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UnionBank of the Philippines (UnionBank) has tapped a multi-channel, telco- and bank-agnostic platform to boost retail loan growth.
Salary, personal, automotive, housing, and other customer loan availments will soon be within reach through mobile devices as UnionBank and Voyager Innovations, Inc. (Voyager) collaborated to offer the bank’s retail loans portfolio through Lendr.
Lendr is a fully digital, multi-channel, telco- and bank-agnostic platform that financial institutions and credit providers can use to reach consumers planning to avail themselves of loans through a single online “marketplace.”
“In the fast-growing digital economy, innovation is the name of the game, and we are glad that UnionBank is seeing the vast opportunity for growth through digital lending with the help of Lendr,” Manuel V. Pangilinan, Voyager chairman, said.
Voyager is the digital innovations arm of Philippines Long Distance Telephone Co. (PLDT) and Smart Telecom.
“We are excited to work hand in hand to bring the best of Voyager’s FinTech innovations and UnionBank’s robust lending portfolio together for the benefit of Filipino consumers nationwide,” Pangilinan added.
Through Lendr, UnionBank expects to boost its retail loans portfolio and further extend its margins in consumer lending.
“Technology, innovation and partnering have always been at the heart of UnionBank’s DNA,” Justo A. Ortiz, UnionBank chairman and chief executive said.
“Banks need to compete with FinTechs but also need to collaborate with FinTechs, think and act like a FinTech and even transform into a FinTech in order to make a difference for our customers and other stakeholders,” he added.
Considered a “blue ocean” opportunity for the banking sector, digital lending through online loans marketplaces like Lendr is fast becoming a priority as banks look for new opportunities.
In an increasingly digital and mobile-driven banking landscape, partnership with financial technology or “FinTech” innovations is the key to successfully transitioning to digital banking.
Through Lendr, UnionBank will be able to reach untapped markets without having to set aside huge capital outlays or undergo mergers and acquisitions.
Customers will now be able to see and sign up for the bank’s various loan offerings via SMS, the mobile app, and online with the help ofLendr.
“We are excited to be working with Voyager, one of the best FinTechs in town. Collaborating with FinTechs is a key pillar of Unionbank’s digital transformation strategy,”said Unionbank President and COO Edwin R. Bautista.
Lendr is expected to change the landscape for consumer loan lending not only in the Philippines but also in key growth and emerging markets through this marketplace approach.
According to the Bangko Sentral ng Pilipinas, consumer lending has grown 20 percent year-on-year to reach P959.2 billion in the second quarter of 2015.
“We expect more bank and financial institution partners to come on board for Lendr as we get ready to offer the service to consumers this year. Lendr is making consumer lending ‘always-on’ and ‘always-connected,” concluded Villanueva.
