DBS on Thursday introduced what it says is Singapore's first automated supplier payments solution for the construction sector, developed by local fintech Doxa.
Named Doxa Connex, the procure-to-pay solution aims to speed up payments from main contractors to their suppliers to improve cash flow management as the construction industry restarts after the extended "circuit breaker".
Main contractor Tiong Seng Group has signed up as the pioneer adopter for this payments solution.
"By automating payments from main contractor to supplier, Doxa Connex automatically tracks the entire process from a main contractor's invitation to quote all the way to procurement orders to delivery orders to last-mile payments," DBS and Tiong Seng said in a joint statement.
According to data from Doxa, Doxa Connex could lead to a reduction in administrative fees and processing costs of at least 50 per cent.
Tiong Seng can also expect to save time from the streamlined process and reduce working days required for administrative tasks, enabling it to redeploy employees to focus on higher-value work, the companies said.
Said Chew Chong Lim, managing director and global head of real estate, institutional banking at DBS: "Doxa Connex was developed with a view to improve productivity and remove inefficiencies in the sector's procurement and payment processes. These processes may look simple on paper, but in reality are often cumbersome and fraught with missing documentation and patchy administration due to paper-based invoices and delivery orders having to change hands multiple times along the way."
DBS shares closed at S$21.01 on Wednesday, up S$0.16 or 0.8 per cent, while Tiong Seng shares last traded at S$0.16 on July 28.