SINGAPORE (BUSINESS TIME) – DBS provided over 12,000 unsecured loans to small and medium-sized enterprises (SMEs), totaling over S $ 6.2 billion, including nearly S $ 1 billion in unsecured loans approved in the year to date.
The bank said in a press release on Monday that the “vast majority” or 99 percent of loans issued in the second quarter of 2021 went to micro and small businesses.
He added that these loans were issued primarily to sectors that continue to bear the brunt of the Covid-19 pandemic. Sectors include food and beverage, retail and construction.
Citing a recent DBS SME Pulse Check Survey, the bank also noted that working capital and liquidity issues remain a major concern for SMEs. Ensuring sufficient cash flow and managing overheads was highlighted as top business priorities for nearly 200 micro and small businesses surveyed in May this year.
As such, DBS has today introduced a new digital loan acceptance solution to its small and medium-sized business clients, which allows them to digitally accept loan offers through Ideal, an online banking platform for corporate clients.
Not only will this allow SMEs to gain even faster access to working capital during the last round of Phase 2 (heightened alert), but it could also save SMEs up to a month in certain cases, the bank said in a press release.
The bank said the contactless nature of the digital loan process also helps protect the health of SME owners and their employees amid the ongoing pandemic.
“Cash flow concerns will not disappear anytime soon, so we are focused on ensuring that SMEs receive the required working capital in their bank accounts with minimal delay,” said Joyce Tee, Head of SME Banking at DBS.
“With the industry’s first digital lending solution (on Ideal), DBS dramatically accelerates SMEs’ access to vital working capital, saving valuable time for business owners. By making banking more intuitive and invisible, our SMEs will be able to focus on the more powerful aspects of strengthening their business during this period. ”
Other improvements that are being made to the DBS loan application process include streamlining the overall digital loan application processing cycle; integrating SingPass authentication into the loan application process; and providing real-time tracking of application status.