DBS partners China Capital Logistic and Wanxiang to launch an end-to-end blockchain trade platform for the automotive industry
SINGAPORE,CHINA,17 December 2018 -
DBS Bank today announced that it has partnered with one of China’s largest automotive logistics companies, China Capital Logistic Co. Ltd (CCL)
, and leading blockchain provider, Wanxiang Blockchain (Wanxiang), to launch an automotive blockchain platform (blockchain platform), connecting car manufacturers, exporters, logistics carriers and car dealerships.
Named YunLianMeng, which means “Logistics Supply-Chain Connect” in Mandarin, the blockchain platform aims to provide CCL’s supply chain network with greater efficiency, cost savings and transparency. The blockchain platform will also facilitate integrated trade financing from DBS, giving participants easy access to financing on-the-go. This will be especially beneficial to small and medium enterprises (SMEs), which previously would not have access to the bank’s credit facilities.
Neil Ge, CEO of DBS China, said, “Developing solutions that solve our customers’ business pain-points is our objective, and we’ve learnt that the best way to do that is through collaboration. By partnering with key industry leaders, we were able to tap on each other’s expertise and networks to develop a blockchain platform with the scale and reach to make a meaningful impact to the automotive industry in China
With YunLianMeng, all participants along the supply chain will be able to access data on their order and delivery status in real-time. This enables transactions to be completed seamlessly, promoting faster order turnarounds and greater transparency. For instance, shipment carriers are able to receive and accept e-shipment orders through YunLianMeng. Thereafter, end customers, such as car dealerships, will be prompted through the blockchain platform to acknowledge the delivery order and log the delivery status of the goods once they are received.
All information posted on the blockchain platform will then be provided to relevant participants, building trust and transparency across the supply chain. In addition, YunLianMeng also serves as a secure information repository by ensuring all confidential data is protected and restricted to authorised parties only.
Financing-wise, DBS evaluates and disburses trade financing to participants based on digital data stored on YunLianMeng. This removes the need for paper-based supporting documents, cutting short the credit approval process. This means that participants on the blockchain platform get to enjoy a shorter working capital cycle which translates to savings in supply chain costs.
Since YunLianMeng’s launch in December, DBS has already successfully processed and disbursed the first trade financing request to an SME vendor on YunLianMeng. A logistics subsidiary of Beijing Automotive Group China produced 21 million passenger cars in 2015, ranking it the first among countries with the largest production of passenger cars. Source: Statista, The Statistics Portal
DBS is a leading financial services group in Asia, with over 280 branches across 18 markets. Headquartered and listed in Singapore, DBS has a growing presence in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.
Recognised for its global leadership, DBS has been named “Global Bank of the Year
” by The Banker and “Best Bank in the World
” by Global Finance. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank
” by Euromoney. In addition, DBS has been accorded the “Safest Bank in Asia
” award by Global Finance for ten consecutive years from 2009 to 2018.
DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets. DBS is committed to building lasting relationships with customers, and positively impacting communities through supporting social enterprises, as it banks the Asian way. It has also established a SGD 50 million foundation to strengthen its corporate social responsibility efforts in Singapore and across Asia.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. The bank acknowledges the passion, commitment and can-do spirit in all of our 26,000 staff, representing over 40 nationalities. For more information, please visit www.dbs.com
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