OCBC plans to increase its financing for serial entrepreneurs to S$5 billion by 2028, expanding a programme first launched in Singapore in 2019.
According to The Business Times, the bank aims to deploy an additional S$3.5 billion across its key markets, building on the S$1.5 billion already extended to more than 1,800 entrepreneurs operating over 8,000 businesses in Singapore and Malaysia as of end-2024.
The initiative, which recently launched in Malaysia following a pilot, is set to be introduced in Hong Kong by the end of 2025 and later in Indonesia.
OCBC defines serial entrepreneurs as individuals with a majority stake in more than one business.
The bank’s data shows that one in three companies in Singapore are founded by serial entrepreneurs, while in Malaysia, nearly half of the small businesses OCBC serves are owned by this group.
Internal figures also indicate that ventures led by serial entrepreneurs have a 30 per cent lower non-performing loan rate compared to those run by first-time founders.
Rather than evaluating businesses individually, the bank assesses an entrepreneur’s ventures as a group.
This consolidated approach considers the entrepreneur’s overall track record when determining financing eligibility, which can benefit new ventures that may not yet have a profit history.
Each entrepreneur is supported by a relationship manager with access to specialists in cash management, corporate advisory, and wealth planning.
This structure allows OCBC to provide more tailored support and address funding gaps not typically served by traditional models.
In Malaysia, OCBC officially rolled out the programme earlier this month after a year-long pilot.
During the pilot phase, about 300 companies took up more than RM850 million in loans.
OCBC Malaysia’s head of wholesale banking said a third of entrepreneurs who were offered principal loans opted into the programme, indicating strong market demand.
The Malaysian arm has adapted the group-based lending model to suit local needs, offering access to capital without requiring a new business to operate for two years before qualifying for financing.
It also provides support through the OCBC Velocity platform, which allows entrepreneurs to manage financial activities across ventures through a single login.
The initiative is part of OCBC’s broader strategy to support the growth of entrepreneurs operating multiple ventures, positioning the bank as a long-term partner in their expansion journey.
Featured image: Edited by Fintech News Singapore, based on image by OCBC
