LBC Express Inc., Aboitiz Data Innovation (ADI), and UnionBank of the Philippines (UnionBank) on Thursday signed an agreement that aims to promote financial sustainability.
The tripartite agreement was signed during the inaugural AI Summit in the Philippines (AI Summit PH 2023). Through the initiative, LBC clients will have access to small business loans and financing programs from UnionBank to help them in their expansion plans.
Enrique V. Rey Jr., CFO of LBC Express, said the company has seen an increase in the number of consumers engaging in “social selling” even before the pandemic.
“Through this partnership with ADI and UnionBank, we look forward to providing them with a one-of-a-kind opportunity to obtain funding to help advance their businesses.”
According to UnionBank, the agreement will harness ADI’s AI-powered scoring service to evaluate LBC customers, enabling UnionBank to “intelligently and confidently” extend loans to identified clients.
UnionBank is supportive of small and medium-sized enterprises (SMEs) and micro, small and medium enterprises (MSMEs). Through this initiative, the digital bank said it intends to tap into the “small” informal businesses sector.
Roberto Abastillas, UnionBank Executive Vice President, Commercial Banking Center Head, “We are optimistic as we join the nation in its economic recovery, and we hope to contribute to this through lending, creating economic activity in digital channels, and assisting small entrepreneurs.”
UnionBank said 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.
“We have seen the pandemic has accelerated the transition to digitalization, with many companies employing new technologies and digital platforms to reach customers. SMEs can benefit from this trend by expanding their reach, enhancing their efficiency, and lowering their expenses,” Abastillas said.
Guy Sheppard, COO for Financial Services at ADI said, “Innovation and meaningful collaboration are essential for driving economic development and recovery. We look forward to working with LBC and UnionBank in harnessing the capabilities of Data Science and AI to create solutions that empower more entrepreneurs in the Philippines and beyond.”
Image credits: Contributed Photo
