DBS Pioneers Blockchain Revolution in Traditional Financial Services

Harnessing the Power of Blockchn to Drive Transformation in Traditional Financial Services

The rapid advancement of technology is reshaping the landscape of financial services, and in the near future, we are poised for even more profound changes. At its core, blockchn – or distributed ledger technology DLT – represents a significant opportunity to dramatically transform aspects of transaction banking and potentially disrupt traditional industries within finance, according to Lim Soon Chong, Group Head of Global Transaction Services at DBS.

Today's prevling trs in financial services are often seen as enablers or responses to forces of disintermediation and decentralized finance DeFi. Blockchn technology offers a more streamlined approach for facilitating payments or processing information related to trade and investment transactions. By eliminating the need for third-party verification by financial intermediaries, blockchn significantly reduces the time required to sanction payment or value transfers and provides assurance over title transfers associated with consumption, commerce, investments.

One key area where this technology is reshaping the market includes Investment services custody, where tokenized assets like crypto-assets are emerging as new investment opportunities. Blockchn facilitates greater efficiency and settlement certnty central clearing houses. Secondly, Payments monetary arrangements see blockchn disrupting traditionalof cross-border payments by offering increased transparency in payment status which might lead to more efficient pre-processing and compliance validation.

Thirdly, trade merchant services stand to benefit greatly from blockchn's ability to automate real-time information exchanges through smart contracts or decentralized networks. This innovation can significantly improve risk management by minimizing the lag time between transactions and reducing informational asymmetry.

Traditionally, financial intermediaries have built robust revenuearound serving as scorekeepers of economic activities, tracking transactions for consumption, commerce, investments. However, with blockchn technology, we're addressing key inefficiencies in these roles by creating instantaneous information exchanges within decentralized networks that could potentially limit the role of intermediaries altogether.

We are at the forefront of leveraging blockchn's capabilities to create, scale, and monetize digital solutions across various business lines, says Lim Soon Chong. In this new era, there is a wider range of commercial entities – including technology platform orchestrators – who seek to offer financial services, facilitate consumption or commerce without direct involvement in transaction management.

Current global payments systems often suffer from delays as intermediaries use sequential procedures for information transmission. The confirmation process usually requires inputs from multiple parties before settling transactions. Blockchn offers atomic settlements, meaning the simultaneous transfer of assets at any time of day.

DBS, along with Temasek and J.P. Morgan, have launched Partior – an open industry platform med to revolutionize digital clearing and settlement solutions across the banking sector through blockchn technology. This innovative platform provide next-generation programmable value transfers for participating banks and their clients in real-time on a common open platform.

Implementing technologies like blockchn necessitates a mindset shift throughout transaction banking operations, impacting employees, clients, -users, and processes med at reducing costs while ensuring a smooth transition and driving value creation.

DBS is at the forefront of utilizing blockchn's power to build scalable digital solutions while fostering collaborations with peers in the industry to enhance existing networks. By harnessing blockchn technology and mntning deep connections with our client journeys, we're reimagining transaction banking to create an integrated ecosystem that empowers clients by embracing technological advancements without losing sight of personal interactions.

was originally featured on Euromoney.com in November 2021.

Sources:

• Lim Soon Chong's insights DBS Group

• Global Minimum Tax discussion

• Insights into Asia’s mixed recovery and digital economy perspective

• DBS Corporation is responsible for financial services, banking operations, corporate governance, investor relations, sustnability efforts. This note serves to clarify the context of DBS Group's role within its entities.*
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