Partnerships are essential for any institution seeking to harness the opportunities of Asia’s dynamic markets, especially in today’s fast-paced business environment. Regional partners bring local knowledge, experience, and access to new markets and customers.
The need for partnerships can be seen in both a global and regional context. No single bank or financial institution has a complete global set of services, and a local or regional partner can support non-core areas. Regardless of geopolitical noise, the world remains closely connected and customers expect seamless service in all markets.
Supply chains may change, but the need for global trade and its accompanying banking services remains as important as ever.
In a regional context, it is important to recognize that Asia is not a homogeneous market. In addition to differences in culture and languages, each jurisdiction has its own rules, licensing requirements and currency regimes, often differing widely.
Asia is characterized by urbanization and high levels of technology adoption. There will be 1.4 billion mobile internet users in the country in 2023, and the number is expected to grow to 1.8 billion by 2030.1. The rapid pace of adoption and disruption in digital technology is challenging financial institutions to keep pace with customer expectations.
Asia is also increasingly driven by ESG considerations and the need for sustainable finance.
All of these factors require partnership. Individual institutions cannot keep abreast of all the evolving regulatory, demographic and cultural changes in Asia; Partners with a local presence can help with compliance by sharing expertise and resources, as well as connections and insight into local consumer behavior.
Fintech Partnership: Turning Digital Change into Opportunity
Without a doubt, the digital revolution has accelerated the development of the partnership theme. While there are areas where banks and fintech companies are in direct competition, there are also many areas where banks and fintech companies can strategically leverage each other’s strengths and partner to improve their products and services to better serve their customers. .
The nature of such partnerships can take many different forms. One is partnering with fintech companies to enter underserved markets, allowing banks to expand their reach into previously neglected segments such as micro-SMEs and bringing the benefits of financial inclusion to more sections of society. Another goal is to support fintech companies in their business, providing banking services, including access to payment infrastructure, capital markets and financing.
Banks can also invest directly in fintechs or create them directly, as DBS did: one of the founders of the open industry blockchain initiative Partigor.2for example, and the creation of the DBS digital exchange3 and DBS Globesend4 payment fintech technologies from scratch within the bank.
Government Partnership and Community Support
At DBS, partnerships with the public sector are particularly important. Since DBS’s inception as the Development Bank of Singapore, it has been part of the bank’s DNA to support community initiatives, guided by a strong sense of purpose. DBS has demonstrated its commitment to public good in a variety of ways, such as distributing Singapore’s Covid-19 relief payments and providing government grants to Enterprise Singapore.5 using the bank’s best practices in the field of blockchain.
Two other examples from the region illustrate this theme. DBS has partnered with the Indonesian Investment Authority (INA).6) to support the development of Indonesia’s infrastructure sector, including the provision of financial advice, investment banking expertise and advisory services. This, in turn, supports Indonesia’s economic growth and development.
Another project is a US$500 million loan launched in partnership with the International Finance Corporation (IFC).7), which aims to provide finance to businesses in developing countries, promote economic growth and support trade flows.
By engaging governments and building trust in both the public and private sectors, DBS supports growth and development in the region. This is especially important when developing a sustainability agenda that brings together public and private actors to address an existential challenge in a coordinated manner. The threat of climate change cannot be mitigated without partnership.
Ideal partner
DBS is uniquely positioned as a partner to financial institutions. First, it offers regional expertise and an extensive network across three key Asian growth areas: Greater China, Southeast Asia and South Asia. Partners can leverage DBS’s local knowledge and connections to navigate Asia’s complexities and risks.
Its home base of Singapore has established itself as a gateway for global investors to access opportunities in Asia. But DBS has roots far beyond its home, with a presence in 19 markets across Asia and beyond. DBS is currently one of the top three foreign banks by RMB clearing and has a full range of banking and markets capabilities, offering financial institutions connectivity to China; its extensive presence in India is now strengthened by its Gift City banking division; and it provides pan-Asian correspondent banking services. DBS provides connectivity in Asia and the rest of the world.
DBS is a recognized leader8 in digital banking and has invested heavily in technology and innovation, including APIs, tokenization and blockchain. Underlying these differences is DBS’s financial strength and stability, with strong credit ratings.9 and a reputation built on trust. DBS is a safe and reliable counterparty in times of market volatility.
At the heart of DBS is a commitment to strengthening relationships. It is a customer-centric bank with a deep understanding of Asia and security experience. These qualities make it an ideal partner for financial institutions in the private and public sector – at a time when partnership is more important than ever.
