Digital banking pioneer Union Bank of the Philippines’ (UnionBank) fintech subsidiary UBX has partnered with One Connect Financial Technology — a member of China’s insurance giant and Fortune Top 29 Company Ping An Group — to co-create its first blockchain-enabled digital platform and suite of solutions for micro, small and medium enterprises (MSME).

MSME make up 99.5 percent of the total establishments in the Philippines and contribute 62.9 percent of employment, according to statistics from the trade department. However, the Bangko Sentral ng Pilipinas (BSP) said one of the biggest challenges these MSME face is not knowing where they can access financial products suitable for their business. On the other hand, financial institutions are unable to appropriately gauge the capacity of borrowers due to lack of former credit histories and reliable financial statements.

Recognizing the huge economic potential of MSME, UnionBank and OneConnect seek to empower this sector.

Tapping each others’ expertise — OneConnect’s proven technology solutions and UnionBank’s deep market knowledge and domain expertise in catering to SME, both companies are determined to co-create impactful financial solutions for small and medium-sized businesses in the Philippines.

Financial institutions are unable to appropriately gauge the capacity of borrowers due to lack of former credit histories and reliable financial statements.

“We are honored to have OneConnect — known for its expertise in SME financial services platforms and AI enabled credit scoring — as our partner in bringing solutions to the needs of our MSME,” said UBX president and CEO John Januszczak. “Based on recent statistics from our central bank, only about 6 percent of total loans in the banking system are invested in MSME. Our goal is to give these MSME the chance to grow their business and succeed.”

UnionBank is confident that through its partnership with OneConnect, a leading fintech SaaS provider of advanced technology-enabled business solutions based on world-class technologies including AI, blockchain, cloud platform, and biometrics identification to small and medium-sized financial institutions, MSME will have greater access to resources that would address their restraints on capital and other funding sources among others.