Loan underwriting through UBX’s online platform will increase

UBX Philippines Corp. expects a fourfold increase in loans processed through its online lending platform this year as the lender expects the partnerships to materialize.

Marcy Pilar-Inajada, UBX’s managing director for loans, said their optimism stemmed from the platform’s “remarkable” growth in 2021, when it processed more than 6 billion pesos in loans from more than 40,000 micro, small and medium-sized enterprises (MSMEs).

This year, said Pilar-Inajada, the fintech subsidiary of UnionBank of the Philippines Inc. aims to process around 33.5 billion pesos in loans, 6 times more than last year’s volume.

Pilar-Inajada told BusinessMirror that they have developed the platform called “SeekCap” to reach MSMEs “who traditionally do not have access to finance to grow their businesses due to the high demands of corporate banking.”

“We believe that by democratizing access to loans, we will be able to help more growing businesses expand their businesses and contribute to the recovery of the global economy this year,” she said. declared.

Pilar-Inajada said SeekCap is capitalizing on its partners’ large user base to offer business loans.

Also this year, UBX plans to connect the platform with other MSME ecosystems, as well as e-commerce, franchise and wholesale players to further expand its reach.

“The opportunity for SeekCap is huge given that 99.51% of all businesses in the Philippines are MSMEs,” Inajada told BusinessMirror. “Our goal is to reach 100,000 new customers this year, which is about 10% of the total number of growing businesses in the country.”

According to information provided by UBX, the platform “simplifies the processing of business loans”. “Business loans can be processed in 24 hours, which is significantly faster than the 30-day minimum approval time for most banks,” the digital bank said.

UBX also plans to integrate local governments into the platform’s “end-to-end” digital lending ecosystem to encourage their citizens to grow their businesses through financing. According to Pilar-Inajada, UBX has been working on this goal since 2020.

UBX, of note, has linked “SeekCap” with the local government of Pasig to introduce the city’s business loan program. The program brings lenders and borrowers together through the UBX platform, streamlining the process of obtaining a business loan while making financing more accessible to small businesses in the city, according to the UBX executive.

“Our strategy is to activate as many channels as possible,” Pilar-Inajada told BusinessMirror. “With the partnerships with the government, we hope to activate more channels in different cities and provinces, especially in remote areas where the unserved and underserved are found.”