Union Bank of the Philippines (UnionBank), a leading universal bank in Southeast Asia, has signed a partnership agreement with FinScore, an alternative credit scoring company that is powered by telco data and advanced analytics.
UnionBank, which ranked as Asia-Pacific’s second most helpful bank during Covid-19 and the only Philippine bank in the top 20 list, said the partnership aims to promote market efficiencies and expand the access of Filipinos to a broad range of financial services.
“We at UnionBank look forward to a fruitful partnership with FinScore, enabling us to lend to even more Filipinos through digital-first credit scoring solutions.
This is a critical step forward towards our greater purpose to uplift lives and enable inclusive prosperity by extending banking and financial services to the mass market and the unbanked,” said Manuel Santiago Jr., chief mass market and financial inclusion executive of UnionBank, said.
This collaboration is especially important amid the immense demand for digital loans and financing due to the pandemic, he explained.
According to him, this demand has been challenging for digital banks as non-performing loans, or those unpaid at least 30 days past due date, soared and financial institutions in the Philippines were mandated to grant a 60-day grace period on loan payments under the Bayanihan to Recover as One Act.
It also supports FinScore’s mission to work with banks to improve financial inclusion and access to credit for consumers and small businesses left out of the traditional financial system.
‘’The FinScore team is both honored and excited to be working with Union Bank of the Philippines. Working arm in arm with the bank that is known to be the forerunner in banking and financial technology is a huge milestone for FinScore as we pursue our mission to help transform financial institutions of any size across the Philippines,” FinScore country manager Christo Georgiev said.