Freight forwarders usually receive payments from their customers, comprising importers and exporters, after completing service. However, they must pay shipping lines, port terminals, container freight stations and other stakeholders upfront to clear the cargo on time, which impacts their working capital. DBS recognised this gap and designed a financing solution that is digital, contextual, seamless and removes friction from the overall payment process. By broadening access to finance and, streamlining current credit workflows of ODeX customers, the ODeX Pay Later Solutions allow freight forwarders to make direct payments to ship liners. Businesses with a turnover of INR 3 Cr to INR 200 Cr that have completed over five years in the same industry can avail of an unsecured loan of up to INR 50 lacs from DBS Bank. Further, they can opt for a secured credit limit of up to INR 5 Cr. DBS was recognised among the ‘Outstanding Financial Innovators in Asia Pacific' for this trade finance solution at the annual Innovators Awards 2021 by Global Finance.
Divyesh Dalal, Head - Global Transaction Services, DBS Bank India, said, “At DBS, we are pre-emptive in recognising customer needs, and we leverage our best-in-class technology to deliver innovative financing solutions. The integration with ODeX will help simplify the payment journey for freight forwarders, thereby increasing efficiencies. Our analytics-based platform reduces friction and improves the turn-around time for disbursing credit. It allows for a seamless transaction flow wherein customers can raise requests from ODeX through API enabling real-time flow of information between the platforms.”
Sudarshan Chari, Head - Business Banking, DBS Bank India, said, “DBS has been at the forefront of supporting local businesses and broadening credit access to this segment. Our partnership with ODeX allows us to leverage our strong digital capabilities and offer innovative financing solutions to SMEs in the shipping industry. ODeX Pay Later Solutions will help unlock cash flow that will, in turn, allow these enterprises to scale and tap into emerging opportunities.”
Commenting on the partnership, Liji Nowal, Managing Director, ODeX, said, “This partnership is a clear and concentrated focus on serving a market that is currently underserved. The technology support from DBS will help us multiply our reach in the logistics industry, allowing us to present a complete solution suite to the customers.”
Customers can log in via ODeX and make payments to ship liners by getting access to finance within the platform. A Pay Later purchase invoice discounting option will be available at the checkout point on the platform, thereby helping them unlock extra funds for releasing goods on time without detention charges. The end-to-end process for onboarding is digital, and the approval time for the credit line is ~3 days. Once approved, the customer can dip into their credit line as per their requirement. They can even avail an option to increase their credit by opting for a secured loan. The platform integration offers added convenience. The customer does not have to provide invoices for financing separately. The bank receives data from ODeX directly to make the process quick and seamless.
The ODeX Pay Later Solutions powered by DBS is available to customers that have been associated with ODeX for a minimum of one year and are located near a DBS Bank India SME asset branch in Mumbai, Surat, Vadodara, Ahmedabad, Chennai, Kolkata or Delhi-NCR. DBS Bank India leverages its analytics-based lending platform to digitally onboard ODeX customers.
Such customers can also avail themselves of all the DBS SME Banking solutions with the DBS Edge-preferred current account. They will also get access to key solutions, including DBS Digital Business Loans- the segment-flagship online credit solutions platform by DBS offering collateral-backed credit up to INR 20 Cr for the entire spectrum of micro, small and medium-sized enterprises, paperless A2 online trade transactions, an online forex booking platform, easy remittance with DBS Priority Pay, Swift GPI tracking, and much more. Customers can enjoy the bank's customised offerings, complemented by the online banking platform - DBS IDEAL, for regular banking transactions and trade requirements.
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About DBS
DBS is a leading financial services group in Asia with a presence in 18 markets. 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 and the world's "Most Innovative in Digital Banking" by The Banker. DBS was also ranked No. 1 on Forbes' list of the World's Best Banks in India for two consecutive years.
DBS Bank has been present in India for 27 years, opening its first office in Mumbai in 1994. DBS Bank India Limited is the first among the large foreign banks in India to start operating as a wholly-owned, locally incorporated subsidiary of a leading global bank. DBS provides an entire range of banking services for large, medium and small enterprises and individual consumers in India. In 2016, DBS launched India's first mobile-only bank – digibank, which now has ~1 million savings accounts. In November 2020, Lakshmi Vilas Bank was amalgamated with DBS Bank India Limited. The bank now has a network of nearly 600 branches across 19 states in India.
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 an SGD 50 million foundation to strengthen its corporate social responsibility efforts in Singapore and across Asia. In 2020, DBS introduced the “Towards Zero Food Waste” initiative as part of a global sustainability practice to encourage a shift in behaviours and mindsets to reduce food waste.
With its extensive network of operations in Asia and emphasising engaging and empowering its staff, DBS presents exciting career opportunities. The bank acknowledges the passion, commitment and can-do spirit in all our 30,000+ staff representing over 40 nationalities. For more information, please visit www.dbs.com.
About ODeX
ODeX is India's Leading Digital Platform for Ocean Shipping Documents Exchange & Payments Facilitation. Founded in 2016, it seamlessly connects & acts as a Digital Gateway for Shipping lines, Freight forwarders, Importer, Exporters, Port Terminals, CFS's, Weighbridges, Custom Agents, and Banks, enabling ease of transactions.
The services offered by ODeX to EXIM Trade are Electronic Invoices, Payments, Delivery Order, VGM, Form 13, HBL, Shipping Bill, Security Deposit, etc. ODeX has more than 20k organisations registered with 30k + users with a daily transaction of 15k+.
DBS Bank India Limited
Email: anandmugad@dbs.com
