DBS HK teams with Xero for cloud accounting for SMEs

DBS HK teams with Xero for cloud accounting for SMEsA survey of 151 small businesses in Hong Kong conducted by Colmar Burton in October 2017 revealed that Hong Kong’s small business owners spend an average of 16.5 hours a month manually importing and reconciling their bank statements. Of these, 32% spend between 20 and 50 hours a month manually reconciling.

More than two thirds (69%) of surveyed small businesses cited manual bank statement reconciliation as a key challenge in managing their operations. Of these, 19% cited this as the single biggest financial challenge facing their business.

In what the bank claims to be the first-of-its-kind collaboration in Hong Kong, DBS Bank (Hong Kong) and accounting platform Xero jointly launched an API-driven solution to help Hong Kong small businesses better manage their finances, including payments and loan applications.

The partners claim the collaboration will save small business owners in Hong Kong a significant amount of time by allowing them to easily connect their DBS business bank accounts to Xero, so that their transaction data can flow securely and automatically into Xero each day.

In less than a day, business owners will get a reliable, up-to-date view of their financial position in Xero, empowering them to make more informed business and investment decisions, without the hassle and costly mistakes caused by outdated cash flow balances and human error.

The collaboration promises a completely seamless online experience that eliminates the need for SMEs to spend time doing manual data entry or importing bank transactions. SME customers using DBS IDEAL, DBS’ online business banking platform, can opt to have their bank transactions imported automatically into their nominated Xero subscription every day, with bank feeds available the following day.

Unlike other banks in the region with direct bank feed integration with Xero, which use a manual paper-based setup for bank feeds (can take up to 10 days for processing), the DBS integration has quickly become the gold standard to empower SMEs to use their data in meaningful ways.

“We have made it a priority to reimagine banking, seamlessly interweave banking into a customer’s everyday life by being part of their eco-system and provide SMEs with business management tools to help them grow their business,” DBS Group head of SME banking Joyce Tee said.

“By enabling SMEs to manage their finances in a much more efficient manner, we hope that they can better manage their business and make more informed decisions.”

First published in FinTech Innovation

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