In a significant development for global trade-finance flows, DBS Group of Singapore and Banque Saudi Fransi (BSF) of Saudi Arabia have entered a strategic partnership designed to enhance trade settlement, financing and payment flow efficiency across Asia and the Gulf Cooperation Council (GCC) region.

Announced at the Sibos 2025 conference in Frankfurt, the agreement seeks to capitalise on rapidly growing commercial links between Southeast Asia and the GCC. According to DBS's statement, trade between Southeast Asia and the GCC already reached approximately US $130.7 billion in 2023 and is forecast to increase by a further US $50 billion by 2027. The partnership will also explore using DBS's "GlobeSend" platform for same-day cross-border payments, with BSF considering its adoption across its global payout network of over 100 markets.

The move reflects several trends shaping trade finance today. First, banks are shifting beyond traditional documentary credits and receivables financing to integrate faster settlement, regional currency flows, and digital-native payment platforms. The Asia-GCC corridor is particularly relevant given the increasing economic convergence between the two regions and the desire to reduce reliance on correspondent bank chains.

Second, the announcement underscores that payment and settlement speed are now critical competitive advantages. For exporters and importers, faster access to liquidity, lower payment processing friction and real-time visibility are becoming as important as the underlying credit facility or guarantee.

Third, the partnership shows how regional banks are innovating not just in technology but in risk sharing and market access. By aligning Asia-based and Gulf-based institutions, the pact may unlock trade flows into markets where financing costs or local currency restrictions have previously hindered smaller firms.

For exporters in Southeast Asia looking to access Gulf-market demand, or Gulf-based buyers sourcing Asian products, this partnership offers improved access to structured financing, faster settlement and potentially reduced foreign exchange and correspondent bank cost. Smaller players, often excluded from large bank trade finance programmes, may especially benefit if the banks extend this model beyond major corporates.

Banks and financial services providers will likely use this as a blueprint for other corridors. The same platform and approach could be replicated between Africa and Asia, Latin America and the Middle East, or other underserved trade finance links.

Nevertheless, challenges remain. For the full benefits to be realised, both banks must ensure their systems, risk frameworks and compliance regimes are interoperable, especially given differences in regulatory regimes, local currency clearing, sanctions exposure and document flow practices. Execution risk is real: the announcement is ambitious, yet effective rollout will require onboarding of clients, system integration and tariff/FX‐risk management.

In the coming months the industry will likely monitor how quickly the banks roll out the GlobeSend-enabled payments and settlement solution in the new corridor, which kinds of clients (including SMEs) gain access to the new facility, and whether this partnership translates into measurable increases in financed trade volume, reduced settlement times and lower cost of trade credit.

Should the model prove successful, it may accelerate a broader re-conceptualisation of trade-finance infrastructure, one in which settlement platforms, digital networks and regional bank alliances form the backbone of global trade flows, rather than traditional correspondent banking alone.

For now, the DBS-BSF pact signals another milestone in the ongoing evolution of trade finance, with implications for clients, banks and trade corridors alike.

Further information: https://www.reuters.com/world/asia-pacific/singapores-dbs-banque-saudi-fransi-join-forces-boost-payment-flows-across-asia-2025-10-16/

This article represents the views of the author and not necessarily those of the ICC.