Crowdsourcing still ‘quite tiny’: DBS CEO

SINGAPORE - The largest bank in Singapore doesn’t see fintech as a threat. Crowdsourcing, even though it is picking up, it is actually “quite tiny”, noted DBS bank’s CEO Piyush Gupta on Thursday (April 28) at the bank’s annual general meeting (AGM).

The chief added that these methods of funding require due diligence.

For example, Mr Gupta cited the P2P (peer-to-peer) lending situation in China which saw the government shutting down 2000 out of 4000 of these platforms in the last two months, resulting in losses of billions of dollars.

Mr Gupta was addressing a query from a shareholder on the floor who was concerned with the “heating up” fintech space, in particular crowdfunding which was, in the shareholder’s opinion, increasing very rapidly and tend to cater to small-and-medium enterprises (SMEs).
Fintech, often the short form word for financial technology refers to an industry composed of companies that use technology to make financial services more efficient.
The SME business is one segment that the bank continues to see opportunities in, the CEO mentioned during the AGM on Thursday.

Separately, in a scheme that targets local high-growth SMEs; the bank, together with OCBC Bank and United Overseas Bank are also in a venture debt programme (VDP) with enterprise development agency, SPRING Singapore.

In a statement issued by SPRING on Thursday, these financial institutions will catalyse about 100 venture debt loans, totalling close to S$500 million over two years. SPRING will provide 50 per cent risk-sharing with the banks for such loans.

SMEs can apply for venture debt loans of up to S$5 million each for working capital, assets, projects or mergers and acquisitions for the purpose of business expansion. The VDP was announced during Budget last year and works as an alternative source of financing.