Business
Singapore’s UOB Targets Dominance in Southeast Asia’s $2 Trillion Trade Finance Market Amid Regional Economic Shifts
Singapore's United Overseas Bank (UOB) is aiming to take control of the $2 trillion trade finance sector in Southeast Asia. Currently, UOB commands merely 1% of the trade finance market in the region, indicating a vast opportunity for the bank to establish its supremacy.
Frederick Chin, the head of group wholesale banking and markets, has stated that the bank, a key financial provider for numerous small to medium-sized businesses and large corporations, aims to secure a larger portion of the $2 trillion trade transactions happening in the region.
"He highlighted that the focal point in the coming years will be Asean," he mentioned in a discussion in Ho Chi Minh City the previous week, drawing attention to the consortium of Southeast Asian countries. "We have already established ourselves as the leading trade bank in Asean, and my aim is to channel our resources to reign supreme in this area."
With worldwide producers implementing "China plus one" tactics to lessen the economic impact of conflicts between Washington and Beijing, Southeast Asia has become a major recipient of supply-chain disruptions. Consequently, last year, the region's leading economies drew in more foreign direct investment than China, a feat that hasn't been achieved in the past ten years.
The worldwide wholesale banking of UOB provides an extensive assortment of services such as loans, trade assistance, cash handling, and consulting services. As per the bank's yearly financial statement to its shareholders, this division generated an unprecedented revenue of S$7.1 billion (US$5.5 billion) in 2023.
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