Mobile app combats SME cash flow problems in Singapore

DBS MAX is a mobile app to encourage SMEs to adopt digital payment solutions, which may go some way to overcome late-payment related cashflow issues in Singapore

In an all-out push to get small and medium enterprises (SMEs) to adopt digital payment solutions, DBS will be launching Singapore's first mobile-based QR payment collection solution that will enable SMEs to receive funds instantly from their customers and vendors. The solution named DBS MAX will be available to all DBS SME and corporate customers from 26 November.

According to the 2017 SME Development survey, more than one in three SMEs in Singapore face finance-related issues. Of these, more than eight in 10 attribute their finance woes to cash flow issues resulting from delays in customer and vendor payments.

DBS MAX addresses these concerns by enabling SMEs to receive payment from their customers and vendors through a mobile app in real-time. This does away with the need for businesses to wait two working days for cheques and credit card payments to be cleared.

Jasmin Ng, group head of cash product management at DBS Bank, says, "Cash flow is the lifeblood of a SME. It is also critical to their success and overall viability. Apart from developing solutions to help our clients deliver an enhanced customer experience, we also look at ways to optimise their cash flows and improve their working capital management. This is important as SMEs form the backbone of Singapore's economy, employing two-thirds of our workforce and contributing more than half of our GDP."

Following the launch of DBS MAX in Singapore later this month, the bank will roll out the solution in its next largest market, Hong Kong, by December this year. The objective is to reach over 6,000 SMEs over the next six months, with plans to implement the solution in the bank's other key markets in the coming year.

Once the DBS MAX app is installed onto their business' mobile device, all a business owner and/or employee needs to do is to generate a QR code on his/her mobile device before letting the customer scan it, and the transaction is complete when a payment notification is received. The funds received from the transaction would then be credited to the business' bank account instantly, and all sales will be automatically consolidated in a report at the end of each day.