Aboitiz-owned Union Bank of the Philippines (UnionBank) and Aboitiz Data Innovation (ADI) has partnered with LBC Express Inc. to improve access of small businesses to bank financing.
The tripartite agreement was forged during the first AI Summit in the Philippines or AI Summit PH 2023, a two-day event hosted by UnionBank and the Aboitiz group.
The agreement basically will enable LBC clients to avail of small business financing from UnionBank.
LBC Chief Financial Officer, Enrique V. Rey Jr., said that they have seen the growth of “social selling” which has a requirement for financing. The deal with UnionBank and ADI, he said, is a “one-of-a-kind opportunity to obtain funding to help advance their businesses."
Through ADI’s AI-powered scoring service, interested LBC clients will be subject to an evaluation to qualify for a loan.
“We are optimistic (and) we hope to contribute to this through lending, creating economic activity in digital channels, and assisting small entrepreneurs,” according to UnionBank Executive Vice President, Roberto Abastillas.
Meanwhile, ADI’s Chief Operating Officer for Financial Services, Guy Sheppard, said ADI can assist this collaboration through innovation. He thinks both LBC and UnionBank can harness the capabilities of Data Science and AI to “create solutions that empower more entrepreneurs in the Philippines and beyond."
UnionBank said the partnership will help small and medium enterprises and micro SMEs to overcome the lingering after-effects of the Covid pandemic.
“The situation has been especially difficult for SMEs, which frequently have limited financial resources and may lack the scope and flexibility of larger organizations, as a result of the pandemic. However, small and medium-sized business owners can play a significant role in economic recovery by adapting to a shifting business environment, leveraging technology, and concentrating on innovation and sustainability. SMEs and MSMEs can access funding through this initiative, allowing them to concentrate on expanding other aspects of their businesses,” said UnionBank.