OCBC Bank is set to scale up its financing for serial entrepreneurs to S$5 billion by 2028, expanding a programme that originated in Singapore in 2019. This move reflects the bank’s ongoing commitment to supporting entrepreneurs with multiple ventures across the region.
As reported by The Business Times, OCBC intends to channel an additional S$3.5 billion into key regional markets, building on the S$1.5 billion already disbursed to over 1,800 entrepreneurs managing more than 8,000 businesses in Singapore and Malaysia as of end-2024.
Following a successful pilot in Malaysia, the programme was formally launched in the country earlier this month. OCBC also plans to introduce the initiative in Hong Kong by the end of 2025, with Indonesia to follow. The strategy signals a significant expansion of the bank’s regional presence in entrepreneurial banking.
OCBC defines serial entrepreneurs as individuals who hold majority ownership in more than one business. The bank’s internal data reveals that one in three businesses in Singapore are founded by serial entrepreneurs, while in Malaysia, nearly half of OCBC’s small business clients fall into this category. Moreover, companies led by these entrepreneurs demonstrate a 30 percent lower non-performing loan rate compared to first-time founders, according to the bank’s analysis.
A distinctive feature of the initiative is OCBC’s group-based lending model, which evaluates an entrepreneur’s ventures collectively rather than on an individual business basis. This consolidated approach allows the bank to take into account the entrepreneur’s broader track record when assessing financing eligibility. The model offers flexibility to new businesses under the same entrepreneur that may not yet have a proven profit history.
Each participating entrepreneur is assigned a dedicated relationship manager, supported by specialists in cash management, corporate advisory, and wealth planning. This structure enables OCBC to deliver tailored financial solutions, bridging funding gaps that are often underserved by traditional banking models.
In Malaysia, the programme has gained significant traction. During the pilot phase, approximately 300 companies secured loans totalling over RM850 million. According to OCBC Malaysia’s head of wholesale banking, around a third of entrepreneurs who were offered principal financing opted into the programme, underscoring robust demand in the market.
The Malaysian version of the programme has been tailored to local needs, enabling newer businesses to qualify for funding without the conventional two-year operational track record. Entrepreneurs also benefit from the OCBC Velocity platform, which streamlines financial management across multiple ventures through a unified digital interface.
This initiative forms part of OCBC’s broader regional strategy to serve the evolving needs of entrepreneurs leading multiple ventures, reinforcing its role as a long-term financial partner in their growth journeys.
-Fintech News
