United Overseas Bank has launched a digital financing solution for car buyers in Singapore. Here are the advantages of the service.
United Overseas Bank (UOB) launched what it says is the fastest digital loan solution for car buyers in Singapore, according to a company statement on Monday. The bank's digital service reduces the time it takes to approve a car loan application from an average of three working days to 15 minutes.
«UOB's completely-digital car financing solution removes the need for manual form filing, the furnishing of paper documents and long processing times,» said Jacquelyn Tan, UOB head of personal financial services, in Singapore at a media briefing.
UOB signed agreements with seven car dealerships and Carousell, an online classified ads marketplace, to form the island's largest car ecosystem. Together, the eight car partners account for almost two thirds of all cars sold in Singapore, as of June 2018.
How It Works
A car dealer needs to enter three data points for the customer – name, mobile phone number and NRIC number – into a secure and customized online portal. The buyer then logs in using the SingPass (password) and proceeds to consent to the use of his or her personal information. This enables the digital form to be automatically filled in with details extracted from MyInfo – a personal data platform piloted by the government of Singapore.
If the customer gives the go-ahead, the loan is instantly processed via the bank's proprietary credit assessment engine. The status of approval will be made available within minutes.
Tie-Up With Carousell
UOB is currently the exclusive banking partner with Carousell for car loans. Carousell is one of Singapore's largest online marketplaces, with 10,000 new and second-hand cars listed.
Having found a car on Carousell, the prospective buyer only has to click on a link for a car loan and enter the personal details. Once UOB approves the application, the car dealer calls the buyer to confirm the purchase. Based on data from the Credit Bureau of Singapore, UOB financed one in four new car sales (for the quarter ended March 2018).
