How DBS HK helped Bloom co-create Asia’s first instant cashback solution for its loyalty programme
Insight into an API use case for Hong Kong’s Faster Payment System (FPS)
Did you know that DBS Bank offers more than just banking services? Via our API suite, our corporate clients can access a variety of technology solutions, allowing them to create joyful experiences for their own customers. DBS clients can leverage upon a library of hundreds of plug-and-play functions to automate processes of their choosing — including payments, in-bound collections, and account reconciliation. Our DBS team then works with clients to co-create, test and implement a tailor-made solution that meets their business needs.
For our DBS Hong Kong franchise, one such example is the Faster Payment System (FPS) API solution co-created with our client Bloom — a Hong Kong tech startup that provides cash rebate offers on purchases at local retailers.
To provide some further context, FPS is a payment infrastructure launched by the Hong Kong Monetary Authority in 2018 to enable 24x7 instant payments for consumers and merchants across Hong Kong. Through API connectivity with DBS, Bloom now enables its customers to withdraw cash instantly via the platform into their default FPS account.
In this blog post, I would like to share more about the journey of co-creating this innovative solution to drive our client’s business growth.
Background on APIs and FPS
An API defines how two systems communicate with each other. Through the use of APIs, DBS corporate clients can access DBS banking and transaction information and enjoy a higher quality digital experience. This has been especially important during the pandemic as businesses have digitised daily operations, alleviating the reliance on paper statements and find a suitable alternative to coming down to one of our branches.
Since launching in 2018, FPS has become widely adopted in Hong Kong — overtaking Autopay and cheques in popularity. By providing an email address or mobile number that’s linked to the user and verified by HKMA, members of the public can instantly make payments or transfer money via their mobile or internet banking platform in HKD or RMB.
Leveraging the FPS payment infrastructure, DBS created an API solution for Bloom that would enable Bloom to provide their customers with an instant redemption experience. Through our industrial strength API capabilities and deep technology bench, the DBS team were able to successfully design, implement and launch the solution in just one month.
A Blooming Collaboration
In 2021, Bloom reached out to DBS to explore using DBS’ API suite. The Bloom team was already leveraging a credit card payment network to enable credit card holders to earn additional cash on top of the bank issuer’s offers; however, Bloom were keen to enhance their offering by providing a function that enabled customers to withdraw their earned cash rebates across multiple credit cards into one bank account in an easy and straight-through manner.
Rolling out this solution involved a collaboration between the client and our DBS’ teams — including Global Transaction Services (GTS), Institutional Banking Group (IBG), and Technology & Operations (T&O). Through cross-unit collaboration and leveraging the bank’s digital infrastructure, successful implementation was achieved in just one month. Here’s how we did it.
Origination: Our DBS relationship management and sales teams workshopped how to connect DBS’ API with Bloom’s customers. We then allocated resources for the enhancement and coordinated with Bloom.
Technical Specifications: Our implementation and digital enablement teams briefed Bloom on the requirements and business flow — including connecting our API with Bloom’s app, connecting internet ports, granting IP whitelisting and setting up website certificate exchange. This close collaboration helped to facilitate a sound design for the system logic.
Testing: The DBS teams conducted user acceptances tests (UAT) to simulate the instant cashback flow with our API to review the end-to-end procedure. Bloom provided the DBS team with different customer use cases for testing such as checking the FPS proxy before the money was disbursed and whether the Bloom member was a genuine customer. This helped to ensure the desired functionality of the solution was achieved for the client. What’s more, by leveraging our digital capabilities, we were able to automate the UAT process — providing and instant response to the success of the APIs.
Deployment: Once all parties were satisfied with the testing results, the solution was ready for deployment. The implementation team arranged for a ‘green zone’ to deploy the solution in Bloom’s live environment. To do this, the team prepared a cutover plan with a small value testing case and ensured the production support team was on standby. The DBS implementation folks then executed the cutover and Bloom invited the public to participate in the solution pilot.
Figure 1: Process Flow of how customers receive their rebates
The User Journey: What’s more, through API connectivity, Bloom’s users can enjoy this FPS-enabled enhancement without having to leave Bloom’s platform. This was an essential requirement of providing a convenient and secure user experience.
Figure 2: The solution was delivered entirely on Bloom’s mobile app, with no disruption to the user journey (source: Bloom)
1. Users download the Bloom app, sign up for an account and link a credit card from a Hong Kong issuer
2. As users spend via their linked credit card at the corresponding merchants, cash rebates are earned automatically and accumulated within Bloom’s app.
3. To withdraw their earned cash, users can link their default FPS bank account to the app by using an FPS proxy verified via email or Hong Kong mobile phone number
4. DBS sends an email notification to the customer confirming the instantaneous cash transfer into the customer’s default FPS bank account.
Here’s what one of Bloom’s founding members, Justin Chan, shared about the DBS enhancement. “Customers enjoy Bloom’s offering as it offers an additional reward on top of traditional credit card offerings, as well as the merchant’s own discounts. Through our partnership with DBS, we can now provide a value-added service to our customers so they can enjoy instant cash withdrawal via FPS,” said Justin.
“With Bloom now embracing the advent of Web 3.0 by offering virtual assets such as cryptocurrency and NFTs as rewards, we also look forward to finding new opportunities to strengthen our partnership with DBS in this exciting new space.”
A beauty of APIs is their reusability. With hundreds of APIs in DBS’ repository, there area many potential use cases on which DBS and Bloom can further collaborate. What’s more success of this first-in-Asia FPS API solution can now be replicated for DBS’ corporate clients in the retail industry who would like to roll out their own loyalty programmes. To learn more about our DBS API value proposition, you can check out our website.
Celia Chau is part of DBS HK’s Global Transaction Services team — providing corporate clients with cash management solutions that help to transform their businesses. With over 17 years of experience in the banking industry, Celia has a wide range of expertise across greater China and Europe.
Bloom is a rewards platform that offers cash rebates and cryptocurrencies for all Visa cards in Hong Kong. Bloom partners with over 70 of Hong Kong’s most popular merchants to provide customers with additional offers.
