Saturday, 23 January 2021

UOB Malaysia and Signify Malaysia win Best Financial Supply Chain Management in Malaysia Award for enabling faster collection of receivables through an anchor-driven approach

By The Asian Banker

  • Signify saw growth prospects in financing distributors in Malaysia  
  • UOBM implemented an integrated financial supply chain management solution covering Signify’s ecosystem
  • The bank made significant business impact for Signify and its group of distributors 

22 October 2020, Singapore – United Overseas Bank Malaysia and Signify Malaysia received the award forBest Financial Supply Chain Management in Malaysiaat the Transaction Finance and Bankers’ Choice Awards Virtual Ceremony 2020 presented by The Asian Banker.

Signify saw growth prospects in financing distributors in Malaysia  

Signify Malaysia required a framework that will support its growth without incurring payment risks from distributors. Signify faced growth bottlenecks in Malaysia as its distributors, mostly small and medium enterprise (SMEs), lacked access to financing their working capital at a favourable rate. 

Borrowers rely on traditional commercial loans that offer a higher interest rate. Signify Malaysia also sought for an improvement in its days sales outstanding (DSO) position to enable faster collection for receivables and achieve superior cash flows. Signify wanted to address the funding gap between distributors’ working capital cycle and its credit policy. 

UOBM implemented an integrated financial supply chain management solution covering Signify’s ecosystem 

UOBM understands the requirements of Signify and its distributors and came up with an integrated Financial Supply Chain Management (FSCM) solution. The bank offered a distributor financing programme with Signify being the anchor and the distributors as spokes.  The bank addressed the inefficiencies around cash management and improved Signify’s overall financial ecosystem, 

UOBM provided distributors’ access to BIBPlus, its proprietary internet banking platform for distributors, to help make payments via online banking without having to rely on cheque and/or over-the-counter payments. UOBM also provided UOB Express Service for faster collection of cheques from sales proceeds by contractors to be delivered to the bank for depositing directly into their UOBM account. 

The bank made significant business impact for Signify and its group of distributors

UOBM’s programme approach in delivering the solution ensured swift credit assessment, credit approval and onboarding of distributors that enabled working capital facilities. The onboarding process was further improved with Signify’s management support and recommendation for qualified distributors based on their stringent selection process. Access to additional working capital for distributors resulted in additional sale and increased revenue for Signify. With lower DSO, Signify’s liquidity was enhanced and working capital requirement reduced, while risk of non-payment from distributors was mitigated. 

For video of Transaction Finance Dialogue and Transaction Finance and Bankers’ Choice Awards Virtual Ceremony, please click https://bit.ly/31wgvuu

About The Bankers’ Choice Awards

The Bankers’ Choice Awards 2020, refereed by prominent global bankers, IT consultants and academics, is the most prestigious of its kind in Asia Pacific which recognise corporations that have strong financials and demonstrate the ability to use the financial supply chain to add value to their partners in the upstream and downstream activities of their businesses. Recipients of these awards are honoured in a gala event to recognise their efforts in bringing superior products and services to customers. A stringent and comprehensive evaluation process determines the awardees. For specific details relating to description of the awards, evaluation criteria and process, kindly visit http://www.asianbankerawards.com/bankers-choice/index.php

About The Asian Banker

The Asian Banker is the region’s most authoritative provider of strategic business intelligence to the financial services community. The company is headquartered in Singapore, with offices in Manila, Malaysia, Hong Kong, Beijing, and Dubai, as well as representatives in London, New York, and San Francisco. It has a business model that revolves around three core business lines: publications, research services, and forums.

For more information please contact:

Sue Kim 

The Asian Banker

Phone: +971 55 8587 992

Email: skim@theasianbanker.com 



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