OCBC is waving processing fees for women-owned start-ups in Singapore
The OCBC Women Entrepreneurs Programme will go into effect in April and will be the first program targeting female entrepreneurs in the country. OCBC will waive the 1.5% processing fee for loans up to $100,000 for start-ups that are less than two years old and founded by women. This decision was made as part of a new program aimed at small and medium-sized enterprises (SMEs) in Singapore, which was announced on March 8.
The bank in Singapore was inspired by a similar program already created by OCBC Indonesia in 2020. Since its launch, OCBC Indonesia has supported approximately 1,400 women entrepreneurs running micro, small and medium-sized enterprises (MSMEs) with over $300 million in loans.
According to data from OCBC in Singapore, women-owned SMEs recorded 20-30% lower sales turnover growth in their first three years of operation. Additionally, there has been a notable rise in such enterprises from 2018 to 2023, with the share of new women-owned businesses increasing by 18% and 30%, respectively. Last year, women-owned SMEs constituted half of the new businesses in the education and retail sectors, and over a third in healthcare, business services and food services.
According to the Head of Global Commercial Banking at OCBC, Linus Goh, the program is designed to enhance the socioeconomic progress of women in the economy and support the growth of businesses owned by women. OCBC will also host educational workshops and networking opportunities among women entrepreneurs.
Currently, a quarter of OCBC’s clients in Singapore are women entrepreneurs who own small or medium-sized businesses. Although the program is geared towards assisting women-owned businesses, Goh mentions that the bank does not have a specific numerical target established. Nevertheless, he expresses confidence that the percentage of women-owned businesses will increase, aligning with the current trend.
On the other hand, Goh acknowledges the possibility of encountering resistance from some people who may not directly benefit from the program. Despite acknowledging the existing female empowerment in the country, Goh highlights the statistical reality that women still make up a smaller share of the overall economy. He notes that even if women make up 30% of the economy, the presence of men is almost three times greater, highlighting the need for initiatives to further support and promote women in business to address this disparity.
Most of the bank’s clients start their businesses with their minds outside of Singapore, Goh said. Thus, the program aims to help women entrepreneurs expand their businesses internationally. The program aims to provide opportunities and support to women entrepreneurs who address the challenges they face as they expand beyond Singapore.
