DBS Bank pursues digital innovation with Infor

Two companies went live with Cloud-based platform.

Southeast Asia-based, DBS Bank has integrated digital trade financing capabilities into the Infor Nexus global network of about 68,000 businesses.

The two companies’  joint program recently went live with one of the world’s largest global apparel companies, providing digital trade financing to suppliers in the apparel company’s supply chain ecosystem, which comprises mostly small-to-medium-sized enterprises (SMEs).

DBS is a digital bank, based in Asia, focused on supplier funding and liquidity. The financial organisation has been in pursuit of digital innovation and delivering value to supply chains, combined, using a cloud-based platform, said Sriram Muthukrishnan group head of trade product management at DBS Bank.

“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,” he said. “Data forms the backbone of a successful digital strategy and its impact across multiple industries globally has been growing exponentially.”

Using Infor’s cloud platform will help DBS show greater transparency into its “complex supply chains” and provides insights into the transaction patterns between an anchor and its ecosystem of suppliers, said Muthukrishnan.

“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,” he said. “This is especially relevant today, as we continue to operate in an environment characterised by prolonged trade disruptions and tighter credit lines, where optimal working capital management is key to survival.”

The two companies’ next joint program for pre-shipment finance, expected to launch in late 2020, will utilse supply chain data as the primary conduit to assess risk and credit worthiness, as opposed to traditional models that result in the majority of suppliers being under-funded or facing challenges to access necessary capital.

According to a research report from Aite Group analyst Enrico Camerinelli (The Supply Chain Bank, 2018), with in the next three years, the competitive frontier in corporate lending and supply chain finance will be the creation of innovative credit risk models that banks will use to leverage corporate supply chain process data.

“Banks will capture and analyse events in the physical supply chain (source-to-pay, order-to-cash) in order to generate a more comprehensive and realistic representation of a company’s risk profile,” he said.












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