DBS Bank is teaming up with global cloud accounting platform Xero to help small and medium-sized enterprises (SMEs) better manage their cash flows and access capital.
DBS and Xero yesterday said the partnership is centred on several aspects, including aligning their technology platforms to enable SMEs to make payments and apply for loans seamlessly.
DBS will connect the accounts of SME customers to Xero's online accounting software, allowing customers to access a consolidated, real-time view of their financial accounts, including cash in the bank, at any time.
Integrating the data on one portal will allow business owners to make smarter investment and management decisions, said DBS and Xero in a joint statement.
They aim to make the service available this year.
REAL-TIME FINANCIAL DATA
As simple as this sounds, it fundamentally changes how a business can operate - anytime, from any device, with insights - to help them make decisions on the fly.
XERO ASIA MANAGING DIRECTOR ALEX CAMPBELL, on the benefits of the company's partnership with DBS Bank.
DBS and Xero will also collaborate to capitalise on technology tools known as application programming interfaces, to make business-to-business payments easier.
The aim is to allow a DBS and Xero customer to access capital more efficiently, the companies said.
SMEs can also allow banks to access their real-time financial data, and this may help remove much of the administrative burden for the firms when they apply for loans.
Ms Joyce Tee, group head of SME banking at DBS, said the partnership will help SME clients make better business decisions by making cash-flow management transparent and simple.
"In addition, as the bank will have better access to the SMEs' financial data, the application process for bank loans will be further streamlined and simplified," she added.
Xero Asia managing director Alex Campbell noted that bank feeds - which allow SMEs to automatically import account transactions into Xero from banks or financial institutions - enable data to be shared securely, making it easier for SMEs to conduct business.
He said: "It enables small-business owners, working in the cloud, to do their bank reconciliations on their mobile phone while travelling to work, or capture a daily view of their cash flow - thus ending the monthly stress of catch-up when consolidated bank statements come through.
"As simple as this sounds, it fundamentally changes how a business can operate - anytime, from any device, with insights - to help them make decisions on the fly," added Mr Campbell.