Philippines-Based BaaS Fintech Netbank Partners With Alternative Lenders So Their Platforms Can Expand Operations


Based in the Philippines Netbank has now partnered with several alternative lenders so that lending platforms can expand their operations without having to acquire additional financing.

Netbank, the leading Southeast Asia-based Banking as a Service (BaaS) platform operating through a banking license, is said to work closely with three major alternative lenders: Global Mobility Services (GMS), New Cross Credit Gate PH Inc. (Loan) and Inclusive Financial Technologies, Inc. (Blend PH).

As stated in a statement shared with Crowdfund Insider, Fintech partners aim to identify customers and pass them on to Netbank, which will finance and account for loans on its balance sheet.

The announcement also mentioned that the arrangement allows alternative lenders “to grow without needing to raise additional funds.” By removing a banking layer, it helps create a “more efficient balance sheet structure that ultimately benefits Filipino borrowers,” the statement noted.

As mentioned in the update, Uploan is an established lender to salaried people residing in the Philippines. It partners with major employers in the country to provide loans as part of a financial wellness program.

The borrower can repay these loans through a “customer payroll deduction, paid directly to Uploan,” the statement noted while adding that there is quite a large demand for these low-cost loans “in the Philippines, because Uploan loans are generally a replacement for the very high cost informal / “money shark” / 5-6 loans that jeopardize the livelihoods of employees and ultimately undermine an employee’s ability to work . ”Uploan originates customers through its digital interface, providing seamless service.

As stated in the announcement, GMS is an innovative FinTech platform provider, offering services that “enable tri-shaws / tricycles (low cost public transport) motorcycle riders in Manila, Cebu and Davao”.

As mentioned in the update, loan repayment is “secured by attaching an immobilizer / tracking device to the motorcycle”. By analyzing vehicle data (driving status, speed, etc.) collected via the device and financial data (payment status, etc.) obtained “in collaboration with Netbank, GMS and Netbank analyzes the solvency of drivers and allows to people who are generally unable to benefit from conventional credit to contract loans and leases.

The release also noted that Blend PH is a P2P online funding platform. It meets the financial needs of consumers across the country. Amid the coronavirus outbreak, where most businesses have been affected, Blend PH continues to offer loans to SMEs “engaging in franchises that help restart the economy.”

As stated in the announcement:

“With Netbank and Blend PH working together to conduct a detailed risk assessment that identifies low risk groups, this has allowed Blend PH to continue lending to this segment amid the COVID-19 pandemic. “

Before introducing these services, Netbank managed to ensure that it “fully understands the risks involved”. For example, Netbank and Blend PH have worked with franchisors and franchisees, “enabling a comprehensive assessment of loan risks and opportunities”.

Mr. Jay Bautista, Managing Director of Inclusive Financial Technologies, Inc., said:

“We are very satisfied with the flexibility and the ease that Netbank offers to its Fintech partners and lenders. With our continued business expansion, we are happy to work with a partner like Netbank. “

Jaymar mendoza, Chief Operating Officer of Netbank, said:

“We see huge opportunities to expand our loan program through alternative lenders in the years to come. We predict that the alternative lending market will grow to $ 1 billion (50 billion pesos) in 2024 and $ 2 billion (100 billion pesos) in 2026. Netbank will be a major contributor to this growth ”.

Netbank management has indicated that it is focusing on “supporting responsible lending and avoiding all forms of usurious interest rate loans.”

Jaymar also mentioned:

“As a bank, we are very aware of our responsibility to all our stakeholders and therefore we will only lend to low risk segments at reasonable interest rates.”

Netbank said it will continue to expand its partnership program with alternative Filipino lenders and “expects to sign several new partners in the coming months.”

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