DBS Is First Bank to Partner JD Logistics on Digital Platform to Finance SMEs in Cross- Border E-Commerce Import Business
Partnership will significantly improve cash flow for SMEs and allow consumers in China to gain access to international brands
DBS announced it is the first bank to partner with JD Logistics (JDL), the supply chain and logistics business group of JD.com, to provide supply chain financing to Hong Kong-based small and medium-sized enterprises (SMEs) in the fast growing cross-border e-commerce import business. This is also DBS’ first digital solution for e-commerce merchants on a logistics platform.
Through this partnership, DBS will provide supply chain financing to JDL’s e-commerce SMEs who place their inventory from international brands in JDL’s bonded warehouses and sell the imported goods on JD Worldwide (JDW). With the shift to online shopping, this will significantly improve e-commerce merchants’ cash flow needs to meet the growing demand from Chinese consumers for a variety of imported quality products from international suppliers.
Leveraging DBS’ Application Programming Interface (APIs), the bank will integrate its digital service into JDL’s blockchain platform to enable real time exchange of data and end-to-end digital experience. JDL will be able to refer e-commerce merchants who require financing to DBS. The bank will approve these applications based on real-time supply chain transaction data, such as inventory and sales proceeds collected from the end consumer, from JDL’s supply chain platform. This reduces the physical documentation required. As added convenience in this pandemic environment, DBS can conduct remote account opening and customer identification and verification via video conference.
Once onboarded, merchants will be able to view their available balances and outstanding loans, as well as to initiate drawdown on a pool of eligible assets, with just ‘one click’ on the JDL supply chain platform, with funds disbursed quickly.
Alex Cheung, Managing Director and Head of Institutional Banking Group, at DBS Hong Kong, said that this partnership will strengthen the bank’s Greater Bay Area strategy by growing its cross-border SME franchise.
“As a leader in SME banking, DBS is pleased to partner with JD Logistics, to further support companies with timely working capital and supply chain resilience, amid the current challenging business environment. We also affirm our long-term commitment to the Greater Bay Area, and are growing our cross-border SME franchise and harnessing technology, to help customers capitalise on the immense opportunities the region has to offer.”