UOB to invest up to $1b in IT

It's trying to ramp up fintech innovation.

UOB plans to invest up to $1b in IT for the next three years alone, UOB Kay Hian revealed.

UOB's IT expenditure already comprises 7% of its operating expenses, which is similar to its peers.

The bank is trying to push more innovation in fintech. UOB Kay Hian said it became the first bank to enable mobile payment through social messaging apps by launching a peer-to-peer (P2P) fund transfer app, UOB MyKey on 17 July.

UOB is also utilising its Vietnam market to test digital banking. It launched a digital bank in the country, where customers used the platform for payments and checking account balances.

Moreover, it launched a new branch concept at its City Square branch. The new branch has only two to three counter staff that are trained for cross-selling. Backroom headcount is small as well.

The branch uses smart self-service machines and digitised transactions.

UOB Kay Hian said the new branches could help UOB save up as floor space is reduced by about 20%.