DBS partners leading Chinese electronics manufacturer Haier to provide digital financing to its distributors within 24 hours
Singapore, China, 09 Apr 2020 - To support the liquidity needs of small and medium-sized enterprises (SMEs), DBS Bank has launched a digital financing facility with Haier Group (Haier), a leading Chinese consumer electronics and home appliances enterprise, to enable its ecosystem of distributors to access lower cost financing for their purchase orders in a simple and fast manner. This forms part of Haier’s and DBS’ broader regional relief efforts to help businesses, many of which are SMEs, to stay afloat during these challenging times.
Accessible by Haier’s nationwide network of distributors via its digital supply chain platform, the integrated DBS financing facility enabled by the bank’s APIs offers distributors online financing for their purchase orders within 24 hours. This helps distributors shorten their cash conversion cycle and optimise their working capital.
John Laurens, Group Head of Global Transaction Services, DBS Bank said that providing financial sustenance to SMEs that form the commercial ecosystems of large corporates is of utmost importance in this unprecedented global trade situation. The DBS-Haier digital financing solution ensures that supply chains continue to operate in the face of disruptions. “Enhancing working capital management and access to financing is critical for both large corporates and SMEs especially in the current business environment. Technology has proven to be a useful tool in this aspect. By using DBS’ APIs to create an integrated financing facility plugged into an industry anchor’s supply chain platform, the benefits flow both ways. For Haier, their sales and distribution channels are given extra support; and for its SME distributors, they enjoy an extension on payment terms, helping them with essential cash flow and working capital management needs,” added Laurens.
Yang Hongxing, Head of Supply Chain Finance, Haier Group, said, “DBS is the first foreign bank to cooperate with Haier's digital supply chain finance business. At the early onset of the pandemic, DBS took the initiative to accelerate the implementation of digital financing lines for our distributors, to get the funds they need with as little physical interaction as possible. The speed at which financing can be offered to our distributors and the ease of being onboarded, have also elevated our customer experience journey to new heights. With DBS’ digital financing facility, Haier’s customers can access low-cost financing with just a few clicks of the mouse. DBS and Haier’s Supply Chain Finance team will continue to jointly promote global cooperation in Haier's upstream and downstream supply chain finance going forward."
DBS saw close to 30 distributors onboarded on the fully digital financing facility targeting distributors in the first week of launch. Additional capabilities include integrated online account opening and onboarding, and facial recognition and biometric features for enhanced security. The bank has also completed its first distributor financing request in March, where the distributor received the requested financing in under 30 minutes from the point of submission. Laurens added, “The speed of financing gives businesses a fighting chance to tide through the downturn and emerge more resilient to ride the economic upturn when it returns.”
DBS is the only non-Chinese bank appointed by Haier for this digital financing facility. The other three participating banks are China Everbright, Bank of Shanghai and MYBank.
Committed to helping our customers transform digitally
DBS has been steadily working with its corporate customers to digitalise their supply chain ecosystems and avail easy access to digital trade financing. Over the past year, the bank has launched several digital trade financing initiatives. To find out more, please see the following:
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DBS launches its first multi-tier financing facility on blockchain platform to help SMEs in China get faster access to trade financing
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DBS makes steady headway in digitalising trade; completes first fully digital trade financing settlement on Singapore’s networked trade platform with Audi Singapore and Premium Automobiles
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DBS accelerates trade digitalisation efforts with more ‘industry-firsts’ to drive greater efficiencies for customers
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About DBS
DBS is a leading financial services group in Asia with a presence in 18 markets. Headquartered and listed in Singapore, DBS is 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 “
World’s Best Bank
” by Euromoney, “
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 11 consecutive years from 2009 to 2019.
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 our 28,000 staff, representing over 40 nationalities. For more information, please visit
www.dbs.com
.
DBS Bank Ltd | 12 Marina Boulevard, DBS Asia Central @ Marina Bay Financial Centre Tower 3,
Singapore 018982 | Co. Reg. No. 196800306E
Tel: 65.6878 8888 | www.dbs.com
