Singapore’s digital bank paves the way for MSMEs

Green Link Digital Bank (GLDB), now two years old, is making significant steps in the financial landscape by focusing on micro, small and medium-sized enterprises (MSMEs). The digital-only bank, owned by Greenland Group and Linklogis, launched its operations in June 2022 and became fully operational by October of the same year. Despite its relative newness, GLDB has already approved $50 million in credit facilities, offering essential services such as working capital loans, trade and supply chain financing and fixed deposits.

GLDB’s mission is to support MSMEs in Singapore and beyond, leveraging advanced technologies like AI, blockchain, cloud computing and big data. This focus on technology aims to create a benchmark in the digital banking industry and contribute to sustainable growth. The bank’s core values emphasize diligence, persistence and a commitment to every client, regardless of size, reflecting a dedication to fostering the broader financial ecosystem.

Singapore’s strong position as a global financial and trading hub with high digital penetration makes it an attractive base for GLDB. The city-state’s political stability and strategic location within ASEAN, China’s largest trading partner, present vast opportunities for digital banks to promote trade and capture transaction flows across the region.

Despite its digital nature, GLDB competes with traditional banks by offering niche supply chain financing products and services that cater specifically to the unique needs of MSMEs. These services include leveraging intellectual property as collateral and dynamically pricing loans based on a firm’s risk level. Such innovations enable businesses without extensive credit histories or collateral to access necessary funding.

GLDB also plans to facilitate trade within the Singapore-China corridor, benefiting from Greenland Group’s extensive supply chain platform, which connects global buyers and suppliers. This platform streamlines trade and reduces transactional costs, making business operations more efficient.

The bank’s current priority is to deepen its roots in Singapore, expanding its workforce by 50% to 130 employees, with a focus on risk management, compliance and business development. This local growth aligns with GLDB’s broader vision of establishing itself as a key player in the regional financial landscape.

Singapore offers a fertile ground for SMEs, providing a supportive environment bolstered by advanced digital infrastructure and strategic trade links. GLDB’s entry into this market underscores the city’s potential as a launchpad for businesses aiming to thrive in the region. GLDB is set to play a crucial role in supporting the growth and sustainability of MSMEs in Singapore and beyond by harnessing cutting-edge technology and innovative financial solutions.