US tariffs provide opportunities for Greenlink Digital Bank: chairman
GLDB chairman Geng Jing believes that the tariffs could spur deeper cooperation and trade between South-east Asia countries, as well as China. 'Tariffs will likely not have a short-term impact but a medium- to long-term one,' he told The Business Times.
The bank aims to leverage the recently signed Further Upgrade Protocol to the China-Singapore Free Trade Agreement. Singapore is a bridge between China and the rest of South-east Asia, and this is a chance for GLDB to reach out to the rest of the region via the Republic.
Beyond just South-east Asia, GLDB has also courted customers in India.
GLDB's deposits currently stand at about S$806 million, from customers beyond just Singapore, but also from markets including Hong Kong, Australia and New Zealand.
The bank's loan book has now hit about S$495 million, with loans not just to Singapore companies, but also to those in China, Australia, India, Canada and US. This is due to its supply chain financing business, which offers financing for suppliers to be paid before their buyers pay them after the goods are delivered.
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GLDB currently serves about 70 per cent of Singapore's small and medium-sized enterprises (SMEs). These SMEs are feeling the short-term impact from the US tariffs, with customers in the US ordering less, noted Geng. 'The worst we've heard is that the goods are already on the way and tariffs were raised, and the goods do not have a customer anymore,' he added.
So far, GLDB's supply chain financing business, where the bank serves as co-buyer to facilitate cashflows, has no American exposure. These customers are mostly in Singapore, Malaysia and Indonesia. Excluding the SME customers who export electronics to the US, by and large most of GLDB's customers are largely unaffected by the US tariffs.
The bank will continue to strengthen its supply chain financing ecosystem to serve SMEs.
Looking ahead, GLDB is still on track to break even in FY2025, having swung into the black in the fourth quarter of 2024, said Geng. Its latest FY2024 results saw revenue surge to S$47.8 million from S$8.7 million in FY2023, and losses narrowing to S$5.1 million in FY2024 from S$29.7 million in FY2023.
The bank is targeting a public listing on the Singapore Exchange by 2027 or 2028, making 2025 a pivotal year to break even before initial public offering preparations begin.
Besides breaking even, GLDB is also looking for strategic investors who can add value. There are already ongoing discussions with potential investors, with GLDB aiming to choose between three and five strategic investors in the next 12 months.
The bank is also looking to grow its blockchain solution for supply chain financing. In 2024, it built a digital trading token that can reduce time and cost. This could also ensure there is no 'double dipping' by securing financing with assets that have already been collateralised.
With the solution, the token will show who the buyer is and who will make the final payment, and enhance the wider banking system and safety. GLDB showed the solution to the Monetary Authority of Singapore last year as part of its Digital Payment Token (DPT) licence application.
'We hope to get the DPT licence to quickly grab the opportunity to grow this solution this year,' said Geng.
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