DBS Group Holdings Ltd.
22/08/2024 | Press release | Distributed by Public on 22/08/2024 17:37
DBS pilots programmable grant disbursements with Enterprise Singapore and Singapore Fintech Association to improve governance and efficiency of government payoutsSingapore.22[...]
DBS pilots programmable grant disbursements with Enterprise Singapore and Singapore Fintech Association to improve governance and efficiency of government payouts
Singapore.22 Aug 2024
Programmable grant disbursements seek to enhance governance, operating efficiencies and user experience over government payouts
Programmable disbursements made to 27 local fintechs through a pilot in collaboration with EnterpriseSG and Singapore Fintech Association
Solution builds on DBS' multi-year participation in the Monetary Authority of Singapore (MAS)-led Project Orchid
Singapore, 22 Aug 2024 - DBS has successfully piloted programmable grant disbursements to streamline government disbursements to businesses. The pilot demonstrates how government agencies can explore the use of this solution to execute disbursements more efficiently with greater governance controls and an enhanced user experience. The solution could also provide businesses faster access to government cash payouts.
In collaboration with Enterprise Singapore (EnterpriseSG), a pilot was run for grants disbursed under the agency's Local Enterprise and Association Development (LEAD) Trade Fairs and Business Missions programme[1], through the Singapore Fintech Association (SFA). The pilot was initiated by SFA, which builds on DBS' experience in using Purpose-Bound Money (PBM)[2], to support grant disbursements to 27 participating fintech members during the Singapore Fintech Festival 2023.
Enhanced governance, less friction, faster payouts
Using DBS' permissioned blockchain, government agencies like EnterpriseSG and its designated intermediaries like SFA can determine and programme conditions, through DBS, governing grant disbursements. These include disbursements to approved recipients only, and upon the fulfilment of certain business conditions. Once smart contracts verify that the conditions are met, the grants are automatically disbursed as cash to beneficiaries.
This enhances governance control while reducing the need for manual processing of cash handling by intermediaries, enabling businesses to receive government cash payouts faster. In addition, the bank's permissioned blockchain enables full visibility of the entire disbursement process, which provides greater transparency and helps organisations reap operating efficiencies across reconciliation and reporting.
Han Kwee Juan, Country Head of DBS Singapore, said: "This programmable grant disbursements pilot innovates a new payment instrument that leverages the learnings from our Purpose Bound Money pilots, and marks a key milestone in the industrialisation of blockchain technology. Smart contract technology automates and streamlines grant disbursements for government agencies to enable faster, more secure disbursements and payments. We envision this payment innovation being extended to more use cases including milestone-based project payments, consumer rewards and more."
Shadab Taiyabi, President of SFA, added: "The solution is designed to streamline business grant disbursements that enables local companies to receive payouts more quickly and efficiently, providing them with additional capital to expand their key business areas. SFA will continue to support collaborations between the public and private sectors in solutions such as programmable grant disbursements as Singapore advances towards its Smart Nation objectives."
This solution builds on DBS' multi-year participation in the MAS-led digital currency project, Project Orchid[3], which explores use cases for PBM and digital Singapore dollar in Singapore. In the next phase, DBS will explore extending PBM for more use cases with EnterpriseSG and other government agencies as part of Project Orchid.
In November 2022, DBS completed Singapore's first programmable money use case for government vouchers in partnership with Open Government Products, where pilot users trialled the use of PBM for vouchers to be spent at multiple designated merchants, akin to a digital voucher.
About DBS
DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.
Recognised for its global leadership, DBS has been named "World's Best Bank" by Global Finance, "World's Best Bank" by Euromoney and "Global Bank of the Year" by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named "World's Best Digital Bank" by Euromoney and the world's "Most Innovative in Digital Banking" by The Banker. In addition, DBS has been accorded the "Safest Bank in Asia" award by Global Finance for 15 consecutive years from 2009 to 2023.
DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region's most dynamic markets.
DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting businesses for impact: enterprises with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping underserved communities with future-ready skills and helping them to build food resilience.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.
In collaboration with Enterprise Singapore (EnterpriseSG), a pilot was run for grants disbursed under the agency's Local Enterprise and Association Development (LEAD) Trade Fairs and Business Missions programme[1], through the Singapore Fintech Association (SFA). The pilot was initiated by SFA, which builds on DBS' experience in using Purpose-Bound Money (PBM)[2], to support grant disbursements to 27 participating fintech members during the Singapore Fintech Festival 2023.
