DBS Bank has launched a working capital advisory programme – the first of its kind by a bank anywhere in the world – that helps businesses of all sizes analyse both their physical and financial supply chains and reduce their overall banking costs.
DBS has developed a set of proprietary benchmarking and diagnostic tools which will provide clients with customised research and insights, allowing them to identify and unlock trapped cash, the bank said. During a pilot programme, participating companies were typically able to identify a 20-30% increase in the cash flow generated from their operations.
Said Tom McCabe, Head of Global Transaction Services, DBS Bank, “Client feedback on this programme has been incredible. Our analysis provides corporates with insights that enable them to generate more cash flow internally, reduce their counterparty risk and drive more operational efficiencies. This is an industry first, and it moves the discussion from transactional to value creation.”
DBS’ transaction banking business has been one of the bank’s strategic priorities since 2010. The GTS business generates nearly S$1.5 billion in revenue annually, and has delivered a 29% CAGR over the last four years.