SeekCap plans to process P33.5B in MSME lending

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The ABOITIZ-LED loan market SeekCap seeks to process 33.5 billion pesos of credit this year to extend more financing to small businesses, it said in a statement.

“Our goal is to reach 100,000 new customers this year, or about 10% of the total growing businesses in the country,” said Marcy Pilar-Inajada, UBX’s managing director for loans. UBX is the fintech venture capital studio and fund of UnionBank of the Philippines, Inc.

Last year, the platform was able to process 6 billion pesos in loans, four times more than in 2020. These funds went to more than 40,000 micro, small and medium enterprises (MSMEs).

SeekCap said it will continue to seek partnerships with more MSME ecosystems and players in the e-commerce, franchise and wholesale industries to expand its reach.

Its current partners include Lazada Philippines and foodpanda. Last year, it also signed a partnership with Maxicare HealthCare Corp., allowing Maxicare MSME users to avail credits ranging from 50,000 to 1 million pesos.

SeekCap has also partnered with the local government of Pasig for the city’s business loan program.

“Our strategy is to activate as many channels as possible. Through partnerships with the government, we hope to activate more channels in different cities and provinces, especially in remote areas where the unserved and underserved are found,” Ms. Pilar-Inajada said.

MSMEs represent around 99.5% of the total registered businesses in the Philippines and are among the most affected by the pandemic.

UnionBank, the parent company of SeekCap, posted a net profit of 12.6 billion pesos in 2021, up 9% from the previous year. This was due to improved revenues and lower provisions for loan losses.

The bank’s shares closed at 99.60 pesos apiece on Tuesday, down 40 centavos or 0.40% from its previous finish. — Noble LWT

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