. As a responsible banking partner, we want to provide a greater selection of solutions that will help them grow their footprint,» said Joyce Tee, group head of DBS Bank's SME banking arm in a media statement.
Lack of Access to Trade Financing Solutions
Singapore's logistics sector contributes about 7 percent to the country's gross domestic product, and companies in the sector are looking to tap the growth of South-east Asia's e-commerce industry, which is projected to grow to $100 billion by 2025.
However, SMEs in the logistics sector face challenges including lack of access to trade financing solutions, operational inefficiencies from paper-based and manual processes, lack of supply chain traceability, and payment and collection inefficiencies. «We hope to make banking simpler and more seamless for our customers, so they have a more structured approach to their regionalization plans,» said Tan Su Shan, group head of institutional banking at DBS Bank, in the statement.
