UOB to launch digital bank in key Asean markets

UOB said the digital bank will be operated at a "steady-state" cost-to-income ratio of 35 per cent.
UOB said the digital bank will be operated at a "steady-state" cost-to-income ratio of 35 per cent.PHOTO: ST FILE

SINGAPORE - UOB on Friday (Aug 3) said it will launch a digital bank in its key Asean markets, tapping the surging base of "mobile first" and "mobile only" customers, with an aim to grow a base of three to five million customers in the next five years.

BT understands it is expected to look at the five markets of Singapore, Indonesia, Malaysia, Thailand and Vietnam.

The digital bank will be operated at a "steady-state" cost-to-income ratio of 35 per cent, it said.

In its media statement, it said it would use a "unique data-centric business model", that taps the entire customer life cycle comprehensively. UOB will rely on its in-house digital technology development, as well as its collaboration with fintech partners such as its recent joint venture with credit assessment firm Avatec.ai, and its investment and partnership with data analytics firm Personetics.

Wee Ee Cheong, UOB's chief executive officer, said: "The group's digital bank is our latest initiative to deepen engagement with our customers, especially the mobile savvy. It will also help scale up our customer franchise across South-east Asia and positions us well for the future."