Having cemented its presence in Singapore, UOB continues to expand its transaction banking presence across Asia, particularly in its key ASEAN markets comprising Indonesia, Malaysia, Thailand and Vietnam, reinforcing its leadership through a combination of strategic digital investments, strong client relationships and focused sales advisory. UOB’s group transaction banking (GTB) business has consistently registered a strong growth trajectory with its solid performance clearly demonstrated by a 35% revenue growth from 2022 to 2024, and delivered yet another milestone in 2024. The bank attributed this to its ability to secure high-value mandates with complex transaction banking solutions. UOB noted that it has gained market share from both global and domestic banks by offering integrated solutions that address client pain points across multiple jurisdictions and by winning landmark deals from these incumbents. As businesses across the region face evolving challenges in liquidity management, trade finance and financial supply chain management, UOB has prioritised delivering integrated, digital-first solutions that cater to both multinational corporations and emerging enterprises. The bank states that its deep knowledge of regional markets, strong banking relationships and ability to structure bespoke solutions across jurisdictions allow it to help businesses manage complex cross-border transactions efficiently. It also enables effective treasury and working capital management through sector-led advisory and solutioning, supporting clients directly or by connecting them with their eco-system partners, upstream and downstream across the region. Winning more complex mandates with integrated solutions UOB believes that its ability to offer comprehensive real-time payments and digital collection solutions that integrate seamlessly with clients’ end-to-end business and operating workflows, and structured working capital solutions and multi-country liquidity solutions which enhance treasury operations, has helped it win mandates from global and regional businesses. It has successfully secured mandates from multinational corporations that require seamless integration across Asia, especially in Southeast Asia, while navigating regulatory challenges unique to each country. Among its key mandates is a cash management appointment from one of Singapore’s largest persified conglomerates, covering operations in Singapore, Indonesia and Vietnam. Similarly, a major Thai energy company selected UOB as its regional banking partner to support its multi-entity regional interest optimisation overlay and payments across Indonesia, Malaysia, Hong Kong and Thailand. UOB’s advisory and whiteboarding sessions were well received, strengthening confidence in awarding the regional mandate. Adrian Ong, head of cash management sales, said UOB’s expansion into complex treasury management and financial supply chain management (FSCM) solutions for large-scale manufacturers, technology firms and industrial groups has been supported by its ability to structure solutions that address restricted currencies and regulatory compliance across multiple jurisdictions. Its experience in navigating perse regulatory environments in markets such as China, Indonesia and Vietnam allow it to provide enhanced solutions for businesses operating or expanding into ASEAN markets. Ong explained that UOB's strategy has been to provide seamless enterprise resource planning (ERP) and treasury integration, as well as regional liquidity solutions that enable enhanced operating efficiencies, effective treasury management and seamless connectivity across markets for clients. “Our focus has been on delivering truly seamless regional solutions that align with our clients' operating structures. We are winning mandates because of the value of our strong client advisory and advocacy, depth of our digital capabilities, ability to seamlessly integrate with clients’ ERP systems and our strong regional presence. The bank reported an 81% year-on-year (YoY) increase in significant cash management mandates in 2024, with around 60% coming from new-to-cash management clients. This reflects its ability to compete effectively against both global and domestic banks. Enhancing cash management with API integration and advanced liquidity structures Ong highlighted that the bank’s ability to embed itself into clients’ financial ecosystems has been a critical factor in its success. The bank states that it has moved beyond traditional virtual accounts by introducing multi-layered sub-account structures, designed to help businesses manage complex cash flows, automate reconciliation and optimise liquidity across multiple entities. UOB’s host-to-host connectivity and application programming interface (API)-based solutions allow for real-time automation of payments, collections and treasury management. Ong remarked that the bank saw a 33% YoY growth in API call volumes, driven by increased adoption in the e-commerce, fintech and digital services sectors. “API connectivity is no longer optional—it is now a core requirement for businesses that operate at scale. Our solutions ensure that businesses can automate their payments, collections and account management seamlessly,” said Ong. The UOBSend solution enables low-cost cross-border payments by leveraging automated clearing houses (ACHs) across various ASEAN markets. According to Ong, this provides businesses a value-adding alternative to traditional high-cost remittance channels while maintaining regulatory compliance. Expanding trade and financial supply chain management As businesses expand their global trade networks, managing cash flows efficiently across a large community of suppliers and multiple jurisdictions has become increasingly complex. Following its success in cash management, UOB has strengthened its trade and financial supply chain management (FSCM) solutions to help businesses overcome regulatory hurdles, mitigate foreign exchange risks and optimise working capital through sector-led advisory and solutioning, supporting clients directly or by connecting them with their ecosystem partners, upstream and downstream across the region. One of UOB’s key differentiators in trade finance is its ability to structure financing solutions in markets with currency restrictions. Holding a special SAFE (State Administration of Foreign Exchange) licence in China, the bank provides