OCBC puts faith in serial entrepreneurs

Singapore bank OCBC is planning to lend a lot more to serial entrepreneurs after its data showed them to be a strong market for lending.

“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,” reports Fintech News Singapore.

“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.

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.”