Singapore-based OCBC is seeking to accelerate growth in Greater China with fresh commitments of over $190 million in investments in the region.
OCBC has committed HK$1.5 billion ($192 million) in investments from 2023 to 2026 to its Greater China business, according to an announcement by group CEO Helen Wong.
«We dropped an old name from the bank we acquired some 10 years ago,» Wong said during a media briefing attended by finews.asia, referring to a rebranding in 2023 following integration with Hong Kong-based lender Wing Hang. «We are building a one group strategy to […] capture the growth opportunity.»
Technology Talent
The fresh funds will be allocated towards modernizing the bank’s technology platforms, channels, products and facilities.
In terms of technology, OCBC will expand its Greater China engineering hub by hiring 300 tech staff – a 75 percent increase – over the next three years to support the group’s digital transformation and overall growth ambitions.
Business Targets
OCBC’s Greater China ambitions are part of broader plans to achieve S$3 billion ($2.2 billion) in incremental revenue from 2023 to 2025. Thus far, it has achieved S$500 million in incremental revenue in 2023.
OCBC’s private banking arm – Bank of Singapore – also unveiled a goal of increasing Greater China assets under management by 50 percent by 2026 under the leadership of ex-Credit Suisse Hong Kong branch CEO Rickie Chan.
ASEAN Corridor
One of the major strategic priorities to achieve this growth is the capitalization of increasing flows between Greater China and the bank’s top market in ASEAN. Examples of progress include a 39 percent year-on-year increase in Greater China franchise revenue generated in Southeast Asia in 2023. Cross-border QR transactions between the two regions also surged seven-fold since September 2023.
From 2013 to 2023, Greater China has become an increasingly significant contributor for OCBC. During this period, the regional business recorded a compound annual growth rate of 24 percent and its share of the group’s pre-tax profit increased from 6 percent to 21 percent. Today, it has 4,500 staff in 67 branches across 17 cities.
