DBS unveils low-cost digital account for SMEs

It requires no minimum maintaining balance.

Young companies in Singapore can now opt for a low-cost and low-fuss banking experience as DBS launched a digital account for SMEs with no minimum balance required.

The financial services giant said that SMEs which sign up for the DBS digital account can save more by banking online or through the mobile app than by transacting at the bank branches.

“We have designed a digital-only account to give SME owners an option to keep banking costs low, especially when the operating environment has been more challenging in recent times. We are able to pass on some savings to SMEs and not charge fall-below fees by digitalising our processes and implementing more straight-through processing on the back end,” said Joyce Tee, group head of DBS Bank SME Banking.

DBS developed the account as SMEs are increasingly going online for their banking needs. It is also capitalising on the growing number of SMEs, which have more than doubled from 23,000 in 2004 to 55,000 in 2014. SPRING Singapore data revealed that these companies accounted for about 345,000 jobs as of 2014.

Aside from basic banking services, SMEs can also apply for loan products and bankers’ guarantee online, while on the go. They will also enjoy an annual fee waiver for the DBS Visa Business Advance Debit Card and have free access to DBS IDEAL corporate online banking and mobile app, DBS said.

Almost 60% of DBS SME business accounts are applied for online as of press time, compared to 12% in 2014. Close to half of the bank’s SME customer base have transacted via DBS’ corporate online and mobile banking platforms in the past year, DBS added.