OCBC said on Friday that it signed a memorandum of understanding with Chinese technology giant Xiaomi and small-and-medium-sized enterprise lender Hanhua Financial Holding to promote an integrated financial services model in China.
The platform was expected to provide financial services across China, particularly to Xiaomi’s more than 300 million retail customers and business partners, it said.
“The first-of-its-kind venture between a Singapore bank and a major Chinese tech company will allow OCBC Bank to leverage on Xiaomi’s technological resources and capabilities as well as Hanhua’s knowledge of China’s financial services industry to deepen its presence in Greater China,” OCBC said in a filing to SGX on Friday.
OCBC said its contribution to the tie-up would be its regional expertise in financial services, including commercial banking and wealth management.
Xiaomi is the world’s fourth largest smartphone brand and the world’s largest consumer internet-of-things platform, while Hanhua has a customer base of more than a million small and medium-sized enterprises and individual clients and a branch network in 28 major Chinese provinces in China, the statement said.
The collaboration’s business model or platform, once developed, would benefit from Chongqing’s location amid China’s Belt and Road Initiative and the Yangtze River Delta Economic Zone, it said.
The MOU was signedat the inaugural Singapore-China (Chongqing) Financial Summit, held in Chongqing and organized by the Monetary Authority of Singapore, the People’s Bank of China, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission and the Chongqing Municipal People’s Government.