Southeast Asia’s largest bank DBS Bank plans to integrate digital trade financing into Infor Nexus global network of more than 68,000 businesses, the media reported.
In order to do so, DBS is partnering with Infor, a global leader in business cloud software.
In this regard, Sriram Muthukrishnan, Group Head of Trade Product Management, DBS Bank told the media, “We continue to accelerate the deployment of our market-leading supply chain financing and digital capabilities to ensure steady financing to SME suppliers during these times of stress. Data forms the backbone of a successful digital strategy and its impact across multiple industries globally has been growing exponentially.
“Our collaboration with Infor enables greater transparency into complex supply chains and provides insights into the transaction patterns between an anchor and its ecosystem of suppliers. We leverage these insights to provide quicker and more cost-efficient financing to suppliers much earlier in the cycle, as compared to conventional post-shipment supplier financing programs. This is especially relevant today, as we continue to operate in an environment characterized by prolonged trade disruptions and tighter credit lines, where optimal working capital management is key to survival,” he added.
Earlier this year, the Singapore-based completed its first digital trade deal using the Networked Trade Platform (NTP), the bank said in a statement. The parties involved in the transaction were DBS Bank, Audi and its local distributor Premium Automobiles.
The trade deal which was completed by DBS Bank using the NTP relates to a $2.5 million letter of credit transaction between Audi and Premium Automobiles.
While traditionally, the whole process would take almost a week for it to be completed, now using NTP, DBS Bank completed it within 24 hours.