CASE STUDY DBS HK introduces fully digital card loans for instant cash

Users and even non-current customers just need to scan their HKID to get both cash and a digital card in a single application.

Hong Kong citizens strapped for cash but unwilling to undertake the lengthy loan process or turned off by highinterest rates offered by non-bank lenders now have a new path to get their much-needed money. DBS Hong Kong has recently unveiled its first fully digitalised Card Loans experience, offering application, approval, and disbursement in as fast as just minutes.

“We found that many customers who had immediate financial needs took a long time to prepare supporting documents to apply for a loan,” Emily Ip, Executive Director, Head of Cards & Unsecured Lending, Consumer Banking Group & Wealth Management, DBS Bank (Hong Kong) Limited told Hong Kong Business.

With the new digital card loan application journey, even noncurrent customers of DBS could walk away with both cash and a credit card. They only need to present two things: the DBS Card+ app, and their HKID.

Customers need only to scan their HKID on the app, and immediately after signing up, they just may be touting a new digital credit card and an approved loan.

“The card application is submitted via customers’ smartphone which we ensure the DBS Card+ app runs on a secure device, moreover, all personal particulars and HKID images are encrypted to ensure data security,” Emily said.

Most importantly, thanks to the use of HKID, customers no longer need to submit any other additional documents before getting their credit card lines approved, although there are some cases when the bank may request additional documents such as address and income proof, depending on the individual.

DBS Hong Kong shared that the solution has led to a 10% increase in its card loan sales since launching in August 2022.

DBS’ revamped digital ecosystem

The instant credit card and loan approval services were just some of the improvements that DBS Hong Kong has introduced to its Card+ app over the past year. In light of the rise of buy now pay later services in the city, DBS also rolled out improvements to its Flexi Shopping options.

Chief amongst this is an expanded repayment tenor period, wherein customers can choose to pay back their purchases from a period of between 3 months to up to 60 months. Prior to the revamp, DBS conducted research in order to obtain the necessary data and insights to support the update.

“More than 50% YoY sales incremental has since been achieved since the relaunch, making DBS’ Flexi Shopping services one of the best in the field,” Emily shared.

Customers can also regulate their shopping through the “limit retail spending” function, which allows them to set a monthly limit to retail spending on their principal and supplementary cards. This is instantly effective and will not impact their credit limit, according to DBS.

“Credit cards are undoubtedly a blessing to many of us because of their convenience. However, because of how convenient it is to pay with credit cards, it has become easier for people to overspend or be scammed whilst shopping online. All these caused worry and stress amongst our customers, and we strive to offer them the same convenience, but with better control and protection over their spending,” Emily said, regarding the limit retail spending option. They are also given the freedom to turn on and off specific transaction types, such as online spending, local spending or overseas spending, for safety reasons.

“Once disabled, that spending type will be declined immediately. It is instantly effective and valid until change is requested from the customer, and DBS Card+ App will send out push notifications if a disabled transaction type has been attempted to maximise security,” Emily explained.