(Yicai Global) April 17 -- Chinese fintech platform Pintec, run by Pintec Technology Holdings Ltd., is teaming up with Singapore’s second-largest commercial lender United Overseas Bank Ltd. as it looks to expand across Southeast Asia, where financial services are scarce.
The pair unveiled their new joint venture Avatec.Ai S Pte. Ltd., which will be 60-percent owned by the Singaporean bank, on April 15, Pintec said in a press release. UOB will inject a total SGD12 million (USD9.2 million) into the new company over the next two years.
Avatec will offer smart credit services to financial companies and institutes across Southeast Asia, where only 27 percent of the 600 million population hold bank accounts, according to 2016 data from KPMG, one of the world’s biggest auditors.
The partnership will help Pintec launch its next-generation smart credit assessment solutions in Indonesia, followed by other Southeast Asian markets within two years, said William Wei, founder and chief executive of Pintec.
A number of Chinese fintech platforms have been looking to head abroad since 2016 by investing overseas or exporting technology, with the latter proving more popular. JD Finance, the financial arm of China’s second-largest online retailer JD.Com Inc., set up a joint venture with Thailand’s The Central Group last year to share its online payment solutions.
Editor: James Boynton