One of the leading banks in ASEAN, UOB, and one of the biggest ecommerce platform, Lazada Group, have entered into an agreement based on a Memorandum of Understanding (MoU) to collaborate in retail, and banking solutions to develop a digital ecosystem in the Southeast Asian region through enhanced payments, and financial services.
Established in 1935, UOB, is one of the leading banks in Asia with a headquarter in Singapore, and subsidiaries in China, Indonesia, Malaysia, Thailand, and Vietnam. The bank currently have branch offices in 19 countries in Asia Pacific, Europe, and North America.
Meanwhile, Lazada is one of the top eCommerce platforms in ASEAN, established roughly 11 years ago in 2012. The company is located in Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. Lazada focuses on eCommerce, with a technology-driven ecosystem linking more than 160 million users to over one million sellers.
Through its combined customer bases in Southeast Asian markets namely, Singapore, Malaysia, Indonesia, Thailand, and Vietnam, the strategic partnership will see two industrial leaders cooperating to increase access to financing for e-commerce sellers on the Lazada platform. The partnership is seen to bring benefits for both parties, customers, and sellers when using Lazada, and UOB when shopping.
The partnership will be the first for Lazada to cooperate with a bank across a variety of payments, and financial services in Southeast Asia. Also, it will be UOB’s first regional collaboration with an e-commerce platform.
The partnership will tap into Lazada’s technology and position as a leading Southeast Asian e-commerce platform, and UOB’s proven expertise in financial products, digital banking services, and long-establishment of trust with customers. Both expertise will allow customers and sellers to enjoy better access to enhanced benefits from payment, and financial services to meet both needs.
UOB also has ambitions of expanding its opportunities across the ASEAN region, bringing about access to the ASEAN’s dynamic digital landscape.
“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 personalized, 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,” said Frederick Chin, the Head of Group Wholesale Banking, and Markets of UOB, based on their press release, on April 26, 2023.
Meanwhile, Lazada also is committed to building an open, accessible digital ecosystem with UOB through secure payment, and financing options. “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,” said James Dong, the Chief Executive Officer of Lazada Group.
“Lazada intends to be present for the long term, to achieve sustainable growth, and in the long term together with all partners in our ecosystem,” added Dong.
The development of the digital ecosystem will provide enhanced benefits for consumers in several ASEAN countries. Such as credit card partnerships in Singapore, Malaysia, Vietnam, and Indonesia. Both Lazada, and UOB plan on expansion to its localized payments, and financial services throughout the ASEAN region. Through its e-commerce platform, UOB plans to cooperate on cash management, and transaction processing services for Lazada sellers in ASEAN.
On the other hand, both parties offer loans to sellers through the new digital lending experience offering integrated financial supply chain management solutions giving sellers access to streamlined onboarding, approval, and disbursement processes for loans, and financing across their businesses.