UOB and its subsidiary, UOB China, have entered into agreements to become direct participants in China's Cross-border Interbank Payment System (CIPS). This development allows UOB to offer comprehensive cross-border renminbi (RMB) clearing, settlement, and payment services to businesses and financial institutions both within and outside of China. The bank aims to provide real-time gross settlement and remittance services while minimizing intermediate steps and costs associated with payments and clearings.
The demand for RMB payments and trade settlements has been increasing globally, with over half of these transactions occurring within UOB’s core markets in ASEAN and Greater China. From 2023 to 2024, the bank's cross-border RMB payments and trade settlement flows doubled. The trend towards using RMB for investments, payments, and trade is expected to continue.
Ms So Lay Hua, Head of Group Transaction Banking at UOB, stated: "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. This positions us to achieve our vision of being the top transaction bank of choice in ASEAN. In addition, it contributes to Singapore’s role as a regional financial services hub and offshore RMB centre."
ASEAN has maintained its status as China's largest trading partner for five consecutive years. It plays a crucial role in the international use of RMB. To support businesses in managing their cash flow across the region effectively, UOB China has introduced solutions like the China-ASEAN Cross-Border Cash Sweeping and Liquidity Management Solution along with one-stop international trade financing services.
In January 2025, UOB China completed the first cross-border refinancing transaction in RMB by a foreign bank in China. This initiative assists importers and exporters in addressing working capital challenges.
The Cross-border Interbank Payment System (CIPS) is authorized by the People’s Bank of China as a wholesale payment system designed for settling trading activities and investments using renminbi. As of May 2025, CIPS comprises 174 direct participants alongside 1,509 indirect participants globally.