How the right digital banking partner can help MSMEs recover amid crisis

How the right digital banking partner can help MSMEs recover amid crisis

Digital & Technology

UnionBank Publication

UnionBank Publication

8 Oct 2020, 13:30 — 6 min read

Months since Metro Manila and other major cities nationwide were eased to General Community Quarantine (GCQ), countless micro, small and medium enterprises (MSMEs) were finally able to reopen. Albeit the need to strictly follow health and safety protocols, the resumption to business was much-awaited and much-needed, as MSMEs were directly impacted and crippled by the global health crisis.

Today, MSMEs must not only continue with their operations, but more importantly, also look into business continuity plans to ensure their survival amid unprecedented times.

The government, apart from its financial support throughout the pandemic, is also pushing for the digitalization of MSMEs, underscoring the importance of technology to sustain business operations.

With this comes the opportunity of shifting to digital banking and the advantage of finding the right partner.

UnionBank aims to support MSMEs both ways.

“The right banking partner is someone who can go beyond traditional banking. In a time of crisis where everything is no longer within reach, and most of the crucial things for business survival is no longer available, MSMEs need a bank partner who can deliver digital platforms, as well as use and maximize technology,” Jaypee Soliman, vice president for the SME segment at UnionBank, told in an interview.

Their global link to growth

True to its commitment, UnionBank has launched UnionBank GlobalLinker, which responds to the needs of MSMEs in pandemic and beyond.

“The needs of the MSME have changed drastically during this pandemic, and it has been such a burden for them to be able to avail of services from banks. Another is being able to access non-banking related services to help them during this crisis,” Soliman said.

The innovative free-to-use digital platform utilizing world-class technology aims to enable MSMEs across the country to grow, even globally. The platform has a network of 300,000 MSMEs in the Philippines, India, Thailand, and other countries where GlobalLinker is present.

Any business owner can sign up in the platform even if they do not have a UnionBank account. They can get free and easy access to the following:

  • Get matched with relevant people and businesses in need of services and offerings.
  • Get exclusive discounts and special offers to keep more money in the pocket.
  • Build an online store for free to establish presence, and sell products and services online.
  • Connect with biz owners that want to learn, grow and thrive together.
  • Attend events and socialize with business owners and customers.
  • Get tips and inspiration from successful entrepreneurs.

With UnionBank GlobalLinker, entrepreneurs can connect with established fintech companies here and abroad that offer financial services or business requirements at an affordable rate.

Also read: Create your own online store on UnionBank GlobalLinker for free

“Being able to launch a platform for MSMEs that is fully digital in all touchpoints, allows faster and easier access to services not just from UnionBank but from key partners and service providers for business growth and operations,” Soliman said.


Solutions for business banking

UnionBank also aims to address specific needs of MSMEs, hence its creation of business banking solutions just for them.

SME Business Banking by UnionBank enables MSME owners to open an account on the same day, right at the comfort and safety of their homes. There’s no need to fill up forms at the bank. They just need to download the app via Google Playstore for Android or via App Store for iOS.

They can select a business bank account that suits their needs best:

  • Business Starter, a low barring account with a maintaining balance of only P5,000, allows MSME owners to manage their funds and accounts through the app and website.
  • Business Check, the ultimate account for businesses with a maintaining balance of P100,000, comes with a checkbook and software that prints checks professionally. It also allows management of funds and accounts through the app and website.

Also read: Introducing Biz Starter: Checking account for MSMEs, exclusively for UnionBank GlobalLinker members

With the SME Business Banking app, MSME owners can also pay bills, manage multiple business accounts, and deposit checks all in a single platform.

Under this feature, MSMEs can also access a financial supply chain among clients, buyers, and suppliers. It offers non-traditional financing and multiple financing options through a single platform.

Lastly, UnionBank has continuously provided SME loans by extending interest payments up to 90 days, with no required monthly principal payments. It also offers microlending thru its financial partners.

“By allowing MSMEs to open a bank account that is purely digital, their business is immediately linked to all kinds of business-related services like cash management, mobile banking, and even borrowing of funds,” Soliman said.

Also read: How to take advantage of short-term loans to jumpstart your business

“For UnionBank, we keep innovating, we keep customizing, for MSMEs to have more power for funding, for account management, for starting relationships, for building larger market potential, and for connection to service providers—all of which for them to survive and grow,” Soliman concluded.

Image source: Freepik

Article Source: Philstar


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