UOB and its subsidiary UOB China have signed agreements to become direct participants in China’s Cross-border Interbank Payment System (CIPS). This move will allow UOB to offer comprehensive cross-border renminbi (RMB) clearing, settlement, and payment services to businesses and financial institutions globally. Clients will benefit from real-time gross settlement and remittance with reduced intermediate steps, leading to lower payment and clearing costs. Additionally, UOB aims to expand its trading network by connecting with over 1,600 CIPS participants worldwide.
The demand for RMB payments and trade settlements has been on the rise internationally. Notably, more than half of these transactions occur within UOB’s primary markets in ASEAN and Greater China. The bank reported that its cross-border RMB payments and trade settlement flows doubled between 2023 and 2024, with expectations for continued growth in the use of RMB for investments, payments, and trade.
Ms So Lay Hua, Head of Group Transaction Banking at UOB, expressed the bank’s commitment: “UOB is honoured to be a direct overseas participant of CIPS, which will significantly enhance our capability to serve regional clients in their RMB businesses. Tapping on our extensive network and transaction capabilities, we will continually deliver efficient, transparent and cost-effective services to our clients.”
ASEAN has maintained its position as China’s largest trading partner for five consecutive years. To support businesses in managing their operating cash flow across the region, UOB China has introduced solutions like the China-ASEAN Cross-Border Cash Sweeping and Liquidity Management Solution. In January 2025, UOB China completed the first cross-border refinancing transaction in RMB by a foreign bank in China.
