UBX Philippines Corp., a fintech company, has recently partnered with Aboitiz Data Innovation Pte. Ltd. (ADI), based in Singapore, to create advanced artificial intelligence (AI) technology for UBX's lending platform.
Under the agreement, ADI will supply UBX with cutting-edge AI solutions designed to enhance the credit scoring functionality of the platform. This will significantly bolster the platform's ability to facilitate business financing for micro, small, and medium enterprises (MSMEs).
On the occasion of signing the agreement, UBX President John Januszczak expressed his enthusiasm for the collaboration, stating, "By harnessing their AI expertise, we aim to revolutionize credit risk assessment for unbanked and underbanked individuals in the Philippines, particularly focusing on the vital MSME sector. While there has been considerable progress in digitally-based lending for consumers, we recognize the significant untapped potential in serving the MSME segment, which has long been neglected."
ADI employs alternative data sources to facilitate the assessment of borrowers' credit scores. This innovative approach not only expedites the loan application process but also enables borrowers to access loans at more favorable interest rates, thus enhancing their overall borrowing experience.
UBX's lending platform, known as 'SeekCap,' will leverage ADI's credit scoring platform to access borrowers' credit scores securely and in compliance with data privacy regulations. These credit scores can then be shared with SeekCap's partner lenders, ensuring transparency and adherence to legal requirements governing data privacy.
In line with the principles of open finance, UBX President John Januszczak highlighted the significance of borrower consent in the data-sharing process, stating, "With your consent, the credit score information can be shared with other lenders. Connecting borrowers with lenders is a crucial aspect, but the fundamental principle underlying open finance is that the ownership of data rests with the consumer, rather than the institution that collects or holds it." This emphasizes the importance of empowering consumers and ensuring their control over their own data.
SeekCap has gained recognition as the Philippines' pioneering digital lending marketplace offering same-day approval. In 2022, the platform successfully processed over P14 billion in business loans, catering to the needs of over 65,000 MSMEs. These impressive figures, as reported by UBX, demonstrate SeekCap's significant impact and contribution to the financing landscape for small and medium enterprises in the Philippines.
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