Collaboration is key to seizing opportunities in the changing payments environment
The modern financial institution (FI) faces a challenging environment but compelling opportunities in Asia.
Asia is the engine of global economic dynamics: according to the IMF, it will account for 60% of global growth in 2024 and is home to 60% of the world’s population.
But it is also difficult to navigate. In addition to cultural and economic diversity, Asia also places greater demands on advanced digital technologies for financial institutions, with a growing emphasis on instant, simple services and real-time information. According to the International Trade Administration, 70-80% of the Asia-Pacific region’s 670 million population is projected to grow to more than US$28.9 trillion by 2026, and there is a huge opportunity to exploit it.
Future-ready solutions to unlock opportunities
With the development of the digital economy, global cross-border payment flows are expected to exceed US$250 trillion by 2027. However, cross-border payments on existing networks are not 24/7, costly, and opaque. This is especially true in Asia given the diversity of development and regulation across jurisdictions. This is becoming increasingly important as the trend towards small value transfers grows, driven by mobility, migration and cross-border e-commerce.
As financial institutions look to expand their cross-border payments capabilities, the challenge is not only entering new corridors, but also managing complex currency volatility and compliance.
Instead of building payment networks from scratch, forward-thinking institutions are leveraging partnerships for innovative solutions. An example is DBS Globesend, an API-based solution that simplifies cross-border payments for financial institutions and payment service providers. Covering 132 currencies in 190 markets with 24/7 transaction capabilities, the solution combines the flexibility of fintech with the security of DBS’s 16 years of experience as Asia’s safest bank.
Real-world applications of this approach are already underway. Mashreq, for example, uses Globesend’s DBS to offer same-day and near-instant peer-to-peer cross-border payments to its retail customers in Asia Pacific, Europe and the Americas. This collaboration demonstrates how financial institutions, working together, can strengthen connections between regions, offering increased convenience and efficiency for both businesses and end consumers.
Asia’s diversity also extends to the range of its payment infrastructure. Although existing payment systems provide highly efficient domestic transfers, they are inherently disconnected for cross-border transactions, resulting in fragmentation of the cross-border space.
DBS can provide instant connectivity, which is lacking today. It has access to eight real-time market infrastructures and, through its proprietary and non-proprietary networks, has created the ability to make same-day payments across 12 Asian currencies and jurisdictions with confidence, speed and cost-efficiency.
With recent industry efforts to integrate payment systems, DBS is playing a leading role in these tie-ups – Singapore’s PayNow with PromptPay in Thailand, UPI in India and Duitnow in Malaysia – and is the settlement bank for all of these integrations. It also provides customers with direct access to CIPS, China’s cross-border interbank payment system, for efficient RMB payments.
New technologies offer huge opportunities to make payments more efficient, and DBS is at the forefront of this transformation. An example is the company’s innovative participation in Partior, a blockchain-based platform designed to transform interbank value movements in the digital age. Partior provides a 24/7 multi-currency settlement network with pre-verification and anti-money laundering (AML) checks built into the clearing process, improving the speed, security and transparency of global transactions.
Global payments infrastructure is a public good the world needs. Stronger payment systems provide greater access to mainstream financial flows for low-income communities and help financial institutions attract customers who would otherwise be out of reach. DBS advocates for the standards and technologies that enable this infrastructure to operate. Initiatives such as Partior, DBS Globesend and international real-time rail payments form part of DBS’ efforts to connect the world of payments, benefiting businesses, end consumers and communities.
The Power of Collaboration
Collaborating with institutions that have strong regional expertise, digital leadership and transformative solutions is key to navigating the complexities of today’s multipolar world.
In an environment where financial institutions must use a diverse range of currencies for payments, Singapore’s global connections as a leading financial center – and DBS’s positioning of Singapore as its base – offer strategic advantages.
DBS also has an extensive network in Greater China, Southeast Asia and South Asia, covering key emerging economies around the world, supported by an international hub and a network of sales offices to connect with the rest of the world.
With technology transformation a key part of the bank’s DNA, DBS’s microservices architecture and cloud capabilities enhance its ability to deliver payment services at greater speed and reach to its financial customers.
Indeed, no bank can work alone: the partnership model is especially valuable in a market as complex as Asia. The ideal partner is pragmatic and able to find solutions to real problems; someone who is also customer focused and committed to helping the business grow. Financial institutions that work with a partner like DBS will find someone who can help them build their future.
