DBS announced that it has completed its first live transaction on the Singapore Trade Data Exchange (SGTraDex) – a digital data exchange that facilitates trusted and secure sharing of data between supply chain ecosystem partners. The transaction was done by way of an electronic bunker delivery note (BDN).
The maiden transaction was completed with leading bunker player Kenoil Marine Services (Kenoil), in collaboration with mass flow meter data logger service provider Brightree. By digitalising the bunker delivery note, DBS, Kenoil and its counterparties are able to ascertain the trade data at source to validate the transaction details in a timely manner. This fosters greater trust and transparency across the trade ecosystem.
The objective is to provide bunker players faster access to working capital and enhance their cash flow management, while providing a trusted and secure environment for banks and participants operating in the ecosystem.
Sriram Muthukrishnan, Group Head of Product Management of Global Transaction Services, DBS, said, “Access to secure, trusted and real-time data will support the long-term growth of trade and trade finance. With the digitalisation of the bunker delivery note, financing and payment for the underlying
trade can be completed efficiently and on a near immediate basis.
Furthermore, the risk of fraudulent manipulation is mitigated as banks and fellow industry partners are now able to ascertain the trade data at source. This helps provide greater transparency and comfort regarding the genuineness of trade. With the successful completion of the first live transaction, we look forward to partnering SGTraDex to support more businesses to digitalise their workflows to enhance supply chain efficiency and transparency and reinforce Singapore’s position as a global trade hub.”
DBS played a crucial role in the conceptualisation of SGTraDex as the Technology Lead on the Alliance for Action on Supply Chain Digitalisation. DBS was the sole financial institution that laid the cornerstone for the use case aimed at digitalising and optimising bunker delivery.
The bank was also a key player in a second use case focused on enabling the digital-physical twinning of supply chains, leveraging digital data at source to detect trade fraud and reduce the risk of duplicate trade financing. This is where DBS’ leading role in Singapore’s Trade Finance Registry proof- of-concept contributed valuable insights in the development journey of SGTraDex, to create a solution that enables trade flows be screened more efficiently and thoroughly to enhance the security of trade financing transactions.