Enhanced governance, less friction, faster payouts
Using DBS' permissioned blockchain, government agencies like EnterpriseSG and its designated intermediaries like SFA can determine and programme conditions, through DBS, governing grant disbursements. These include disbursements to approved recipients only, and upon the fulfilment of certain business conditions. Once smart contracts verify that the conditions are met, the grants are automatically disbursed as cash to beneficiaries.
This enhances governance control while reducing the need for manual processing of cash handling by intermediaries, enabling businesses to receive government cash payouts faster. In addition, the bank's permissioned blockchain enables full visibility of the entire disbursement process, which provides greater transparency and helps organisations reap operating efficiencies across reconciliation and reporting.
Han Kwee Juan, Country Head of DBS Singapore, said: "This programmable grant disbursements pilot innovates a new payment instrument that leverages the learnings from our Purpose Bound Money pilots, and marks a key milestone in the industrialisation of blockchain technology. Smart contract technology automates and streamlines grant disbursements for government agencies to enable faster, more secure disbursements and payments. We envision this payment innovation being extended to more use cases including milestone-based project payments, consumer rewards and more."
Shadab Taiyabi, President of SFA, added: "The solution is designed to streamline business grant disbursements that enables local companies to receive payouts more quickly and efficiently, providing them with additional capital to expand their key business areas. SFA will continue to support collaborations between the public and private sectors in solutions such as programmable grant disbursements as Singapore advances towards its Smart Nation objectives."
This solution builds on DBS' multi-year participation in the MAS-led digital currency project, Project Orchid[3], which explores use cases for PBM and digital Singapore dollar in Singapore. In the next phase, DBS will explore extending PBM for more use cases with EnterpriseSG and other government agencies as part of Project Orchid.
In November 2022, DBS completed Singapore's first programmable money use case for government vouchers in partnership with Open Government Products, where pilot users trialled the use of PBM for vouchers to be spent at multiple designated merchants, akin to a digital voucher.
[1] The LEAD Trade Fairs & Business Missions supports enterprises to access overseas markets through participation in international trade fairs and business missions led by Trade Associations and Chambers (TACs). TACs can tap the programme to help enterprises defray part of the costs incurred for these overseas missions and trade fairs.
[2] PBM is a protocol which specifies the conditions upon which funds can be disbursed when conditions are met. https://www.mas.gov.sg/publications/monographs-or-information-paper/2023/purpose-bound-money-whitepaper
[3] Project Orchid is a multi-year, multi-phase project led by MAS to develop the technology infrastructure and technical competencies necessary for a digital Singapore dollar. https://www.mas.gov.sg/schemes-and-initiatives/project-orchid
Appendix: 27 participating fintech members which received the grant under this pilot
- Advance Intelligence Pte Ltd
- Aspire FT Pte Ltd
- Credit Engine ASIA PTE. LTD.
- Cyberbeat Pte. Ltd.
- Cynopsis Solutions Pte Ltd
- DigiCal Consultancy Services Pte Ltd
- eBaoTech International Pte Ltd
- Headquarters XYZ Pte Ltd
- Holland & Marie Pte Ltd
- Bitdefender APAC Pte Ltd (previously known as Horangi Pte Ltd)
- IC SG Pte Ltd
- Jasper Vault Technology Pte Ltd
- Jewel Paymentech Pte Ltd
- Legatus Global Pte Ltd
- Max Now Pte Ltd
- MineSec Pte Ltd
- Optimai Pte Ltd
- Option Gift Pte Ltd
- Pilon Pte Ltd
- SHA2 Labs Pte Ltd
- Solvecube Pte Ltd
- UNSD Information Technology Pte Ltd
- VANTAGE POINT SECURITY PTE LTD
- Experian Singapore Pte Ltd
- Intersystems Singapore Pte Ltd
- Acego Pte Ltd
- Dobin Pte. Ltd.
[END]
About DBS
DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.
Recognised for its global leadership, DBS has been named "World's Best Bank" by Global Finance, "World's Best Bank" by Euromoney and "Global Bank of the Year" by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named "World's Best Digital Bank" by Euromoney and the world's "Most Innovative in Digital Banking" by The Banker. In addition, DBS has been accorded the "Safest Bank in Asia" award by Global Finance for 15 consecutive years from 2009 to 2023.
DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region's most dynamic markets.
DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting businesses for impact: enterprises with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping underserved communities with future-ready skills and helping them to build food resilience.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.