Partnership is the latest example of cooperation between the two leaders in embedded finance and open finance in the Philippines.
Netbank and UBX have officially joined forces, cementing an agreement aimed at providing loans to sellers operating within the dynamic landscape of e-commerce platforms. The partnership has already commenced the issuance of these much-needed loans, with Netbank envisioning a swift and expansive surge in its lending activities catering to e-commerce sellers in the coming year.
Many enterprising sellers on e-commerce platforms are often in need of additional working capital to fuel the expansion of their sales. However, the traditional lending landscape has posed challenges, as few banks are inclined to collaborate with these sellers due to the absence of tangible collateral.
Through a strategic collaboration with UBX’s innovative lending platform, SeekCap, Netbank gains access to an invaluable stream of intricate data about these sellers. This data becomes the bedrock of Netbank’s meticulous underwriting process, encompassing critical details such as sales records and performance metrics from their presence on e-commerce platforms. Notably, leveraging its proficiency in virtual accounts and payment solutions, Netbank has ingeniously designed these loans to be ‘self-liquidating,’ thereby considerably mitigating credit risk. This pioneering approach enables Netbank to extend loans to e-commerce sellers at notably reduced costs compared to other lenders.
Gus Poston, Co-founder of Netbank, shared his enthusiasm about the collaboration, stating, “We are thrilled to expand our collaboration with UBX into the realm of loans, with a special focus on companies driving the new economy. E-commerce platforms have emerged as a transformative avenue for numerous small and micro enterprises across the nation, and we take pride in being instrumental in fostering their growth.”
This strategic synergy between Netbank and UBX marks the latest in a series of successful partnerships. Netbank has already been diligently offering an array of payment and account services to UBX, which has substantially accelerated the proliferation of open/embedded finance within the Philippines. This concerted effort aligns with Netbank’s overarching mission of facilitating top-tier financial services to the individuals and enterprises spearheading growth in the country.
Mario Jordan Fetalino, UBX Business Lead for Lending, highlighted the significance of this collaboration, underscoring the importance of inclusivity and innovation in the financing landscape: “Micro, Small, and Medium Enterprises (MSMEs) form a significant segment of businesses in the Philippines, yet a substantial portion remains underserved. The advent of cutting-edge technology and pioneering methodologies has propelled SeekCap’s strides in promoting inclusive financing. Our partnership with Netbank to serve e-commerce sellers marks a pivotal step in our commitment to render safe, secure, and affordable financing more accessible. We eagerly anticipate the positive impact.”
With an eye toward the future, Netbank is poised to expand its lending initiatives to encompass a myriad of other platforms. This forms an integral facet of Netbank’s comprehensive endeavor to provide an all-encompassing suite of financial services tailored to the burgeoning Filipino economy.
