UBX, the technology innovation and investment arm of UnionBank, believes that the future of banking is invisible, embedded into activities and experiences that matter to businesses and consumers. “BigTech” and emerging non-banking technology platforms are likewise achieving scale and client reach that exceeds that of traditional banks.
For UBX it is about building platforms for digitally and financially underserved communities, while aggregating and virtualizing financial services to embed in the platforms of others.
At UnionBank’s 4th E-TalkTales webinar held recently, John Januszczak, President and CEO of UBX, explained how they will change the face of banking by introducing several innovative offerings targeted to serve a variety of markets, both locally and even beyond.
“We want to weave banking into everyday life. promote the value of invisible banking, and what UBX is doing to make it a reality,” explains Januszczak.
One of these offerings, he said, is “SeekCap,” an online credit marketplace for the country’s Micro, Small and Medium Enterprises or MSMEs. “These are companies that drive over 60% of the economy yet have historically received less than 10% of credit provided by banks.” He said powering SeekCap is an embeddable lending platform: a digital end-to-end lending experience wherein it connects multiple lenders to MSMEs through platforms they use every day such as Lazada and accounting systems.
“We believe that there is still a number of MSMEs in the Philippines that are out there, those doing business informally. We hope to be able to reach out to them,” Januszczak added.
Under UBX’s “Build, Buy and Bridge” philosophy, Januszczak said that aside from developing technology, UBX, through its venture capital fund, is actively investing in the innovation of others like “XLog.”
“XLog” is a digital logistics platform and Artificial Intelligence (AI) technology that leverages the vast amounts of data that digital platforms are generating. “UBX bridges gaps in digital capabilities through its technology services team to help businesses integrate embeddable financial services directly into their systems.”
The COVID-19 pandemic was so devastating, Januszczak said, that it drastically changed consumer behavior and how businesses operate. Trying times have led to a golden age for e-commerce in all sectors including MSMEs who depend on social platforms for marketing their products and communicating with their customers.
This is why “BUX” came about, which already has over 80,000 sellers that signed-up. “BUX” is an embeddable payments platform that accepts all methods of payment and integrates into platforms used by MSMEs for selling online: Facebook, Viber, and more comprehensive ecommerce platforms like Prestashop, Woocommerce, and soon Shopify.
UBX even provides its own free ecommerce platform like “Sentro.” With “Sentro,” everyone from casual sellers to mid-tier businesses can create an online web store with built-in inventory management, order tracking, shopping cart, “BUX” for payments, and courier services such as Mr. Speedy. This means MSMEs can start selling online in a matter of minutes!
UBX platforms also have a positive and material impact on financial inclusion, says Januszczak. He pointed to “i2i,” a real-time payments network that connects community-based financial institutions to each other and the national retail payments system. Currently, the Department of Social Welfare and Development (DSWD) is leveraging the reach of i2i to distribute the Social Amelioration Program (SAP) relief. i2i helps institutions go digital with services such as i2i mobile ATM, agency banking, digital credit scoring, and more. While i2i is a blockchain-enabled, real-time payments network leveraging the first Bangko Senral ng Pilipinas (BSP)-approved stablecoin, “it’s really about connecting the nation, whether it be distributing relief, sending funds to loved ones, or making it easier to do business in trying times.”
Finally, Januszczak said “UBX continues to invest in the future such as democratizing real estate through asset tokenization using our “Biddit” platform.” UBX is helping to bring innovation from companies in the UBX venture fund to market. “PDAX,” a UBX investment, recently launched “Bonds.ph,” a blockchain enabled app that allows Filipinos to have unrestricted access to buy treasury bills directly through a mobile app.
“With these innovations, we at UBX believe that we are on the right track in the changing the face of banking.”