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Thursday, March 28, 2024

UBX’s online platform loaned P1.5B to MSMEs

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UBX Philippines Corp. said it has extended over P1.5-billion worth of business loans through its online lending platform “SeekCap” since 2019.

UBX, the financial technology (fintech) arm of Union Bank of the Philippines, added the platform has over 38,000 micro, small and medium enterprises (MSMEs) registered on the digital channel.

“With [the platform], applying for a loan is entirely digital,” the company said. “Its capacity and capability to help lenders digitize and automate their lending processes shortens processing time and lowers lending costs.”

UBX said that eliminating submission of physical documents and personal appearance at the bank allowed for loans to be approved the same day of the application.

The digital lending technology of UBX allows its partner lenders to offer business loans of up to P20 million with interest rates as low as 2 percent. Entrepreneurs may apply for loans to finance their inventory, equipment, payroll, marketing, receivables, and similar activities, the fintech player said.

UBX said it connected the platform to Lazada, FoodPanda, Sprout HR & Payroll Solutions, AlliancePOS, Taxumo and Moneygment.

Parent firm UnionBank saw its net earnings drop by 17 percent to P11.6 billion last year from P14 billion in 2019 due to significant increase in its credit loss reserves. Credit loss buffer grew by over four times to P8.7 billion last year.

Still, the listed bank registered all-time high revenues of P42.1 billion last year, thanks to 29-percent growth in net interest income supported by higher margins.

Total assets stood at P774.5 billion as of end-December 2020. Common equity tier 1 ratio and capital adequacy ratio were at 15 percent and 17 percent, respectively, in the same period.

This year, UnionBank Treasurer Jose Emmanuel U. Hilado earlier said the bank is “cautiously optimistic” with the developments in the economy, giving “strong focus on balance sheet management and credit underwriting.”

Read full article on BusinessMirror

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