UOB winds down digital credit assessment subsidiary

It had promised to invest S$12m on Avatec when it launched in 2018.

United Overseas Bank (UOB) is winding up operations of its subsidiary Avatec.ai (S) Pte Ltd, a digital solutions company using AI to analyse credit data.

In an SGX announcement, the Singapore bank said that the voluntary liquidation is part of “the ongoing rationalisation of the operations of the UOB group of companies.”

UOB Does not expect its liquidation to have any material impact on its earnings for the current financial year.

UOB first launched Avatec in April 2018 as a joint venture with Pintec Technology Holdings. Avatec provided a digital credit assessment solution in the Indonesian market, analysing digitised data with the use of artificial intelligence (AI) to determine an applicant’s credit quality within seconds. 

UOB had held a 60% stake in Avatec and had committed S$12m in investments over a two-year period following its launch.