Today, across the banking industry, when SME owners apply for loans, they have to handwrite and sign on physical forms. DBS has made the entire application process paperless and signatures are no longer required, which is an industry first.
The application forms have also been redesigned with simple, jargon-free language, and the number of fields to be completed has been reduced by 76%, to expedite the application process to only 10 minutes online. DBS also linked its backend system to information obtained from Account and Corporate Regulatory Authority’s database via a service provider to pre-populate loan application forms to save SME owners’ time.
For example, when applying for government assisted loans such as the SPRING micro loan programme, SME owners currently have to complete two forms, a DBS loan application form and the Local Enterprise Financing Scheme (LEFS) form. Under DBS’ new loan application service, the two forms have been combined into one and repetitive fields have been eliminated. According to SPRING data, DBS is Singapore’s largest provider of micro-loans for young start-ups, micro and small enterprises since 2011. The bank receives an average of 1,500 micro-loans applications a year, which is more than 60% of all micro-loans applications supported by SPRING in Singapore.
The moment an application is submitted online, the information is channeled into the bank’s credit scoring engine, where quick, accurate and consistent loan decisions can be made, using Big Data with proprietary algorithms.
Customers can track their applications real time and follow their applications through the credit decisioning process. This new system will also automatically update SME owners when their loan applications have reached critical stages such as when their application is received, approved etc. This new feature was introduced based on feedback from SME owners.
Initial customer feedback has been positive. Mr Loke Kit Kai, Director and Owner, Acceltus Pte Ltd said: “The application process was smooth with step-by-step instructions that were easy to follow. I was surprised that it was so simple to use and I could complete the whole process in five minutes.”
This virtual loan application initiative is the latest in a slew of initiatives by DBS to bring greater convenience and value to customers through digital banking, and to shape the future of banking. Said Lim Chu Chong, Regional Head of SME Banking, DBS Bank, “We have adopted the human-centred design discipline and redesigned the entire loan application process, enabling SME owners to apply for loans while on the go. We are constantly innovating and looking to improve the customer experience, making banking for SMEs simpler, smarter and more social.”
The virtual loan application service is available to Singapore registered businesses that are operating entities in Singapore. ______________________________________
[1]These 11 loans and related services are: business loans, overdrafts, micro loans, property loans, equipment loans, vehicle financing, foreign exchange, import & export lines, factoring, business credit cards
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About DBS DBS - Living, Breathing AsiaDBS 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 capital position, as well as "AA-" and "Aa1" credit ratings, is among the highest in Asia-Pacific. DBS has been recognised for its leadership in the region, having been named “Asia’s Best Bank” by The Banker, a member of the Financial Times group, and “Best Bank in Asia-Pacific” by Global Finance. The bank has also been named “Safest Bank in Asia” by Global Finance for six consecutive years from 2009 to 2014.
DBS provides a full range of services in consumer, SME and corporate banking activities across Asia. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets. These market insights and regional connectivity have helped to drive the bank’s growth as it sets out to be the Asian bank of choice. 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 21,000 staff, representing over 40 nationalities. For more information, please visit www.dbs.com.
