| Ref No: 18/2005
DBS partners BII in strategic alliance for cash management
JAKARTA, May 31 2005 - PT. Bank DBS Indonesia (DBSI) and PT. Bank International Indonesia (BII) today entered into a strategic alliance that will allow DBSI's corporate customers to access BII's nationwide branch network for cash management services.
An agreement signed in Jakarta will open up all 260 branches in 60 cities in Indonesia for DBSI customers to deposit their cash and cheques. This is part of DBS' comprehensive suite of cash management services that include an innovative e-banking delivery channel, and products like accounts payables, receivables and liquidity management.
The latest arrangement between the two banks is part of ongoing efforts by BII and the DBS Group to collaborate in areas of mutual benefit to their customers. In 2004 DBS and BII announced that their customers could carry out transactions at one another's ATMs in Indonesia and Singapore at specially reduced rates.
Rajan Raju, Managing Director, Head of South and South East Asia for DBS Bank, said: "The latest strategic alliance with BII highlights our commitment to work with a bank that has seen the most improved management and service quality among banks in Indonesia. In particular, the BII's transaction banking department has impressed us with its dedication and professionalism."
"This agreement will assist DBS in making our own cash management services more competitive and efficient. I look forward to further collaboration with BII as we expand our operations in Indonesia."
Henry Ho, BII's President Director said : "Our alliance with PT. Bank DBS Indonesia allows us enhance our cash management product capabilities, and increase our non-funds transactional fee income, our leading electronic channel banking solutions and our ongoing commitment to the best international banking standards"
"DBS is establishing a strategic alliance with us as we have the strength of a strong branch network throughout Indonesia and the strength of high service standards, "added Mr Ho. "BII will receive funds and conduct payment transactions in locations with no DBSI branch presence. In this case, on behalf of DBSI, BII will act as the fund receiving bank in the interest of DBS corporate customers and as the paying bank to conduct payments to third parties."
Cash management services is a fast growing business that provides a stable source of annuity income for DBS. Through innovative technology and products, the Bank is able to help medium and large corporations manage their cash flows, consolidate their funds for better control and channel their surplus liquidity to higher-yielding investments.
Lum Yin Fong, Managing Director and Head of DBS' Global Transaction Services, said : "We are expanding our cash management capabilities in the region and are pleased that this agreement with BII has enabled us to overcome the limitation of branch network in Indonesia.
"The agreement will initially allow our corporate customers to have their cash and cheques deposited into the various BII branches. It is a huge convenience factor for our customers as they have business associates, customers, suppliers and vendors who are located all over Indonesia and who can now bank through BII and have their funds swept back to their account with DBSI. The turnaround time will be quicker and we will be able to manage our customers' cashflows in a highly efficient manner."
Ms Lum added that the partnership with BII will be extended to payroll services and cash payments at a later stage. Her team is also working on similar tie-ups with local partners in India and China.
About DBS Group
Headquartered in Singapore, DBS is one of the largest financial services groups in Asia. The largest bank in Singapore and the fifth largest banking group in Hong Kong as measured by assets, DBS has leading positions in consumer banking, treasury and markets, asset management, securities brokerage, equity and debt fund raising. Beyond the anchor markets of Singapore and Hong Kong, DBS serves corporate, institutional and retail customers through its operations in Thailand, Malaysia, Indonesia, India and The Philippines. In China, the bank has branches and representative offices in Shanghai, Beijing, Guangzhou, Shenzhen, Fuzhou, Tianjin and Dongguan. The Bank's credit ratings are one of the highest among banks competing in the Asia-Pacific region, and the highest among banks in Singapore. More information about DBS Group Holdings and DBS Bank can be obtained from our website www.dbs.com.
About PT. Bank DBS Indonesia
PT Bank DBS Indonesia, a 99%-owned subsidiary of DBS Bank, operates in Jakarta, Surabaya, Medan and Semarang, providing a full range of banking services including corporate lending, trade financing, syndicated finance, foreign exchange and consumer credit. It has a significant presence in the large corporate and medium-sized enterprise market.
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