DBS Makes Steady Headway in Digitalising Trade; Completes First Fully Digital Trade Financing Settlement on Singapore’s Networked Trade Platform

Published 

Singapore – Advancing Singapore’s trade digitalisation agenda, DBS Bank, in collaboration with Audi Singapore (Audi) and Audi’s local distributor, Premium Automobiles (Premium), completed the first trade financing transaction on Singapore’s Networked Trade Platform (NTP). The inaugural trade relates to a SGD3.5 million letter of credit transaction for a trade of Audi cars between Audi and Premium.

In the traditional world of trade, car importers, such as Audi, have to physically present an array of paper-based trade documents to complete a letter of credit transaction. However, by digitalising the process through the NTP, Audi and their retail partner Premium, are now able to submit bank applications, as well as send and receive trade documents online. In turn, this enables DBS to receive and start processing the e-applications in real-time, cutting short the trade financing processing time from about a week to under one working day, yielding greater operational efficiencies for both buyer and seller. In addition, as trade documents are uploaded onto the NTP, all trade participants are able to enjoy real-time updates on the progress of their transaction, enabling them to better plan their working capital needs.

Sriram Muthukrishnan, Group Head of Trade Product Management, DBS Bank, said, “Technology continues to fundamentally reshape the world of trade and finance. With digitalisation, trade information is increasingly democratised and interoperability between trade platforms is enhanced, enabling companies around the world to trade more efficiently and seamlessly with each other. The NTP is a landmark initiative that enables disparate client activities to come together in a secure and efficient digital environment. As a bank, we continue to be passionate about ensuring our corporate clients are well-equipped to ride the wave of digital trade innovation globally.”

Markus Schuster, Managing Director, Audi Singapore, said, “Audi is a progressive company and we believe that we should utilise all the advantages of the connected world. We engineer digital solutions in our cars, our mobility services and in all areas of our business process. We look for ways to do things better; with better security, greater accuracy, more efficiencies and greater benefits to our customers and partners. That’s why we are keen to use the platform.”

Lee Hoe Lone, Managing Director, Premium Automobiles, said, “We are very pleased to be part of this digital initiative. As the exclusive retail partner of Audi cars in Singapore, Premium Automobiles is constantly pushing forth digitalisation of business processes. This initiative aligns with the bigger objective of our company’s initiatives in achieving business efficacy and efficiencies.”

Serene Ho, Director of Networked Trade Platform Office (NTPO), said, “Digitalising a traditionally paper-centric trade ecosystem requires support from like-minded industry partners who embrace technology and change. NTPO congratulates DBS Bank, Audi Singapore and Premium Automobiles on completing its first trade finance transaction on NTP. NTP will continue to work with financial institutions and industry partners to realise Singapore’s vision of a paperless trade ecosystem.”

The first transaction marks a critical step towards transforming documentary trade, of which domestic letters of credit constitute around USD150 billion of Singapore’s trade flows. DBS, Audi and Premium are currently working on the second trade on the NTP valued at SGD2.8 million.

DBS is also one of the key banks leading the Trade Finance Compliance (TFC) initiative, which is a digital service on the NTP to boost trade security in Singapore. Launched in September 2019, the TFC service aims to tackle trade finance compliance challenges by addressing obstacles faced by financial institutions when financing trade in Asia, such as trade fraud risks and the lack of reliable data to conduct price checks for non-commoditised goods – which often do not have established pricing benchmarks. DBS is also one of the nine leading banks on CamelONE Trade Finance™, a NTP-integrated multi-bank trade finance application portal that simplifies the application for trade financing through the use of a standard application form across multiple banks.

Committed to developing digital trade ecosystems and platforms

Since 2018, DBS has launched several ecosystems and platforms to encourage companies to move towards digital trade. To find out more, please click on the following links:

Most recent episodes

Advantage Treasury

Eleanor Hill is joined in the virtual TreasuryCast studio by Nicolas Cailly and Philippe Penichou (Societe Generale) to look at treasury trend predictions for the remainder of 2022, with a particular focus on virtual accounts. In this deep dive into current and future treasury priorities, our guests consider...

24:22

40th Annual New York Cash Exchange: What Can Treasurers Expect?

Ahead of the 40th annual New York Cash Exchange, two of TMANY’s distinguished board members, David Miller and Timothy T. Hesler, CTP, provide TMI CEO, Robin Page, with a quickfire rundown of what attendees can expect from this year’s conference. Our guests share their aspirations for the event,...

09:58

Expectation-Beating Inflation Prints Ratchet Up Pressure on Monetary Policy

Welcome to the third edition of Liquidity Link Live, your exclusive market analysis provided by Northern Trust Asset Management, one of the world’s largest cash managers. Tune in each month to discover the very latest insights on the UK, Eurozone and US markets. This edition was recorded on the 9th May...

04:48

Making the Sustainable Transition: A Roadmap to ESG in Treasury

Over the last 18 months, Societe Generale has experienced a steady increase in requests from their corporate clients to integrate ESG features in treasury management.  Louis-David Rouyer, Philippe Pougeard, and Emmanuelle Petelle (Societe Generale) provide TMI’s Eleanor Hill with a whistlestop run...

22:24

Lift Off for Fed Rate Rises

Welcome to the latest edition of Liquidity Link Live, your exclusive market analysis provided by Northern Trust Asset Management, one of the world’s largest cash managers. Tune in each month to discover the very latest insights on the UK, Eurozone and US markets. This edition was recorded on the 5th of...

04:58

Treasury in 2022 and Beyond

Industry experts Bob Stark (Kyriba) and Sebastian di Paola (PwC) join TMI’s Editor, Eleanor Hill, to explore the very latest treasury trends – and to discuss how smart treasurers can get ahead of the game by ...

43:21

How BearingPoint Harnessed Data-Driven Forecasting with CashAnalytics and SAP

Listen back to our recent forecasting masterclass, where Group Treasurer Eveline Stam, and Conor Deegan (CashAnalytics) provided TMI’s Eleanor Hill with a comprehensive overview of how consultancy firm BearingPoint achieved company-wide cash forecasting nirvana by combining specialist solutions from...

37:14

The 3 T’s of The Future: Tech, Treasury, and Transformation

Over the past two years, an increasingly dynamic environment has not only accelerated technology development – from quantum computing to blockchain technology, and even the metaverse – but also technology adoption, bridging colleagues and breaking down silos in a remote work world. In this podcast,...

44:02

Monetary Policy Continues to Drive Markets as Ukraine Invasion Weighs on March Meetings

Welcome to the second edition of Liquidity Link Live, your exclusive market analysis provided by Northern Trust Asset Management, one of the world’s largest cash managers. Tune in each month to discover the very latest insights on the UK, Eurozone and US markets. This edition was recorded on the 3rd of...

05:25

Tax Spotlight: How the OECD’s Two-Pillar Solution Impacts Treasury

Aaron Lee and Joseph Lee (DBS Bank) join TMI’s Eleanor Hill to discuss how the OECD’s Two-Pillar Solution aims to address the tax challenges arising from the digitalisation of the economy. Ahead of the 2023 implementation date multinational corporates will have much to consider around these reforms....

24:00