DBS HK and GS1 HK look for more digital trade solutions for SMEs

DBS Bank (Hong Kong) has partnered with barcode issuer GS1 Hong Kong to launch an on-demand digital trade financing solution for SMEs to utilise their trade data to access financing in a digital and straight-through manner. With this offering, small and medium-sized enterprises (SMEs) on GS1 Hong Kong’s ezTRADE platform can now utilise their trade data to access financing in a digital straight-through manner instead of manually submitting hundreds of invoices every month.

The partnership has now launched and is open to all SME suppliers on GS1 HK’s ezTRADE platform. GS1 HK is the local chapter of GS1, which supports companies’ digitalisation to enhance supply chain transparency and efficiency and a full spectrum of standard-based platforms, solutions and services.

Currently, GS1 HK has around 8,000 corporate members covering close to 20 industries including retail consumer goods, food and food services, healthcare, apparel, logistics as well as information and technology, according to the press release of DBS HK. 

The idea of the partnership uses trade transaction data to provide SMEs in the fast-moving consumer goods (FMCG) and food & beverage (F&B) sectors with a digital post-shipment trade solution. This paperless approach to trade financing not only frees SMEs from repetitive document submission, but also paves the way for more digital and sustainable business practices, according to DBS HK. This solution redefines the trade financing journey for SMEs with DBS availing financing through a streamlined credit assessment process.

In terms of the marketing strategies built on the partnership, DBS has kicked off its promotion on the co-created digital trade finance solution to SMEs in Hong Kong in a 360 degree approach that targets SMEs already using GS1 Hong Kong’s ezTRADE platform. 

In order to tailor innovative solutions based on SMEs needs, the partnership also strives to leverage the synergy from the partnership and activate a series of online and offline programs. DBS Hong Kong has worked closely with GS1 HK to reach out to their members, through exhibitions, roadshows, webinars and one-on-one consultations. In the online space, both parties have leveraged each other’s owned channels to provide digital nudges to dial up the awareness of this solution. The innovative solution powered by trade data has also created media appetite, generating stories in numerous media outlets – especially from those with a technology focus..

In addition, DBS HK has introduced a specially-designed HK$180,000 online account opening offer package for SMEs. With DBS, SMEs can also raise up to HK$8 million in funding without pledging collaterals to relieve from financial pressures, "Through these avenues, we strive to provide our SME clients with the boost they need to meet their business demands and expansion goals." spokesperson of DBS HK added. 

Alex Cheung, managing director and head of institutional banking group of DBS Hong Kong, said the partnership demonstrates the bank’s steadfast commitment to the SME community, “As a leader in SME banking, DBS is proud to partner with GS1 Hong Kong to support companies with timely working capital in this challenging business environment. By enabling the use of their trade data for enhanced access to financial services, SMEs can further fortify their business resilience.”

“This is an optimised solution that is available to all GS1 Hong Kong members using the ezTRADE platform for transactions. SMEs can enjoy a fast turnaround time and draw down on their facility to meet the needs of their business,” Cheung added.

Anna Lin, chief executive of GS1 Hong Kong commented: “This new partnership with DBS capitalises on our platform’s rich datasets to enhance SMEs’ cash flow, bringing great value to our members in their continued digitalisation journey. As one of the early participants of the Hong Kong Monetary Authority’s Commercial Data Interchange (CDI) pilot initiative, we aim to nurture a collaborative digital trade finance ecosystem – building on our close collaboration with more financial institutions and delivering innovative solutions for the Hong Kong business community”.

Sandy Tan, head of ecosystems for institutional banking group at DBS Bank HK, shared: “This digital solution was borne out of DBS’ ongoing commitment to meeting our SME customers’ needs in new and innovative ways. By leveraging digital ecosystems, we are pleased to be able to enhance the SME customer journey further by providing trade financing via a digital ‘one click’ transaction experience.”

“SME suppliers receive hundreds of invoices per month and may have limited resources to submit documentation to the bank for trade financing purposes. Through our collaboration with GS1 Hong Kong, we have the ability to use alternative platform data to give us visibility on an SME’s health and support their working capital needs,” Tan added.

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