United Overseas Bank (UOB) U11 and Lazada Group have signed a memorandum of understanding (MOU) to collaborate on retail products and banking solutions for their combined customer base in Singapore, Malaysia, Indonesia, Thailand and Vietnam.
UOB will offer its new customers Lazada cashback vouchers worth up to $200 as a welcome gift, says the bank on April 17.
The regional strategic partnership will also help e-commerce merchants on the Lazada platform access financing.
This is Lazada’s first partnership with a bank across a variety of payments and financial services in Southeast Asia, as well as UOB’s first regional collaboration with an e-commerce platform.
Following UOB’s acquisition of Citigroup’s consumer banking businesses in four Asean markets, UOB will continue the Citi-Lazada co-branded credit cards in Thailand, Malaysia and Vietnam.
In these three markets, the cards will be refreshed as new UOB-Lazada co-branded credit cards later this year with enhanced benefits. Cardholders will also gain access to special Lazada deals during mega sale events.
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UOB and Lazada are looking to extend the co-branded credit card partnership to Singapore and Indonesia.
As Lazada expands its localised payments and financial services products throughout the region, the e-commerce platform and UOB also intend to collaborate on cash management and transaction processing services for Lazada sellers across the region.
The two partners are looking into offering loans to merchants on the Lazada platform, with a pilot launch planned for this year. The collaboration will focus on giving merchants access to streamlined onboarding, approval and disbursement processes for loans and financing across their businesses.
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Frederick Chin, head of group wholesale banking and markets at UOB, says: “Asean plays a strategic role as an economic powerhouse to the world. As a bank with a strong presence in Asean, our ambition is to open doors to new business opportunities across the region. Working with an e-commerce partner like Lazada complements our continued effort to bring personalised and innovative solutions to a thriving Asean. Through this partnership, consumers and businesses can benefit from seamless financial services that bring about access to rewarding experiences within Asean’s dynamic digital landscape.”
James Dong, Lazada Group’s CEO, says: “Lazada is committed to building an open, accessible ecosystem for Southeast Asia. We are pleased to share this vision with UOB. For consumers, we will offer easy-to-use, convenient and secure payment and financing options to enable their lifestyle needs. For brands and sellers, we are here to help them scale up their businesses and accelerate growth. We are here for the long haul, to achieve sustainable, long-term growth with all our ecosystem partners.”
Shares in UOB closed 8 cents lower, or 0.27% down, at $30.05 on April 17.
