Using fintech to help businesses resume work, DBS Bank takes action
DBS Bank (China) Limited has announced the introduction of a three-month relief program for MSMEs (micro, small and medium-sized enterprises). The program targets MSMEs that are significantly impacted by the epidemic and focuses on four aspects, namely interest rate cuts, remittance-fee waivers, working-capital management support and technological empowerment. It aims to effectively alleviate the challenges and burdens currently faced by MSMEs and to help them weather the tough times.
Interest rate cuts. Deduction of yuan loan interest charges is offered for all MSME clients, by capping the interest rate at 1-year LPR as announced by PBOC on January 20. This measure will significantly reduce the cost of comprehensive financing for MSMEs.
Remittance-fee waivers. Cross-border remittance fees are exempted for all IBG3 clients, existing and new.
Working-capital management support. Given the extensive impact of the epidemic, MSME clients temporarily encountering difficulties in capital or liquidity may apply to extend existing loans. DBS China will continue to provide support to the eligible MSME clients, and they will not be charged penalty or compound interests nor will their credit ratings be affected.
Technology empowering remote “contact-free” financial services. As the epidemic continues, using remote or online services is the best approach to ensure the health and safety of both our clients and staff.
DBS China’s DBS DigiDocs and DBS Digi-Onboarding provide remote digital services, allowing fast and secure online transactions, exhibiting the advantages of fintech. The DBS Digi-Onboarding, a one-stop service platform for supply chain finance, provides funds for suppliers at all levels in the ecosystem, comprising large-scale logistics enterprises that support materials logistics, which ensures adequate working capital during the epidemic.
Fighting as one against the epidemic
A key medical equipment manufacturer in Chongqing and a leading company in the wholesale and retail space for medicine and medical devices have been working closely with DBS China Chongqing Branch.
Noting the situation, DBS China Chongqing Branch extended 5 million yuan worth of credit, on top of previously extended credit, as short-term working capital to the company and its subsidiaries during the Spring Festival, using only two days to approve via its express channel.
Unlike conventional loans, the approval processing for the loan was reduced by 80 percent, and further concessions were offered where possible. DBS China Chongqing Branch optimized the credit requirements without compromising compliance and regulatory measures.
Remote services to ensure client’s safety
The Personal Wealth Management Department of DBS China updated the sales process, which previously required a prolonged facial recognition and identification of clients throughout the KYC process. Now clients are allowed to put their masks on again before proceeding to confirm their purchase. Also, digital tools enabled the provision of remote follow-up for insurance services, enquiries, update requests and submission of special claims via online express channels during the epidemic. Clients can now enjoy expedited and quality insurance services from their homes.
DBS China also joined hands with its partner Manulife-Sinochem to provide all insured clients with over one-year coverage with additional coverage supporting the recovery from the novel coronavirus pneumonia (COVID-19) in intensive care units.
Having been in operation in China for 27 years, DBS Bank has grown rapidly together with the Chinese economy and is committed to upholding its social responsibility to the community where it operates in. DBS Bank and all of its staff will stand with the customers in supporting the nation in the fight against this epidemic.