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News Release - 18 Mar 2002
News Release - 18 Mar 2002
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JOINT NEWS RELEASE
UOB Launches the UOB Visa Business Card Programme for SMEs
18 March 2002, Singapore - United
Overseas Bank and Visa International today jointly announced the launch
of the new UOB Visa
Business Card Programme catering to the needs of Singapore's small
and medium sized enterprises (SMEs). The programme will enable SMEs to
achieve substantial operational efficiency and savings in day-to-day business
costs.
The UOB Visa Business Card is an effective payment tool designed for the
increasingly sophisticated needs of SMEs. It centralises all their business
spending such as travel and entertainment, office equipment, computer
software and utility bills in a single Card. By consolidating the different
payment needs of the company, the UOB Visa Business Card can help SMEs
save on their business and administration costs, and better manage and
control their expenses. With a more focused approach to the management
of its funds, the SME would be able to deploy its working capital more
effectively.
SMEs are a key pillar of Singapore's economy. According to the Singapore
Productivity and Standards Board, there are over 100,000 SMEs in the country
representing 90% of all businesses. They employ half of Singapore's workforce
and contribute to one third of the total added value to the economy. However,
given the current challenging economic climate, SMEs need to stay competitive
through efficiency and generating greater productivity.
Due to their relatively smaller size, SMEs traditionally have less leverage
in negotiating good deals with suppliers on day-to-day business expenses.
The new UOB Visa Business Card Programme offers Card members a suite of
special privileges that help alleviate regular business costs. These include
various offers on UOB bank services, rebates on Shell fuel, up to almost
a thousand dollars savings on SingTel's mobile and Internet services,
and discounts on Singapore Airlines fares.
Said Francis Hsu, Senior Vice President of UOB Credit Card Centre, "UOB
is pleased to be the first bank to bundle a Business Card with the commercial
banking business. As the market leader in SME loans, with over 17,000
SMEs currently banking with us, UOB has always been attuned to the unique
needs and demands of the SME market. We saw the need to develop a Business
Card for the SMEs as their needs are different from those of the MNCs.
Hence, we are excited to offer our SMEs a financial tool that is customised
to their needs and that will greatly help them add value to their business.
The UOB Business Card recognises the financial performance of the company
and at the same time, allows the company the flexibility of setting its
own credit limits."
Added Mr Hsu, "We are pleased that Shell and SingTel are partnering us
in recognising the importance of the SME segment and their contribution
to the Singapore economy." Companies can capitalise on the wide range
of efficiencies and savings which the programme brings. The UOB Visa Credit
Card allows up to 51 days interest-free repayment period. Cash flow management
is therefore made easier and micro-management of cash flow on a daily
basis is eliminated.
"As more and more SMEs grow in size and operations, it will become increasingly
necessary for these businesses to streamline their accounts for more effective
management of capital. Visa's case studies on small businesses have demonstrated
that by using Visa Business Card, one company was able to realise SGD
8,150 in annual interest on its own working capital by simply taking advantage
of the extended credit," said Dennis Ng, Singapore country manager, Visa
International Asia Pacific.
"The UOB Visa Business Card combines the strength of a bank, which understands
its customer's needs in every country where it has a presence, with the
expertise and reach of the world's number one payment brand, to provide
a complete financial solution package for SMEs. The UOB Visa Business
Card with its whole suite of benefits and services is intended to give
SMEs a competitive advantage in the increasingly cashless world of commerce,"
Dennis added.
Accepted at Visa's worldwide network of over 22 million merchants, the
UOB Visa Business Card makes cross-border procurement simple and fast,
without having to incur extra costs for funds transfer. All spending by
Cardmembers is summarised in a single monthly statement. Instead of a
flood of invoices from suppliers, there is only one channel for consolidated
expenses. Only one payment a month is needed no matter the number of suppliers
the company has. This greatly simplifies accounting and administration
procedures, and allows business managers to better analyse spending trends
and review budgets. It also reduces the time needed for tax preparation.
UOB Visa Business Cardmembers can also access their account information
online.
"With Visa Business Card's established success in Asia and around the
world and UOB's strengths in meeting the needs of the local SME market,
we at Visa are confident that the new UOB Visa Business Card will be very
well received by local companies," added Dennis.
Other Visa card products that UOB is offering to the business community
in Singapore include the UOB Visa Corporate Card, the UOB Visa Purchasing
Card and UOB Visa Distribution Card, which are targeted at the payment
and electronic procurement needs of large businesses, multinational corporations
and government sectors.
United Overseas Bank
United Overseas Bank (UOB) is focused on enhancing its leadership in the
consumer market. To date, UOB is the largest card-issuing bank in Singapore
with a card base of more than 730,000 and a market share of more than
30 per cent. In addition, UOB has the largest base of merchants in Singapore,
both for consumer and commercial credit card acceptance. It is also both
the largest Purchasing Card issuer and acquirer in Singapore.
Under the UOB Rewards Unlimited Programme, Cardmembers enjoy a wide range
of exclusive rewards, including shopping and dining for free. With its
collaboration with Singapore Airlines, Cardmembers can enrol in the KrisFlyer
Programme and redeem free flights to destinations of their choice. UOB
Credit Cardmembers can access their credit account information, and view
and redeem rewards online at www.uobgroup.com.
Visa Asia Pacific
Visa is the world's leading payment brand and the largest payment system
worldwide. There are currently more than one billion Visa cards on issue
around the world. Visa-branded cards generate almost US$2 trillion in
annual volume worldwide and are accepted at 22 million merchant locations
and 700,000 automated teller machines. Visa is also a leader in electronic
commerce, with more than 50 percent of electronic transactions being made
with Visa.
In Asia Pacific, Visa has a market share of more than 56 percent in terms
of retail sales volume, more than all other payment brands combined. By
the end of 2001, the number of Visa cards on issue in Asia Pacific had
risen to 330 million, including all Visa, Visa Electron, Interlink, and
PLUS-branded cards. During 2001, a total of US$480 billion was spent in
Asia Pacific including China using Visa cards, a growth of 70 percent
over the previous year.
Visa Asia Pacific's Internet address is www.visa-asia.com.
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