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Welcome Bank Seals Partnership Deal With BlendPH, It’s ‘All Systems Go’ to Serve Many Pinoys

May 26, 2021

Welcome Bank, a leading player in Korea’s digital banking arena, recently sealed a partnership agreement with Blend.ph, a peer-to-peer (P2P) funding platform owned by Inclusive Financial Technologies. The partnership opens greater possibilities for Filipinos who want reliable financial products and services, and who have long realized the merits of net banking or online banking and P2P transactions.

As one of the subsidiaries of Welcome Financial Group of Korea, Welcome Bank is best placed to help Pinoys preserve or grow their assets, given the group’s banking operations know-how. The common denominator of the partnership bank and Blend.PH is the shared vision-mission of encouraging both consistent saving and responsible borrowing to attain set goals. 

Both companies are looking forward to serve more individual borrowers, and also open up entrepreneurs’ access to alternative financing like peer-to-peer lending. With the collaboration of marketplace lenders with partnership banks, P2P borrowers get a heightened chance of getting their loans approved quickly.

Banks, for their part, are able to secure their customer proposition and leverage a P2P platform’s lower operating cost. Bank revenue, after all, rests on many different factors, and it is typically the bigger universal banks that are able to withstand economic downturns and crises.

Fintech-banks partnership in lending is nothing new. It has been around for ages, and may well continue. Fintech-banks partnerships are at the core  of various innovative fintech products and services.

Blend.ph follows the same underwriting/credit evaluation procedures as banks. The difference is that being a digital platform, customers experience a more convenient way of getting their loan applications processed. No need to visit a physical location of a bank, wait, undergo intense scrutiny, and fill out forms.  P2P’s automated system assures that a suitable deal may possibly be found in a quick span of time.

Inclusive Finance

The melding of fintech and banks in the Philippines a few years back ushered a new way of doing financial transactions that include fund transfers, borrowing and investing. The digital age has shone the spotlight on the new-age bank model that is tech-driven yet customer-oriented.

Fintech banks have been quick on the draw and those who stand out for banking excellence have rolled out products that offer greater convenience to their customers. Universal banks, with their fintech partners, have led the way in carrying out digital transformation initiatives, and thrift banks followed suit.

Riding on the crest of the digital revolution and game-changing  fintech ideas adopted in the country were P2P online platforms.  Any hindrance to obtaining credit may have an immediate impact on business expenditure, expansion moves, and hiring decisions of small business ventures.

Leading P2P lending platforms have eased the situation somewhat, for individuals in need of extra capital at the soonest possible time. For as long as documentary requirements are submitted at the specified timeframe and the criteria set forth are met, a borrower can swiftly get approved for a loan.

Financial inclusion strives to eliminate barriers that exclude people from taking active part in the financial sector and using these fintech services to improve their lives. Financial inclusivity is one of Blend.ph’s goals. This far, it has made strides towards actualizing that goal. 

The tie-up of Blend.ph and Welcome Bank aims to make capital more inclusive for Filipinos. The active collaboration of banks with fintech partners augurs well for customers, since it means wider product array, finetuned processes and saved time for them.  

Fintech and Banks

Through partnership with P2P players with good track record, banks are able to more efficiently zero in and cater to underserved segments of the population. There are, of course, consumers who still prefer traditional bank transaction method over net banking, more so with occasional occurrences like transactions timeout during the payment process.

Then again, when consumers are presented the opportunity for faster response times, an assortment of services, and a simple-to-use digital platform, they become a captive market. The three partnership models normally used when eyeing fintech partners are referral partnership; Assisted Private-Label Partnerships where both  banks and fintech partners are responsible for the customer experience; and Private-Label Partnerships.

During pandemic times, many small businesses and low-wage to average-income individuals have taken stock of their finances, with much help from fintech banks. Many are tracking and estimating just how far their savings would go. Net banking and 24/7 bank facilities  have been very helpful for many people during the Covid-19 pandemic.

In terms of making their money grow, the really determined and enterprising individuals have seriously considered multiple income streams, motivated mainly by the goal to provide for their families. Small entrepreneurs, on the other hand, have asked themselves if their respective businesses are equipped to compete, or to stay afloat amid challenges like Covid-19.

Fortunately, digital platforms like Blend.ph not only offer the general public useful insights through  informative sites but also a hassle-free way to get needed extra cash for emergency needs or funding for start-up ventures in a jiffy.  Borrowers save on flexible interest rates. On the other hand, lenders-investors benefit from consistent compounding style of investing while curbing the risk.

RP at the Center of Tech-driven Innovations

The Philippines has been at the center of tech-driven innovations sweeping Asia.  In fact, for the past several years, the financial services landscape has been continuously evolving. Most industry players have adjusted their business models accordingly, moreso when the threat of Covid-19  first emerged.

FinTech platforms are driving the new business model, especially with community lockdowns. Now that digital has become mainstream, it is fast becoming part of the transformation strategies employed by most firms to move forward. Industry players are using the online model to reach millennials and, on a gradually increasing basis, other market segments too.

As fast as the evolving fintech ideas and innovations are the changing customer requirements. Consumers nowadays demand improved services, seamless experiences, and value for money. The money-savvy ones are carefully choosing the options open to them – and narrowing them down to the most suitable mix of investment strategies or vehicles – in order to best save for their goals.

Map out a plan on how to improve your cash flow and eventually prosper even during tough economic conditions. With its new bank partners, Blend.ph can enable regular salaried individuals – or startup entrepreneurs seeking a franchise loan – to raise the funds they need and navigate challenges in the new normal.

Ask us how to gain access to credit at low, flexible interest rate. Drop us a line at [email protected].  You can also visit our website for a franchise loan to know the requirements.