Small and Medium Enterprises (SME’s) in China can now get faster access to trade financing as DBS Bank launched its first multi-tier financing facility on a logistics blockchain platform on Wednesday (11 Sep).
Rong-E Lian, the Blockchain platform, was set up in partnership with a chinese logistics player whose identity is disclosed and is believed to be SF Group, as per the industry sources. It offers multi-tier financing solutions to around 1000 suppliers that are part of the company’s supply chain ecosystem. SME’s that didn’t have access to trade financing due to lack of scale and credit history are also a part of these suppliers, The Straits Times reported.
The credentials of the supplier are verified by DBS within seconds by using the bank’s API and leveraging it to integrate its digital onboarding service, which requires facial biometric authentication, into the blockchain platform. The blockchain platform is also integrated with various China government databases to further validate and verify the authenticity of the transactions made by suppliers in the ecosystem to mitigate risks, according to Ginger Cheng, head of large and mid-cap corporates, DBS China.
Neil Ge, CEO of DBS China, said: “By using new technologies such as blockchain and APIs, we hope to democratise trade finance by providing SMEs more affordable and convenient access to bank credit to enable them to realise their business ambitions, serve their customers well and expand into new markets with ease.”