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DBS Improves Commerical Customer Operations Through Deep Tier SCF

Tier 2 and Tier 3 suppliers are onboarded leading to lower costs. ​

Company Overview

DBS Singapore, also known as DBS Bank, is a multinational banking and financial services corporation headquartered in Singapore. With a history that dates back to 1968, DBS has grown to become one of the largest banks in Southeast Asia, offering a wide range of banking products and services to individuals, businesses, and institutions.

DBS Singapore is also recognized for its commitment to sustainability and social responsibility, as well as its innovative use of technology to improve customer experience..

Problem Statement

DBS Singapore faced a challenge in gaining visibility into the financing requirements of the tier 2 and tier 3 networks of suppliers of the bank’s commercial customers. This resulted in commercial customers experiencing higher costs and increased lead times due to credit and liquidity issues at their suppliers.

The complex nature of the deep tier financing business process added to the challenge faced by DBS. Additionally, there was hesitation from tier 2 and tier 3 suppliers to join the network, the hesitation was on learning new technology and systems.

Solutions

To address the challenge of multi party and multi tier Supply Chain Finance, DBS Singapore leveraged its digital capabilities and expertise in data analytics to develop a solution that provided real-time visibility into the financing requirements of the suppliers.

The bank used its expertise on the #dltledgers Platform that allowed Commerical Customers to easily on board Tier 1, Tier 2 and Tier 3 suppliers to upload their invoices and receive early payments from DBS Singapore.

This solution not only helped the bank to better understand the financing needs of its commercial customers’ suppliers but also enabled suppliers to access financing at competitive rates, thereby improving their financial health and reducing the risk of disruption to the supply chain..

#dltledgers uses blockchain for digitalising cross border trade contracts, providing a digital repository of transaction documents in multi-tier, with auditability, track and trace, sustainability, and integrating with the flow of money​.

Raof Latiff
Group Head of Digital, Institutional Banking, DBS

Benefits

  • Deep-tier SCF (Supply Chain Finance) provides benefits to Tier 2 and Tier 3 suppliers who are at most risk and provide the biggest benefit in increasing speed and reducing risk in the Supply Chain​.
  • Improving Finance availability to Tier 2 and Tier 3 help reduce material costs and decrease lead times for delivery and fulfilment.​
  • Large Enterprises gets increased ecosystem visibility across the multi-tiers in the value chain, supporting their sustainability/ESG policy as well as financing needs​.
  • The solution helps to mitigate risk in the multi-tier supply chain framework with deep-tier visibility, auditability and track/trace capability on data/document flows.

Product Capabilities

  • Easy Network Creation and onboarding multiple parties.​
  • Digital Assets configured to be maintained as part of the distributed ledger with blockchain​.
  • Real Time notification to expedite and avoid any delays in shipments across multiple parties​.

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