Transforming SME Financing with Advanced Technology
DBS Bank has launched an AI-driven solution designed to provide small and medium-sized enterprises (SMEs) with quick access to working capital of up to S$300,000. Introduced on Tuesday (Oct 18), the new tool, DBS Quick Finance, aims to address pressing financial challenges faced by SMEs, including inflation, supply chain disruptions, rising interest rates, and the upcoming goods and services tax hike.
This cutting-edge solution leverages hyper-personalised AI and data analytics to streamline the application process. According to DBS, SMEs can complete their financing application in under one minute, receive approval within one second, and, in some cases, access funds instantly—without requiring additional paperwork.
Businesses can choose between a flexible overdraft option or a structured working capital loan with monthly repayments, tailoring the solution to their specific needs.
Proactive Financial Support for SMEs
Gene Wong, Head of SME Banking (Micro & Small Segment) at DBS, emphasised the bank’s commitment to supporting SMEs through turbulent times. He highlighted the challenges posed by inflationary pressures and global uncertainties, stating that DBS is leveraging its digital expertise to anticipate and address financial needs before they escalate.
“DBS aims to enhance our support for micro and small enterprises by utilising advanced data analytics to deliver precise, proactive assistance,” said Mr Wong.
Enhanced Collaboration for Simplified Loan Processes
DBS has also partnered with global accounting platform Xero to simplify loan applications for SMEs. By sharing transactional records directly from Xero’s platform, businesses can benefit from customised credit terms and loan amounts tailored to their financial patterns and needs.
This collaboration further underscores DBS’ dedication to leveraging technology to support SMEs. The bank noted that this feature allows for a deeper understanding of businesses’ cash flow, enhancing the accuracy of credit assessments.
Continued Commitment to SMEs
Since 2020, DBS has approved over 16,000 collateral-free loans amounting to more than S$7 billion, with over 90 per cent of these funds allocated to micro and small enterprises. The 2022 DBS SME Pulse Check Survey revealed that over 85 per cent of SMEs prioritised cash flow consistency and cost management.
Through innovative solutions like DBS Quick Finance and partnerships with platforms like Xero, DBS continues to reinforce its role as a key financial partner for SMEs in Singapore, enabling them to navigate challenges and seize growth opportunities.
