To ease the burden of micro, small, and medium enterprises, Union Bank of the Philippines (UnionBank) transformed its Supply Chain Finance (SCF) solution platform to simplify operations and financial management across their supply chain ecosystems.

Among the challenges businesses faced during the pandemic was the difficulty of money collection. Consumers and companies were affected by labor shortages and interrupted supply chains, leaving them unable to settle financial responsibilities.

According to UnionBank, only a small number of MSMEs had access to bank credits.

UnionBank adds new features to MSME banking app
UnionBank develops integrated supply chain financing platform

“This platform contributes effectively to sales for cash management, deposits, SME loans, and business banking enrollment,” said Mon Duarte, EVP and head of Transaction Banking and Platform Development for UnionBank. “With SCF, the bank is introduced to an effective wholesale lending strategy packaged with a retail account and online app banking enrollment.”

The Supply Chain Finance solution platform allowed the UnionBank to lend effectively to MSMEs and to the agriculture industry.

The platform has made collection more convenient and risk-free. To illustrate, when a customer places an order, this order can go directly to their SCF line. This eliminates the need for companies to verify customer direct deposits and request payment invoice application details.

Duarte added that with this digital revolution companies can now process invoices in minutes compared to manual processes that take up to months.