DBS Bank and GS1 HK announce innovative partnership to provide local SMEs with on-demand digital trade financing solution
SMEs can now access same-day trade financing in a simple and digital manner by leveraging alternative data
DBS Bank (Hong Kong) Limited and GS1 Hong Kong are pleased to announce the launch of an innovative digital post-shipment trade financing solution powered by alternative data. With this offering, small and medium-sized enterprises (SMEs) on GS1 Hong Kong’s ezTRADE platform can now utilise their trade data to access financing in a digital and straight-through manner instead of manually submitting hundreds of invoices every month.
Providing SMEs with a digital and streamlined trade finance solution to meet their business needs
DBS Bank and GS1 Hong Kong’s innovation uses trade transaction data to provide SMEs in the fast-moving consumer goods (FMCG) and food & beverage (F&B) sectors with a digital post- shipment trade solution. This digital offering makes it easy for SMEs to access working capital with just one click via the bank’s corporate banking platform, DBS IDEAL.
With this solution, SMEs can enjoy faster access to funding with minimal hassle and drive their business growth. Leveraging on GS1 Hong Kong’s ezTRADE data and DBS’ digital capabilities, SMEs can obtain trade financing within the same day . SMEs no longer need to submit hundreds of invoices manually to the bank. This paperless approach to trade financing not only frees SMEs from repetitive document submission, but also paves the way for more digital and sustainable business practices.
This solution redefines the trade financing journey for SMEs with DBS availing financing through a streamlined credit assessment process. Through DBS’ predictive analytics capabilities, invoice data is used to assess the financial health of SMEs. What’s more, the amount of financing SMEs can enjoy is updated on a dynamic and recurring basis.
Alex Cheung, Managing Director and Head of Institutional Banking Group of DBS Hong Kong said the partnership demonstrates the bank’s steadfast commitment to the SME community. “As a leader in SME banking, DBS is proud to partner with GS1 Hong Kong to support companies with timely working capital in this challenging business environment. By enabling the use of their trade data for enhanced access to financial services, SMEs can further fortify their business resilience,” said Mr. Cheung. “This is an optimised solution that is available to all GS1 Hong Kong members using the ezTRADE platform for transactions. SMEs can enjoy a fast turnaround time and draw down on their facility to meet the needs of their business”.
In addition, SMEs in Hong Kong can enjoy DBS’ HK $180,000 Online Account Opening Offer. With this specially designed promotion, the package gives SMEs the boost they need to meet their business demands and expansion goals.
Anna Lin, Chief Executive of GS1 Hong Kong commented, “This new partnership with DBS capitalises on our platform’s rich datasets to enhance SMEs’ cash flow, bringing great value to our members in their continued digitalisation journey. As one of the early participants of the Hong Kong Monetary Authority’s Commercial Data Interchange (CDI) pilot initiative, we aim to nurture a collaborative digital trade finance ecosystem – building on our close collaboration with more financial institutions and delivering innovative solutions for the Hong Kong business community”.
Sandy Tan, Head of Ecosystems for Institutional Banking Group, DBS Bank (Hong Kong) Limited shared, “This digital solution was borne out of DBS’ ongoing commitment to meeting our SME customers’ needs in new and innovative ways. By leveraging digital ecosystems, we are pleased to be able to enhance the SME customer journey further by providing trade financing via a digital ‘one click’ transaction experience. SME suppliers receive hundreds of invoices per month and may have limited resources to submit documentation to the bank for trade financing purposes. Through our collaboration with GS1 Hong Kong, we have the ability to use alternative platform data to give us visibility on an SME’s health and support their working capital needs”.
 With the consent of
 SMEs can initiate their drawdown request digitally via the DBS IDEAL platform and obtain the disbursed funds within the same day when requesting prior to the 4pm daily cut-off time. If the request is made after 4pm, funds are disbursed to their account the next business day.
 The Commercial Data Interchange (CDI) is a next-generation financial data infrastructure being developed by the Hong Kong Monetary Authority (HKMA). It aims to enable more efficient financial intermediation in the banking system and enhance financial inclusion in Hong Kong. For more information: https://www.hkma.gov.hk/eng/key-functions/international-financial- centre/fintech/research-and-applications/commercial-data-interchange/