Banking with heart: Tackling societal issues head on

THE world continues to face a variety of pressing global challenges, from geopolitical tensions to rising inflation, which is imposing a cost-of-living challenge on many around the world. There is an urgent need to look beyond economic growth to prioritise building a sustainable future - and while such conversations have generally focused on the environment, there's a need to also address long-persisting societal issues.

Businesses, including financial institutions like DBS, can play a vital role in addressing some of these concerns. Indeed, DBS has long dedicated itself to uplifting lives and livelihoods in the community; going beyond its role as a bank to enact broader social and environmental impact. This commitment is deeply integrated into DBS's strategic priorities, and is encapsulated in one of the bank's three sustainability pillars: Impact beyond banking.

Helping customers navigate uncertainty

With high inflation and rising interest rates emerging last year as yet another challenge for consumers and businesses, the bank came up with a suite of solutions to help tide its customers through. Over the course of the year, it introduced various measures such as the enhanced DBS Multiplier and POSB Save as You Earn saving schemes that paid out higher interest, as well as updated credit card and DBS PayLah! reward programs.

More recently, the bank announced its 'DBS 5 Million Hawker Meals' initiative which will subsidise five million hawker meals for 12 months till next January, as a gesture of support for the community as inflationary pressures continue to drive up food prices. This also aims to benefit hawkers, which make up an integral part of Singapore's culture.

"As a key member of the community, we are committed to standing by our customers in both good and bad. We hope this small gesture can provide some relief and encouragement as we ride out these tough times together," says Jeremy Soo, Head of Consumer Banking Group (Singapore), DBS Bank.

This is not the first time the bank has stepped up to stand by its customers in times of uncertainty, tapping on its banking solutions as a means through which to effect positive change on the community.

At the height of the pandemic in 2020, for instance, DBS rolled out liquidity relief and other support measures to help businesses and retail customers who were hard-hit. Customers benefited from initiatives such as deferred mortgage repayment, whilst social enterprises and small-and-medium enterprises (SMEs) received cash flow support. The bank also set up the SGD 10.5 million DBS Stronger Together Fund, which provided over 4.5 million meals, care packs and medical supplies to impacted communities across the region.

As the pandemic continued to disrupt livelihoods, DBS further committed an additional S$100 million in 2022 to support the DBS Foundation's work, as well as the bank's other philanthropic and crisis relief activities.

Igniting change in businesses and communities

DBS Foundation is dedicated to uplifting lives and livelihoods in Asia, and does so by igniting change in businesses for impact and communities. Since launching in 2014, the foundation has supported more than 800 social enterprises and awarded over SGD 13 million in funding to some 100 of them through its annual DBS Foundation Business for Impact Grant Award.

These enterprises are also given holistic support with which to grow and scale, including access to preferential banking packages, capacity-building, mentorship, and networking opportunities.

Beyond social enterprises, more SMEs are expressing interest in transitioning towards more sustainable models and becoming a force for good in society. To encourage them to take that first step and put this into action, DBS Foundation has since expanded its scope to also provide support for this sector.

"Businesses for impact are laser-focused on achieving a dual bottom-line of both profit and impact, a mission that naturally requires them to go beyond what's available in the market and develop new, innovative solutions. With their rigour, capability and vision, these businesses can potentially go on to play a significant role in addressing key societal gaps from a systemic level," says Claire Wong, Head of the Business for Impact Chapter at DBS Foundation.

Taking for example the 23 awardees of last year's instalment of the Grant Award - with DBS Foundation's support, their work is expected to collectively benefit more than two million lives and livelihoods in the region and reduce over 100,000 tonnes of food waste in two years.

For many of these businesses, patient capital is key in enabling them to thrive - yet, this isn't commonly available via traditional financing options, which often prioritise short-term profitability metrics. This results in a funding gap, which then hinders the social enterprises from being able to achieve their full potential. This vicious cycle was what drove DBS Foundation to explore new ways to galvanise capital towards supporting their growth and at the same time, foster an ecosystem of like-minded investors.

This led to the foundation partnering Singapore-based investment firm Heritas Capital to launch the Asia Impact First Fund (AIFF), which aims to address the funding gap and provide high-potential social enterprises in the region with the patient capital they need to scale. Guided by an 'impact-first' approach, the fund successfully raised over US$20 million at first close, led by anchor investor DBS with a US$10 million commitment, as well as like-minded family offices, foundations, corporates, and high-net-worth individuals.

"There's long-term value to be gained in cultivating a strong ecosystem to support the growth of these purposeful businesses. Launching the AIFF is just the start. It is our hope to gradually and eventually bring together more like-minded partners - be they investors, mentors, enablers or the like - who share our desire to empower these meaningful businesses and help them to thrive, scale, and go on to create greater positive impact," says Wong.

The DBS Foundation also expanded its mandate last year with the formation of its Community Impact chapter, which aims to empower underserved segments in the community to face the future with confidence.

This includes equipping them with key digital and financial literacy skills with which to stay ahead of a fast-changing landscape. To this end, the foundation partnered the Infocomm Media Development Authority (IMDA) on a joint initiative to foster a more digitally inclusive society, which includes running some 800 digital literacy workshops over two years and contributing to the national Digital for Life Fund, which provides grants for digital inclusion projects. The partnership aims to benefit some 100,000 Singaporeans and residents by 2024.

Its other focus area is on enabling communities to be more food secure and resilient. Last year, it partnered the National Environment Agency (NEA) to launch the Hungry for Change Challenge, which invited local youths to develop innovative solutions to address Singapore's food waste challenge. The five winning teams have since embarked on six-month pilot programmes for their innovations, supported by DBS Foundation's grant funding.

"The pace at which the world is evolving will only increase, and it is critical that we take urgent action to support those who are at risk of being displaced or left behind. As a bank that's anchored by a strong sense of purpose, we're committed to creating impact beyond banking - be it through our own initiatives, driving more private-public collaborations, or bringing more of our stakeholders along on this journey - and sparking collective action with which to build a better future for all," says Monica Datta, Head of the Community Impact Chapter at DBS Foundation.

Encouraging eco-conscious lifestyles

In the spirit of driving collective action, the bank launched LiveBetter on the DBS digibank app in 2021 - a digital platform for sustainability where users can easily monitor and track their carbon footprint, access tips on eco-friendly living, donate to sustainable causes, and invest in sustainability-themed funds.

This stemmed from the 2021 DBS Consumer Sustainability Survey, which found that customers were generally aware about the environmental impact of their lifestyles, but were inclined to act on this only if it was convenient to do so. LiveBetter was thus designed to demonstrate how easily one could make an impact, and thereby aid the transition towards more conscious living. Over one million customers engaged with LiveBetter within a year of its launch, an indication of the public's growing interest in sustainability.

DBS Bank recently leveraged the LiveBetter platform to enable customers to assist those affected by the Turkey-Syria earthquake. There was a massive outpouring of support - SGD 550,000 was donated within just three days - and the fundraiser eventually gathered some SGD 1.2 million in customer donations, highlighting the platform's effectiveness in bringing people together to address sustainable and charitable causes. The success of LiveBetter underscores DBS Bank's commitment to sustainability, and its belief that everyone can make a positive impact through their daily choices.

"Even as we continue to drive conversations on sustainability issues, we need to more importantly ensure that everyone is equipped with the tools to translate awareness into action. Through innovations like LiveBetter, we seek to guide and empower our customers - many of whom may be unsure how best to start, or may feel that what they can do as individuals is limited - to learn more, understand, and take action. No matter how small, every action makes a difference and is an incremental step towards creating collective and transformative impact," says Soo.

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