UOB and PINTEC join forces to make it smarter and faster for companies to extend credit with next-generation digital credit assessment solution

United Overseas Bank Limited (UOB) and Pintec Technology Holdings Limited (PINTEC) announced the launch of their joint venture, Avatec.ai (S) Pte Ltd (Avatec). Avatec aims to help banks and finance companies to be more efficient and more accurate when assessing credit quality of potential customers, including those who are new to credit.  The digital solution can also be extended to companies in sectors such as e-commerce, retail and travel that offer financial products such as point-of-sale financing.

According to KPMG, only 27 per cent of Southeast Asia’s 600 million people hold a bank account1. Within this segment, many people are still underserved when it comes to being able to access credit. These include young professionals at the beginning of their careers and small businesses.

Avatec provides companies offering financial products with an innovative next-generation credit assessment solution that analyses a broader set of digitised data beyond that which is traditionally used in evaluating personal or business credit applications. Avatec’s credit assessment tool harnesses the power of artificial intelligence, machine learning and anti-fraud algorithms to determine an applicant’s credit quality within seconds.

Mr Dennis Tan, Chief Executive Officer Designate, Avatec, said that the new company brings together the insights gleaned from UOB’s more than 80 years of serving consumers and businesses in Southeast Asia and PINTEC’s financial technology (FinTech) capabilities to help companies tap growth opportunities within the region.

“Avatec’s end-to-end intelligent digital credit assessment solution is not only useful to financial institutions, it will also enable companies in sectors such as e-commerce, telecommunications, retail and travel to offer financial products such as point-of-sale financing, and personal and business loans quickly and efficiently. By making financial products more inclusive, these companies will be able to connect with a larger base of customers in the region,” Mr Tan said.

Avatec is incorporated as a subsidiary company of UOB, with UOB owning the majority stake (60 per cent) and PINTEC the minority stake (40 per cent). The Bank will invest up to S$12 million in Avatec over the next two years.

PINTEC is a leading independent technology platform enabling financial services in China. It aims to leverage technology to advance financial services and to level the playing field by providing customisable and modular FinTech solutions to institutions and their customers. Used in fields such as finance, online travel, e-commerce, offline retail payment and business lending, these solutions include consumer finance solutions, SME loan solutions, wealth management and robo-advisory solutions, online insurance solutions.

In 2015, PINTEC launched its digital lending solution “Dumiao” which utilises data such as third-party credit information and e-commerce transactions to generate credit decisions based on artificial intelligence, blockchain, and machine learning, for different customer groups. PINTEC’s clients include financial institutions and internet platforms in China, such as XWBank, YNTRUST, China Telecom’s BestPay unit, VIPSHOP, Qunar and Ctrip. PINTEC expanded into Southeast Asia in October 2017 with the launch of Singapore-based PIVOT to offer digital wealth management technology services in the region.

Also view a previous article by BIIA

1 Source: ‘Fintech: Opening the door to the unbanked and underbanked in Southeast Asia’, KPMG, 2016, https://home.kpmg.com/xx/en/home/insights/2016/04/fintech-opening-the-door-to-the-unbanked-and-underbanked-in-southeast-asia.html

Source: PR Newswire