DBS and Xero eases SMEs access to working capital with hyper-personalised lending solutions

DigitalCFO Newsroom | 4 May 2022

Both companies will collaborate on availing to Xero customers the option to share their transactional records from Xero’s platform with DBS

DBS today announced it has deepened its relationship with Xero, the global small business platform, to simplify the loan application process and increase access to working capital for SMEs in Singapore and Hong Kong.

Both companies will collaborate on availing to Xero customers the option to share their transactional records from Xero’s platform with DBS. By doing so, customers will be able to present a more holistic picture of their cashflow which in turn enables the bank to offer SMEs hyper-personalised credit terms and working capital limits tailored to their needs.

Joyce Tee, Group Head of SME Banking, DBS, said, “Our regular engagement with SMEs has consistently shown that cashflow needs continue to be top of mind for our clients, even as business owners seek new growth opportunities.”

Tee added, “We will continue to integrate our touchpoints seamlessly into the customer journey, so as to offer our SMEs more intelligent and intuitive lending solutions. DBS has been sharpening our digital lending capabilities by leveraging ecosystem partnerships and advanced data analytics to roll out solutions that are hyper-personalised to each businesses’ needs. DBS is pleased to take our long-standing partnership with Xero to the next level as we double down on our commitment to helping SMEs accelerate their growth.” 

Joyce Tee, Group Head of SME Banking, DBS

Despite the economy showing tentative signs of recovery, business owners are looking to shore up their balance sheets in anticipation of higher cost pressures going forward. According to the DBS SME Pulse Check Survey published in March this year, over 85% of SMEs indicated that ensuring consistent cashflow and managing costs was a key business priority in 2022.

Over the course of the Covid-19 pandemic, DBS has engaged SMEs in Singapore to extend working capital and cashflow support to them. Since 2020, DBS has approved over 14,000 collateral-free loans totalling more than SGD 6.4 billion to SMEs in Singapore, with over 90% of these loans going to micro and small enterprises.

“The expansion of our partnership with DBS is an incredible milestone for Xero in Asia. Digital tools and solutions have been a significant driver in empowering SMEs to become more resilient and competitive, but working capital is the lifeblood of small businesses everywhere,” said Joseph Lyons, Managing Director Australia & Asia, Xero.

“With DBS – our first banking partner in Singapore to offer API integrated bank feeds – we are excited to extend new offerings to our shared customers through SME financing. We look forward to continuing our work to further support SMEs with their financing needs, particularly in ensuring small businesses have the support they need to thrive.”

Joseph Lyons, Managing Director Australia & Asia, Xero.

DBS and Xero began their partnership in 2017 with a bank feed integration to give SMEs greater visibility and control over their finances with automatic bank updates. Xero is also a key partner of the bank’s DBS Start Digital Package, which is designed to help SMEs kickstart their digital transformation journey. To date, close to 400 SMEs in Singapore have tapped on Xero’s all-in-one solution to digitalise their accounting function through the DBS Start Digital Package.