United Overseas Bank (UOB) has set up a new accelerator program for 30 start-ups to help foster greater technological innovation in Singapore.

United Overseas Bank (UOB) has set up a new accelerator program for 30 start-ups to help foster greater technological innovation in Singapore.

The 100-day program will be run by The FinLab, UOB’s joint venture with Infocomm Investments Pte Ltd (IIPL), with each start-up receiving $30,000 in seed money in return for a six per cent equity stake.

UOB’s head of group channels and digitalisation, Janet Young, said the initiative aimed to find the “most creative and intelligent minds” from a range of disciplines, to help the bank realise new innovations in customer experience.

“[This will] help us break new ground in making the customer experience more intuitive, relevant and engaging,” Young said.

“We also hope to help the start-ups to become leaders in fintech innovation.”

Infocomm’s head, Dr. Alex Lin, said that many local banks had decided to pursue similar initiatives and being more “innovation driven”.

“I am confident that more banks will start to adopt innovation in its DNA thereby boosting Singapore’s fintech ecosystem,” he said.

The FinLab’s managing director, Felix Tan, said that banks realise the importance of innovation but often lack the engagement with the “brightest” disruptors.

“On the other hand, start-ups often lack the resources and capital to endure the typical two-to-three year sales cycle for selling solutions to financial institutions,” he said.

“This program helps to close the gap between the banking industry and budding entrepreneurs.”

Each start-up that participates in the program will also receive $400,000 in software credits sponsored by The FinLab’s partners and about $7,000 in complimentary office space.

UOB confirmed the program will be rolled out in Singapore over three cycles in the next two years.