DBS Bank has launched the DBS Corporate Multi-Currency Account (Corporate MCA) to help businesses transact and manage up to 13 currencies in separate e-wallets all maintained in one single account.
The Corporate MCA enables businesses to send and receive cross-border payments in different currencies and manage their foreign exchange costs more efficiently as incoming currencies are stored in respective e-wallets until exchange rates are in the business’ favor.
In addition, the Corporate MCA does away with the need to maintain a minimum balance in different currency accounts. Instead, all a business has to do, is to maintain a minimum balance of SGD10,000 in the account.
According to an International Enterprise Internationalisation Survey conducted in 2016, overseas revenue for companies based in Singapore grew by 4.2 per cent year-on-year, of which 53 per cent of total revenue for Singapore-based SMEs came from overseas.
“DBS’ SME customers are constantly thinking about how they can expand their business overseas with greater cost efficiencies,” says Joyce Tee, Group Head of SME Banking, DBS Bank.
“Whether it is paying their suppliers and vendors globally or receiving payments from their customers, we hope that the DBS Corporate MCA will help to alleviate some of the administrative and cost commitments in dealing with foreign currencies.”
With more businesses making and collecting payments in different currencies, the corporate MCA will especially benefit SMEs who previously did not have access to such multi-currency accounts to manage cross-border payments and transactions.
It is also ideal for the growing number of Singapore-based companies with overseas suppliers and vendors as they can save on administration and foreign exchanges costs from DBS’ corporate internet banking platform, DBS IDEAL.
Tat Hui Foods Pte Ltd, a leading manufacturer of the popular KOKA Noodles which exports their products to over 40 countries, is one example.
James Lim, Executive Director of Tat Hui Foods said, “The DBS Corporate MCA has helped Tat Hui Foods save on foreign exchange costs when receiving funds in foreign currencies as incoming currencies are stored in separate e-wallets until exchange rates are in our favor.
“With one multi-currency account to maintain, it is easier and more efficient to send and receive money in a few different currencies. This means that we get to focus more time on tasks and initiatives that matter for our business.”
With DBS’ established presence in China, India, Indonesia, Hong Kong and Taiwan, businesses with a Corporate MCA can also enjoy a waiver of cable charges for overseas telegraphic transfers to DBS accounts in these countries, and receive or make payments in 10 minutes.