To help corporate clients keep in step with changing consumer behaviour where digital payments are becoming more popular, DBS bank today announced that it would help its corporate clients reduce cheque usage by at least 30% in the next 24 months. The Bank projects that this will lead to a reduction of millions of cheques issued by companies.
DBS corporate clients can now plug into the bank’s Application Programming Interface (APIs) to pay their retail customers instantly through PayNow. The new digital payment solution is powered by DBS IDEAL RAPID which helps corporate clients expedite their customers’ payments so that they can receive their claims instantly.
As a leader in digital banking, DBS Bank is working with government agencies and all companies to help them shift from traditional payment methods to digital alternatives such as PayNow and FAST.
Raof Latiff, Head of Digital, Institutional Banking Group, DBS Bank, said the bank has seen a five-fold increase in corporate clients requesting for digital payment solutions to be embedded into their payments processes over the last 12 months.
“Consumer behaviour is changing so quickly and businesses find themselves having to stay abreast with changing payment demands. The man-on-the-street wants to receive their payments instantly, without the need to bank in a cheque. The ubiquity of the mobile phone means that cheque payments will soon be a thing of the past and forward-looking companies are re-working their business processes to stay relevant, save time and serve their customers better.”
The insurance industry is an early adopter of PayNow. DBS is working with insurance companies to introduce instant claims payments through PayNow where only a mobile number or NRIC number is needed for approved claims to be disbursed. Currently, most insurance claims are paid through cheques which account for about 10% of corporate cheques issued by DBS in Singapore. Through such companies making such changes to their payments processes, the bank foresees a 30% reduction in corporate cheque usage by 2020.
Mr Ho Kai Weng, Chief Executive, General Insurance Association of Singapore said, “Speed and convenience are key for claimants when it comes to their insurance claims. We are making a difference in both these areas with PayNow. They will receive their payments instantaneously, and do not need to visit a bank to deposit their cheques. For our member insurers, this new way of making payments also means better operational efficiency.”
Since 2017, DBS has introduced a slew of innovative solutions as well as differentiated pricing structures to speed up electronic payments and funds transfer adoption among its corporate clients. They range from a complete waiver of monthly charges for usage of its corporate banking platform IDEAL, to dramatically reducing FAST pricing from SGD 5 to a low SGD 0.50. DBS also launched corporate bill payments via IDEAL earlier this year, enabling all its corporate clients to pay bills online. With these offerings, DBS has seen payments via FAST grow by more than 300% and digital payments increase by 25% amongst corporate clients.
DBS was also the first among its peers in Singapore to launch its revolutionary API platform, IDEAL RAPID, creating instant payments and streamlined processes for corporate customers.
1 More than 700,000 retail bank accounts are now linked to PayNow and PayNow has recorded about SGD 370 million in transaction volume as of January 2018. Source: Association of Banks Singapore
2 PayNow is a peer-to-peer funds transfer service available to customers of seven participating banks in Singapore who make up the majority of all retail transactions. Source: https://abs.org.sg/docs/library/paynow_factsheet.pdf
3 IDEAL RAPID is DBS’ application programming interface (API) gateway
4 FAST (Fast And Secure Transfers) is an electronic funds transfer service that enables customers of the participating banks to transfer Singapore Dollar funds from one bank to another in Singapore almost instantly. Source: https://abs.org.sg/consumer-banking/fast.
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.
DBS is at the forefront of leveraging digital technology to shape the future of banking, and has been named “World’s Best Digital Bank” by Euromoney. The bank has also been recognised for its leadership in the region, having been named “Asia’s Best Bank” by several publications including The Banker, Global Finance, IFR Asia and Euromoney since 2012. In addition, the bank has been named “Safest Bank in Asia” by Global Finance for nine consecutive years from 2009 to 2017.
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 its 24,000 staff, representing over 40 nationalities. For more information, please visit www.dbs.com.