UBX Philippines helped thousands of MSMEs to recover amid the pandemic through its digital platform SeekCap. It implemented a one-day loan approval and three-day disbursement programme.
UBX Philippines’ SeekCap and Maybank’s SME digital financing were finalists in the evaluation for the award. SeekCap helped improve customer experience by processing SME loan approvals within the day.
Customer: SeekCap processed $40 million in loans to 40,000 MSMEs
Since its launch, SeekCap has registered over 40,000 micro, small, and medium enterprises (MSMEs) and processed over PHP 3.5 billion ($69 million) in loan applications. The approval rate is over 35%, 90% of which are new to the lenders and acquired through the digital platform.
SeekCap helped lenders to reach out to a wider pool of potential customers digitally while controlling the risk that comes with tapping new and underserved markets. It extended loans to MSMEs which were unable to access financing for lack of bank statements and credit history. Meanwhile, Maybank’s SME digital financing platform provided fast financing service to ease the cash flow needs of small businesses.
Digital and Innovation: SeekCap helped shorten MSME loan approval to one day
UBX Philippines introduced SeekCap, a same-day approval loan marketplace for MSMEs. Through SeekCap, multiple banks and lending institutions were able to create and launch loan products. MSMEs can choose the loan product that best suits their business needs. They can apply for loans digitally and seamlessly on a single platform.
Loans are approved on the same day and disbursed within three working days, unlike in the past which normally took 30 to 90 days. The platform utilises advanced risk and anti-fraud technologies. It has integrated application programming interface (API) technology to connect the MSME business ecosystems. It has brought channel partners to widen the distribution, reduce acquisition costs, and provide validated and alternative data to support fraud and credit risk control.
Maybank also used machine learning capabilities for SMEs with the full straight-through process from applications to approval and disbursement. The bank also focused on digital innovation to adapt to behaviour of customers who prefer to use online platforms amid pandemic.
COVID Impact and Initiative: UBX partnered with online platforms
Many MSMEs were forced to shut down their operations due to quarantine restrictions. Access to capital was also hard as it required the submission of documents at the branch.
UBX partnered with different lenders and online platforms to digitise customer experience and introduce innovations to the lending business. It partnered with Lazada to offer business loans to over 50,000 merchants. It also leveraged e-commerce platforms to help businesses stay afloat amid pandemic.
Through SeekCap, individual online sellers who traditionally would not qualify for a business loan due to lack of credit history and collateral were able to get loans of up to $20,000.
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You may visit the Excellence in Retail Financial Services page at http://awards.asianbankerforums.com/retailfinancial/.
For further information, you may get in touch with:
Mobasher Zein Kazmi
Head of Research
Tel: (+61) 452 514 145