Sharper focus multiplies the network effect across UOB’s Asian franchise
United Overseas Bank (UOB) yesterday outlined three key priorities for sustainable growth beyond the current geopolitical and macroeconomic environment where volatility and uncertainty reign. The Bank shared its approach at its annual Corporate Day, themed, ‘Focusing on our Fundamentals’.
In his keynote address, Wee Ee Cheong, UOB’s deputy chairman and chief executive officer, said that with rising global trade tensions and concerns over a synchronised global slowdown, it was essential that the Bank focussed on its key priorities of regional connectivity, ecosystem partnerships, and strong balance sheet and quality earnings.
“In such an environment, it is even more important that we focus on the fundamentals and not lose sight of our main objective which is to continue to achieve long-term growth that is balanced with stability.
“At UOB, this rests on our consistent approach of putting our customers at the centre with their long-term interests in mind. This has always guided our decisions and actions,” Wee said in a statement.
“Throughout Asean, we are strengthening our capabilities across our network, broadening our impact by building ecosystems and helping our customers seize opportunities across the region. As we sharpen our customer-centric focus, we see a greater multiplier or network effect across our franchise.”
The Corporate Day covered how UOB will continue to build on its regional operating model, to invest at scale in digital and new technology, to equip its people for the future and to drive productivity and performance.
“Currently, more than 40 per cent of UOB’s total Group operating profit is derived outside of Singapore. Of which, close to 80 per cent comes from our operations in Asean and Greater China.
“We expect these numbers to go up as we strengthen our regional connectivity, collaborate in win-win partnerships to tap intra-regional flows and the region’s rising affluence for growth,” Wee said.
He also addressed how the Bank’s regional franchise best positioned it to seize Asean’s huge potential.
“Our deep local knowledge, sector expertise and network across Asean and Greater China enable us to help our customers connect the dots and navigate the complexities in this diverse landscape,” Wee said.
“For example, in 2018 alone, we helped more than 500 companies realise their expansion ambitions across the region through UOB’s extensive network. This is set against rising crossborder revenue in Asia, with an expected market potential of around US$40 billion in 2020.”
New business flows into Southeast Asia are very likely given the escalation in global trade tensions. More businesses are expected to diversify their supply chains into Asean and for local suppliers to benefit from that shift of orders into the region. In this regard, UOB is also well positioned to help its customers capture this opportunity for growth.
Given Asean’s prospects, the Bank has continued to make significant investments in developing its digital capabilities to make banking simpler, smarter and safer across all its network.
“Throughout the region, we have invested in an omnichannel approach: engaging our customers across a range of touchpoints that best suit them – offline or online, physical or digital or a combination. This is because we know that digital is not the only way that our customers want to be served.”