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 cross-border e-commerce import business. This is also DBS’ first digital solution for e-commerce merchants on a logistics platform.
DBS will provide supply chain financing to JDL’s e-commerce SMEs. With the shift to online shopping, this is expected to 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.
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. This will be done by leveraging DBS’ Application Programming Interface (APIs).
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. Remote account opening and customer identification and verification can be conducted via video conference by the bank.
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 ‘one click’ on the JDL supply chain platform, with funds disbursed quickly.
Tan Su Shan, Group Head of Institutional Banking, DBS, said that this partnership will strengthen the bank’s Greater Bay Area strategy by growing its cross-border SME franchise.
“DBS is delighted to partner with JD Logistics as we continue to help companies grow in the on-going difficult business environment, by providing timely working capital and building supply chain resilience so they can operate undisrupted. At the same time, we affirm our long-term commitment to the Greater Bay Area by growing our cross-border SME franchise and harnessing technology to help customers capitalise on the immense opportunities the region has to offer.”
“Goods usually take months to be transported and distributed. Thanks to the partnership with DBS, it will greatly improve the efficiency of supply chain for imported products and merchants’ cash flow which they need to finance their on-going business operations,” said Bing Fu, Head of Strategy of JDL.
“We hope that through partnering with DBS, and by leveraging both JD’s logistics and retail supply chain capabilities, we can provide merchants with a more complete and integrated supply chain solution,” said Stard Huang, President of the International Logistics Division of JD.com. Merchants who will benefit from this partnership are a niche segment of merchants, typically Hong Kong-based SME trading entities, with Chinese parentage.
