OCBC Bank has invested more than $10 million in developing its business in the small and medium-sized enterprises (SME) segment over the last three years - and plans to do more over the next 18 months.
Mr Tan Chor Sen, who heads the emerging business unit at OCBC, said the bank would continue to provide more innovative financial products and services.
'Three years ago, this was a segment that no one engaged. Now, we feel that SMEs know that from senior management to staff, we have and will continue to invest our time and resources in providing them with solutions that meet their needs.'
Three years ago, OCBC took the step of 'walking' with these companies, where bank client or not, senior people from the bank, including Mr Tan, arranged to spend half a day with the SMEs.
The unconventional move was to understand what the companies wanted, as well as their plans.
Mr Tan realised that most customers were apprehensive of meeting bankers. For example, having to produce a business plan before they could take a loan made them nervous.
'What they want from a bank are products and services that are simple, fast and convenient,' he said - something that OCBC has tried to do.
For example, there are loans that do not require collateral.
TradeMax is a programme for companies to finance their imports and exports, providing services such as letters of credit and shipping guarantees. Applications have a fast turnaround time of 48 hours.
Another service launched in March was OCBC BizExpress, a complimentary document collection service for customers.
They get to deposit their banking documents, including cheques, trade documents and loan applications, with a mobile van that goes around industrial buildings in places such as Kaki Bukit and Ubi daily.
It was an added feature after customers said they liked the existing cheque deposit service available at certain Shell and Caltex service stations.
Mr Tan said customers asked if they could deposit other documents.
'Bringing the bank to its customers will give them convenience and easy accessibility.
'Customers told us about their parking woes. When they come to deposit documents at the bank, they end up being fined if their time overruns. Often, it is not just the clerk but a finance manager who goes to the bank. Our new service saves them valuable time.'
Then, there is the business term loan that answers SMEs' demand for speed and flexibility. The bank offers a loan of as much as $200,000 without needing any collateral.
Neither does the loan specify the purpose of the funds. Customers can lay their hands on the funds in as short a time as five working days.
Already, OCBC has set up business banking centres in Jurong, Bedok North, Orchard, Toa Payoh, Jalan Besar and Ang Mo Kio, as well as at OCBC Centre.
And as an added edge to make SME customers feel special, the bank has taken them to 'celebrate with OCBC' lunches.
Instead of treating the SME customers to lunches at restaurants - a move that allows OCBC to entertain only a few staff members at a time - the luncheon is now hosted at the SME's office premises.
Bank staff will also mingle with the rank and file, allowing feedback to be exchanged in a relaxed setting.
'Our constant engagement allows the enterprise banking staff to understand their SME customers' changing needs and business,' said Mr Tan.
OCBC has invested over $10 million in developing products and services for SMEs over the last three years.
Among its offerings are:
TradeMax: A programme for companies to finance their imports and exports, providing services such as letters of credit and shipping guarantees.
BizExpress: A document collection service.
Business term loan: A loan of as much as $200,000 that is collateral-free.
Instant account opening service: Customers can open a corporate account immediately and are issued a chequebook on the spot.
ACTIVE ENGAGEMENT
'Three years ago, this was a segment that no one engaged. Now, we feel that SMEs know that from senior management to staff, we have and will continue to invest our time and resources in providing them with solutions that meet their needs.'
MR TAN CHOR SEN, who heads the emerging business unit at OCBC, on how the bank is continuing to develop its business in the SME segment
