Indian large corporates and middle-market companies focused on digital transformation as priority, finds DBS Survey

Mumbai, September 22, 2021: The third edition of the DBS Digital Readiness Survey has revealed that there has been continued momentum in digitalisation efforts by businesses across the Asia-Pacific (APAC) region; however, there remains room for further improvement. The global pandemic and the subsequent lockdown accelerated the digital journey for corporates and Small & Medium Enterprises in India. 
 
Previously known as the DBS Digital Treasurer Survey, the study was conducted in June 2021 and involved around 2,600 corporate treasurers, CEOs, CFOs and business owners across 13 markets in APAC - India, Australia, China, Indonesia, Japan, Hong Kong, Malaysia, Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam- as well as the US and UK.
 
The survey showed that nearly half (48%) of large corporates (companies with an annual turnover of over USD 1 billion equivalent) and middle-market companies (annual turnover of between USD 200 million and USD 1 billion equivalent) in India have a digital transformation strategy in place. The APAC region has witnessed seven in 10 (70%) large corporates and middle-market companies with a digital transformation strategy in place, with Taiwan leading the way at 95%. This is a marked increase from last year when the proportion of APAC businesses with a digital strategy was only 57%. There was also a significant jump in the proportion of businesses with clearly defined digital strategies -- to greater than three in 10 companies (35%) from 26% the year before.
 
In India, the survey reports that 62% of the large corporates and middle-market companies are in the formative stages of digitalisation.  They have so far developed their digital roadmaps and are rapidly ramping up their efforts.
 
Divyesh Dalal, Head - Global Transaction Services, DBS Bank India, said, "If there was any doubt about key benefits of digitalisation, the pandemic has only eliminated it. Embracing digital transformation is no longer a 'good to have' but critical for corporate entities to maintain a competitive edge and improve business drivers. We are witnessing a rapid pace of technological innovation, which will come with its own challenges around adoption and implementation. At DBS, we provide enabling solutions to our clients by leveraging our digital-first capabilities across flow products."
 
SMEs in India are making steady digital progress to match pace with peers in other markets
 
Small and medium-sized enterprises (SMEs) make up more than 96% of all Asian businesses[1]and are integral to the success of the region’s economy. To better understand their needs, the DBS Digital Readiness Survey was expanded this year to garner insights from more than 1,000 small and medium-sized enterprises[2] (SMEs) across six APAC markets (including India) on where they are in terms of digitalisation.
 
In terms of digital progression, SMEs in Singapore are the pacesetters with 72% having a digital transformation strategy in place, followed by Hong Kong (47%), China (44%), Taiwan (38%), India (25%) and Indonesia (20%). However, Indian SMEs have digitised 23% of their payment collection volumes, up from 18% a year ago. The figures reveal that digital channels are on the rise and suggests that SMEs are making progress in their digital journey in the face of the pandemic.
 
Sudarshan Chari, Head – Business Banking, DBS Bank India, said, “A rise in the adoption of digitised payment collection amongst SMEs in India is an encouraging indicator of the value these businesses see in digitalisation. More than half of these SMEs identified banking relationships and apps as the function they would focus on during their digital transformation journey. This reliance on the banking provider for help and guidance highlights an immense opportunity for market education and bridging the resource gap. At DBS, we will continue to innovate and introduce seamless, digital banking solutions that cater to the banking needs of this segment.”