dual-currency trade settlement in the Chinese renminbi (RMB) and the Indonesian rupiah (IDR), giving businesses greater flexibility in managing cross-border trade payments, collections and liquidity. These differentiating capabilities have allowed UOB to structure deals for companies with operations across China and Southeast Asia, ensuring smoother transaction flows while adhering to local regulations, particularly in markets with currency restrictions. UOB has strengthened its trade and financial supply chain management capabilities by building resilient, technology-enabled supply chains, improving cross-border financing structures and aligning with sustainability goals. As businesses increasingly seek more efficient and flexible financing models, UOB has introduced deep-tier financing, enhanced multi-currency trade finance, and environmental, social and governance (ESG)-linked supply chain financing solutions. Supporting deep-tier financing and supplier ecosystems According to Ng Poh Yee, head of trade and financial supply chain management sales, UOB has focused on developing deep-tier financing solutions that allow suppliers beyond the primary anchor to access working capital more efficiently. She explained that one of the biggest challenges in supply chain financing is ensuring that smaller-tier suppliers have access to sufficient liquidity, as early as the pre-shipment stage. In a recent transaction, UOB structured a financing programme for a large infrastructure project owner. This initiative allowed not only the main corporate entity but also its tier-two and tier-three suppliers to access working capital under favourable terms. By extending financing down the supply chain, the programme helped ensure liquidity for smaller suppliers, minimising the risk of disruptions and allowing for greater efficiency in production and delivery. Ng noted that digitalisation has played a crucial role in facilitating this model, enabling seamless connectivity and interaction between the anchor and its ecosystem of suppliers—broad based or multi-tier—to facilitate the initiation of financing with UOB. “We have seen an increase of over 150% in the digital onboarding of suppliers, which significantly reduces manual paperwork and accelerates financing approvals,” she said. Additionally, UOB’s digital trade finance transactions have grown by 33% YoY, reflecting the increasing adoption of automated supply chain solutions. Enabling cross-border trade for perse industries UOB’s expertise in navigating regulatory requirements has been instrumental in facilitating trade finance solutions, particularly in markets with currency restrictions. It continues to expand its multi-currency and cross-border financing solutions to cater to industries with long payment cycles and complex financing needs, such as automotive, commodities and manufacturing. Another area where UOB has focused its efforts is in supporting businesses that operate across multiple jurisdictions, ensuring that financing structures align with longer payment cycles, seasonal demand shifts and varying risk profiles. According to Ng, trade financing has to be tailored to match industry-specific needs rather than being a one-size-fits-all solution. For instance, a regional heavy industrials conglomerate with operations in China, Singapore, Hong Kong and Indonesia required a financing structure that could facilitate seamless cross-border transactions while managing foreign exchange volatility. UOB designed a structured trade financing solution that allowed the company to synchronise payment schedules across different currencies, ensuring that working capital remained fluid and operational stability was maintained. Ng added that UOB has seen strong growth in multi-currency financing solutions. “Cross-border and intra-Asia trade and financial supply chain mandates have grown by 109% YoY, and we have observed increased demand from sectors such as manufacturing and commodities,” she said. Strengthening regional leadership Looking ahead, UOB aims to deepen its transaction banking capabilities by leveraging technology, expanding its sustainability-linked financing portfolio and enhancing regional partnerships. While the bank has seen strong momentum in its trade finance and FSCM businesses, lower global interest rates and declining net interest margins remain a challenge. At the same time, UOB is seeing strong demand for regional treasury and cash management solutions, as businesses expand across ASEAN. The bank is investing in artificial intelligence (AI)-powered risk assessment models and blockchain-enabled trade finance to enhance transaction security and efficiency. Additionally, with the rapid growth of embedded finance, UOB is working with fintechs and digital platforms to integrate its banking solutions more seamlessly into corporate ecosystems. So Lay Hua, managing director and head of group transaction banking, acknowledged that while UOB has seen strong momentum in its transaction banking business, the industry-wide decline in net interest margins due to lower global interest rates has created headwinds for profitability. She also highlighted that sustainability-linked financing has emerged as a major growth area, with UOB seeing a 45% increase in mandates tied to ESG financing structures. One notable example is a construction and infrastructure anchor that augmented its general supplier financing with a green supplier financing tranche to enable suppliers with green qualified products to raise ESG-related supplier financing, which registered a strong take-up rate. This has enabled the anchor to integrate ESG trade finance solutions into its treasury management framework, reducing financing costs while advancing sustainability objectives for its supplier ecosystem. As UOB continues to scale its transaction banking, cash management and FSCM services, the bank is positioning itself as a leader in Asia’s evolving financial landscape. By deepening its engagement with regional industries, expanding digital trade finance and embedding sustainability in its services, UOB aims to strengthen its competitive edge against both global and domestic institutions. While lower interest rates pose profitability challenges, UOB’s emphasis on significant deal mandates, technology, multi-tier financing and ESG-aligned cash and trade finance is positioning it to drive long-term growth and maintain its leadership in the sector.
