Bizbaz & RCBC Partner to Bank Philippines' Unbanked, Boost MSME Loans
Singapore-based fintech company Bizbaz has partnered with PNC Bank, a national retail bank in the Philippines, to tackle the high number of unbanked and underbanked individuals. Bizbaz's AI-driven tool aims to broaden access to loans, especially for micro, small, and medium enterprises (MSMEs), while reducing non-performing loans (NPLs).
Currently, 78% of the bankable population in the Philippines remains unbanked or underbanked. Bizbaz's tool, which creates risk profiles using various data points including financials, health, lifestyle, and social footprints, along with personality-based and voice-based risk assessments, can help address this issue. PNC Bank, led by President and CEO Eugene Sering Acevedo, will pilot this tool to maximize AI's potential and unlock opportunities for MSMEs.
Bizbaz has already seen success with its clients. Revenue has increased two to three times, with customer acquisition costs reduced by up to 40% and bad debt defaults by up to 50%. The tool enables faster credit scoring, reducing loan approval wait times and mitigating bank default risks. US Bank in Indonesia is one of Bizbaz's satisfied customers.
As the World Bank projects the NPL ratio in Southeast Asia to increase from 5.7% in 2022 to 5.9% in 2023, surpassing the global average of 4.2%, PNC Bank's partnership with Bizbaz comes at a crucial time. By leveraging Bizbaz's tool, PNC Bank can broaden access to loans, reduce NPLs, and support the growth of MSMEs in the Philippines.
