Singaporean lender UOB entered into a joint venture with a Chinese financial technology firm. The move is a bid to push into other Southeast Asian markets such as Indonesia.
United Overseas Bank, or UOB, inked an agreement with Beijing-based fintech Pintec to establish a joint venture. UOB will take a 60 percent stake in the venture, the bank said in a statement on Monday.
The new entity, to be known as Avatec, will launch its digital solution in Indonesia, followed by other Southeast Asian markets within the next two years. Avatec will utilize data technology for credit assessment, scoring and selection.
The commercial applications will support micro, consumer and small and medium enterprise lending activities. Avatec has issued and paid-up capital of up to S$10 million ($7.6 million), and is accounted as a subsidiary company of UOB.
