Having genuine curiosity about customers’ businesses is essential in the relationship-driven world of small and medium-sized enterprise (SME) banking, said Sharon Tan, Head of SME Banking at DBS.

Tan, who took on the role in April, said it is important to understand the unique challenges that each business faces to create relevant solutions. “If we are able to put ourselves in (our) customers’ shoes and think about what will help them, then we will be able to go beyond being just product-driven,” she said.

She added that strong business acumen helps bankers better understand SMEs across different industries. Her personal experience also gives her perspective — her father once ran an SME in the paper file business. “I saw how he started the business, grew the business, and then eventually thought about how he should transform it,” she said.

“There are many different stages of the life cycle that a business can be at – so I’m always curious to know which phase (a client is) at, so we know how to help them,” Tan explained.

Career Path Shaped by Purpose and Impact

Tan began her career as a management associate at DBS, starting with POSB, which had a mandate of doing good. “It made me think that it’s possible to do well and do good at the same time. Wherever I went next, I wanted to be in a job where I could make an impact,” she said.

She later worked in regional cards and consumer finance at DBS, where she helped to “bank the unbanked” in Indonesia and India. She then became Chief Operating Officer for Singapore, creating community and business programs such as the Heartland Merchant package.

According to Tan, these experiences led naturally to her current role in SME banking. “SMEs form 99 per cent of our enterprises and a large workforce for Singapore. So it is very meaningful for me to help small businesses expand and overcome their everyday challenges,” she said.

Future-Proofing and Regionalizing Supply Chains

Tan observed that the trends shaping SMEs depend on their stage of growth. In general, SMEs must future-proof and transform their businesses. “Environmental, social, and governance is no longer just an option for SMEs. Business owners are telling me it’s not a choice anymore, because of consumer demands. We’re also starting to see companies become more purpose-driven,” she said.

She added that SMEs are rethinking their supply chains, with many moving away from hyper-globalization toward a regional supply chain model.

Supporting SMEs in Transformation and Growth

Because SMEs often have fewer resources than large companies, banks can play an important supporting role, Tan said. For environmental, social, and governance (ESG) efforts, larger companies may find it easier to begin decarbonization, while SMEs require more guidance. “This is how we created a program to take them through the journey, step by step,” she explained.

She also said DBS helps clients who want to expand beyond Singapore into other markets and supports SMEs in adopting new digital tools. Businesses are now exploring different online channels to promote their products.

“The interesting thing about SME owners is that they are very passionate about their business. So it is therefore important that we work with them, understand them, and try to help them. This is the part similar to retail business, where there is a lot of heart in the business,” she said.

PHOTO: DBS

This article was created with AI assistance.