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SME Featured East Asia

DBS Hong Kong, GS1 HK adopt HKMA’s CDI initiative to power digital ‘one click’ trade financing for SMEs

Hong Kong – Consumer bank DBS in Hong Kong and non-profit organisation GS1 Hong Kong have joined hands to further enhance their innovative SME trade financing solution with the Hong Kong Monetary Authority (HKMA) Commercial Data Interchange (CDI) platform. 

The move is part of DBS Hong Kong’s commitment to providing enterprises with tailored, efficient financing services while also supporting the fintech ecosystem development led by the HKMA in Hong Kong.

DBS Hong Kong said that it plans to leverage CDI’s platform capabilities to further enhance its recently launched trade financing solution and accelerate its ecosystem strategy in Hong Kong.

Alex Cheung, managing director and head of Institutional Banking Group of DBS Hong Kong, said that the latest trade financing solution enhancement demonstrates the bank’s strong commitment to developing Hong Kong’s fintech ecosystem. 

“As a leader in SME banking, DBS is proud to be a part of HKMA’s CDI platform. Since launching our innovative digital trade finance solution with GS1 Hong Kong earlier this year, we have successfully provided SMEs with enhanced and simplified access to working capital. DBS Hong Kong is proud to be an early adopter of CDI and we look forward to working on additional use cases that leverage the platform and find new ways to increase access to funding for SMEs,” added Cheung.

In June 2022, DBS Hong Kong and GS1 Hong Kong launched a digital post-shipment trade financing solution powered by alternative data. The solution enables SMEs on GS1 Hong Kong’s ezTRADE platform to utilise their trade data to access trade financing in a digital and straight-through manner.

With the new solution, SMEs can access much-needed working capital with just one click via the bank’s corporate banking platform, DBS IDEAL. This means that SMEs no longer need to manually submit hundreds of invoices and supporting documents, reducing time and effort through the adoption of a more digital and sustainable way of doing business and seeking financing. 

Moreover, the solution redefines the trade financing journey for SMEs with DBS availing financing through a streamlined credit assessment process. Through DBS’ predictive analytics capabilities, invoice data is used to assess the financial health of SMEs, with the amount of financing available to SMEs updated on a dynamic and recurring basis.

Anna Lin, chief executive of GS1 Hong Kong, shared that the collaboration between GS1 Hong Kong and DBS Hong Kong on digital trade financing has borne fruit to many SMEs enjoying trade financing in a much simpler and digitised manner already. 

“With the CDI, I look forward to unleashing the full potential of more alternative data, enhancing SMEs’ access to financial services and nurturing the trade financing ecosystem in Hong Kong,” said Lin.

Meanwhile, Sandy Tan, head of ecosystems for Institutional Banking Group at DBS Bank Hong Kong, noted that their digital solution has redefined the trade financing journey for SMEs on GS1 HK’s ezTRADE platform, and via their collaboration, they have enabled a digital ‘one click’ transaction experience and greatly reduced the time and effort needed to acquire working capital.

“DBS Hong Kong is committed to taking an active role in further developing and growing Hong Kong’s robust fintech ecosystem. Building on the launch of CDI’s capabilities, we expect to bring our solution to the next level in customer experience while providing more offerings to support the business growth of the SME community,” said Tan.