Legacy financial institutions (FIs) continue to find value in adopting the technologies their FinTech peers have developed. But this week’s roundup of the latest in bank-FinTech pairings also reveals the power that tie-ups can have to co-create a new solution. Plus, Canada inches closer toward its open banking ambitions.
DBS Collaborates With Doxa On Construction B2B Payments
In Singapore, DBS is collaborating with FinTech Doxa to roll out a B2B payments technology designed specifically for the construction industry. Doxa announced on its website that it is working with the bank to debut Doxa Connex, a tool to automate key processes for construction firms that need to digitize their supplier payments. The FinTech said the solution can lower costs by 50 percent, largely the result of reduced administrative fees.
Singapore-based Tiong Seng will be the first to pilot the solution, which Doxa said will accelerate invoice processing times by more than double. Doxa’s announcement did not reveal specifics about how it will facilitate B2B payments to suppliers or which payment method or infrastructure it plans to use.
In a statement, Doxa Co-founder and Managing Director Edmund Ng said it is a “privilege” to work with DBS on the technology. “Being a fellow SME [small and medium-sized business], we can empathize and relate to the challenges of having payments delayed, especially during this period of economic uncertainty,” he said.
KPMG Taps Bill.com To Enhance B2B Payment Offerings
KPMG has chosen B2B payments and financial automation platform Bill.com to enhance its own offerings for small and medium-sized business clients. In a press release, KPMG revealed that its business unit KPMG Spark will integrate Bill.com’s B2B bill payment capabilities, expanding its existing small business accounting offering that connects SMB clients with automated technology as well as a KPMG bookkeeper.
In its announcement, KPMG pointed to Bill.com’s bill payment automation, payments flexibility and security as key features for its business clients. SMB users can facilitate same-day or next-day payments via a variety of payment methods, including ACH, cards, checks and cross-border wire transfers.
“We chose Bill.com’s platform because we wanted to provide our clients with a secure, easy-to-use, real-time and cost-effective solution for their automated bill pay needs,” said Timothy Stiles, CEO of KPMG Spark. “Bill.com’s commitment to the small business community is well-respected and aligned with KPMG’s values. We look forward to offering their services to our clients.”
Canada Sets The Stage For Open Banking
Canada is still years away from making its open banking ambitions a reality, but the nation’s government is laying the groundwork for the initiative. Financial Post reported that the government has published its blueprint for open banking following several months of delays, with an advisory committee establishing a report to allow consumers to retain greater control of their financial data and how it gets shared with third-party FinTechs.
As was the case in other markets where open banking is already enacted, including the U.K., Canada’s efforts will first focus on the framework’s impact on consumer finances.
“Consumer-driven finance, or open banking, is already part of Canadians’ lives. Many use digital services every day to manage their money, to budget for expenses and to make investments,” Finance Minister Chrystia Freeland said in a statement. “Working toward a regulated, made-in-Canada system will make sure that we continue to enjoy a strong, stable and innovative financial sector that is globally competitive, promotes consumer choice, prioritizes data privacy and contributes to economic growth.”
Despite that focus, open banking has widespread implications for small businesses and corporate finance, as more businesses demand enhanced user experiences and deeper data integrations. Open banking can also be applied to other services like loan underwriting, which would similarly impact the business community.