UnionBank issues loans to LBC customers

LBC Express Inc., Aboitiz Data Innovation (ADI) and UnionBank of the Philippines (UnionBank) on Thursday signed an agreement aimed at ensuring financial stability.

The trilateral agreement was signed during the first AI Summit in the Philippines (AI Summit PH 2023). Through this initiative, LBC clients will have access to small business loans and funding programs from UnionBank to help them with their expansion plans.

Enrique W. Rey Jr., chief financial officer of LBC Express, said the company had seen an increase in consumers engaging in “social selling” even before the pandemic.

“Through this partnership with ADI and UnionBank, we hope to provide them with a one-of-a-kind opportunity to receive funding to grow their business.”

According to UnionBank, the agreement will use ADI’s AI-powered scoring service to score LBC customers, allowing UnionBank to “reasonably and confidently” lend to identified customers.

UnionBank supports small and medium enterprises (SMEs) and micro, small and medium enterprises (MSMEs). As part of this initiative, the digital bank said it intends to engage the “small” informal business sector.

Roberto Abastillas, Executive Vice President of UnionBank, Head of Commercial Banking Center: “We are optimistic about joining the country in its economic recovery, and we hope to contribute to this through lending, creating economic activity in digital channels and helping small entrepreneurs.”

UnionBank said the situation has been particularly challenging for SMEs, which often have limited financial resources and may not have the scale and flexibility of larger organizations as a result of the pandemic.

However, SMB owners can play a significant role in economic recovery by adapting to a changing business environment, harnessing technology, and focusing on innovation and sustainability. SMEs and MSMEs can access funding through this initiative, allowing them to focus on expanding other aspects of their business.

“We see that the pandemic has accelerated the transition to digitalization, and many companies are using new technologies and digital platforms to attract customers. SMEs can benefit from this trend by expanding their operations, increasing efficiency and reducing their costs,” said Abastillas.

Guy Sheppard, Chief Operating Officer Financial Services at ADI, said: “Innovation and meaningful collaboration are essential to drive economic development and recovery. We look forward to working with LBC and UnionBank to harness the power of data science and artificial intelligence to create solutions that will empower more entrepreneurs in the Philippines and beyond.”

Image Credits: Photo provided