Singapore’s DBS Bank has launched a digital logistics solutions package for small and medium-sized enterprises (SMEs) in the logistics sector that are looking to expand their regional footprint.
Comprising digital solutions powered by the bank’s application programming interfaces (APIs), the package will provide SMEs with access to real-time trade financing and funds settlement capabilities directly through their enterprise resource planning (ERP) or internal systems.
In addition, SMEs will also be able to collect payments instantly and process refunds via online portals, mobile apps and DBS Max, a QR code mobile application.
Although logistics accounts for around 7% of Singapore’s GDP, it is becoming more saturated with tighter profit margins, spurring more SMEs in the sector to turn to overseas markets for growth.
But in doing so, they often face challenges such as access to trade financing, operational inefficiencies from paper-based and manual processes, the lack of supply chain traceability, as well as payments and collection inefficiencies.
“Customers looking to expand overseas need more advisory services and solutions and we are here to help them make the first step,” said Tan Su Shan, group head of institutional banking at DBS Bank. “We hope to make banking simpler and more seamless for our customers, so they have a more structured approach to their regionalisation plans.”
Yang Kee Logistics, a DBS customer since 2002, was the first firm to sign up for the package. It operates in 12 markets and is looking to grow its footprint in the region.
Said Ken Koh, group CEO of Yang Kee Logistics: “Expanding into new markets is always challenging, we lack market knowledge and understanding of regulatory requirements. Partnering with DBS gives me the confidence to take our regionalisation plans to the next phase”.