Netbank Investree partners in SME lending in the Philippines

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Netbank, a Banking as a Service platform, and Investree, a leading SME lender in Indonesia, have announced a partnership to expand SME lending in the Philippines.

This partnership enables Investree to accelerate its growth and thus serve a large portion of the underserved SME market.

Lending to SMEs is very underdeveloped in the Philippines. Loans to SMEs as a percentage of GDP are approximately 3%, compared with 37% in Thailand and other countries in the region. As a result, small and medium-sized enterprises find it difficult to grow, which slows down job creation and economic development. Unlocking the potential of SMEs will enable them to quickly expand their influence.

Investree and Netbank are collaborating to expand lending in this critical sector. Providing account opening services will enable Investree clients to fund their trade receivables, giving them vital cash to accelerate their growth. This service is a good example of Netbank’s partner business model.

“We are excited about the opportunity to work with Investree,” said Jaimar Mendoza, head of operations and co-founder of Netbank. “The SME lending market is a huge opportunity and we believe this partnership can expand rapidly. We look forward to Investree’s support as they bring more innovation to the market. “

Kok-Chuan Lim, CEO of Investree Philippines, adds: “Netbank provides an important banking-as-a-service service to enhance our customer experience. This allows us to further digitize our offerings and better manage credit risk for our investors. Investree is partnering with regional digital banks to channel funds to MSMEs. ”

This partnership illustrates the opportunities that digital lenders have in the Philippines. The market is very tech-savvy and ready to use electronic banking services. “The partnership between a regulated bank and an alternative lender is very powerful,” Jaimar added. “Banks bring balance management expertise and processes, alternative lenders bring deep insight into their clients. We look forward to working with many other similar companies. “

Netbank is the first banking platform as a service platform in Southeast Asia. It provides banking services on a fully labeled basis so that Filipino fintech companies grow rapidly and cut their costs, thereby accelerating access to financial services and innovation. It provides simple, creative and low-cost solutions for fintechs to open accounts, offer loans and manage payments.

Investree Philippines is a financial technology-based joint venture between Filinvest Development Corp. (FDC), led by Gotianun, and Investree Singapore, which has received approval from the Philippine Securities and Exchange Commission (SEC) to operate the first licensed crowdfunding platform for SME finance in the country. This is the first issue for any company since the SEC issued its implementation rules and regulations in 2019. Investree Philippines aims to address the $ 200+ billion in loans for MSMEs in the Philippines by linking SMEs with institutional investors through its platform.

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