DigiCOOP Taps ADVANCE.AI for Risk Management in Cooperatives

DigiCOOP joins forces with ADVANCE.AI to enhance digital and financial services for 1.3 million cooperatives and credit unions in the country.

DigiCOOP Taps ADVANCE.AI for Risk Management in Cooperatives

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Editing by Nathaniel Cajuday

  • DigiCOOP and ADVANCE.AI have collaborated to enhance digital and financial services for digiCOOP’s user base of 1.3 million cooperatives and credit unions in the Philippines.
  • The partnership aims to facilitate seamless customer onboarding, mitigate fraud risks, and provide inclusive access to financial products and services.
  • ADVANCE.AI will offer fraud and risk management solutions to protect DigiCOOP and its users, while DigiCOOP’s goal is to increase financial inclusion and reduce systemic inefficiencies.

To provide more digital and financial services to their users, digiCOOP has partnered with Singaporean tech startup ADVANCE.AI, the technology service provider for cooperatives announced. 

The collaboration is expected to benefit digiCOOP’s user base of 1.3 million cooperatives and credit unions in the Philippines

The DigiCOOP and ADVANCE.AI Collaboration

In a statement, the entities involve disclosed that the integration of ADVANCE.AI’s AI solutions is set to enhance DigiCOOP’s digital and financial services by facilitating seamless customer onboarding, mitigating fraud risks, and enabling inclusive access to financial products and services for a wider user base.

According to Ann Cuisia, the founder of digiCOOP, the platform’s goal is to reduce systemic inefficiency and lack of financial inclusion by increasing the 20% banked Filipino families to at least 50% within five years. 

“Our partnership with ADVANCE.AI and their expertise in digitally onboarding customers through seamless and secure digital identity verification supports our vision of enabling unbanked and underserved Filipino segments of society to build their own wealth, participate in a lively digital and financial ecosystem and pass on the coop legacy to the next tech-adept generation,” Cuisia, who is also a Blockchain Champion awardee during the Philippine Block Awards 2022, explained. 

Consequently, ADVANCE.AI stressed that by implementing its fraud and risk management solutions, which will help protect DigiCOOP and its users from potential fraudulent activities, the technology service provider for cooperatives can ensure the security and integrity of its digital and financial services.

Meanwhile, for Michael Calma, the country manager for the Philippines of ADVANCE.AI, the trust and confidence in utilizing digital technology is an important part for the economic advancement of grassroots and union workers.

“Economic advancement for the grassroots and union workers can only happen by increasing trust and confidence in the use of digital technology… Nowadays, the traditional customer onboarding process is simple, secure and can be completed entirely on their mobile phone. All they need to join the digiCOOP platform is a national identity document and an internet connection,” Calma stated. 

According to the country manager, ADVANCE.AI is specifically helping Digicoop with the eKYC (electronic Know-Your-Customer) of their members. 

“This is important because (1) this will be their gateway into accessing e-banking services, and (2) It will help in the mandate of the Cooperative Development Authority (CDA) in identifying all cooperative members,” he added, noting that eKYC will implement further transparency when distributing aid to its members. 

What is digiCOOP?

Since its launch in 2020, DigiCOOP brings together cooperatives through technology; currently, it already has 12 federations and 100+ cooperatives on its digital platform. 

Its services include credit scoring, digital banking, insurance, investments, bill payments, and e-learning. DigiCOOP also offers convenience, security, and cost-effectiveness compared to traditional services.

During the first-ever Digital Cooperative Summit held as part of the Philippine FinTech Festival, Cuisia emphasized the need for faster digital adoption within the cooperative movement. 

She even highlighted the potential of technology to empower cooperatives, allowing them to exchange services and maximize revenue through smart technology and digital assets. 

In December 2022 during the C-TECH Summit, COOPNET, the first QR code-enabled teller machine in the Philippines, was unveiled by digiCOOP. Its purpose is to establish a connection between cooperatives, rural banks, traditional banks, e-wallets, and remittance centers. COOPNET operates on the national QR code standard, QRPh, regulated by the Bangko Sentral ng Pilipinas, utilizing QR codes for seamless transactions. (Read more: digiCOOP Launches COOPNET–PH’s first QR Code-Enabled Machine)

What is Advance.AI?

ADVANCE.AI, headquartered in Singapore, is a leading provider of digital identity verification, KYC/AML, compliance, and risk management solutions in Southeast Asia. 

According to the platform, they currently have over 700 enterprise clients across various sectors such as banking, financial services, fintech, payment, retail, and e-commerce.

This article is published on BitPinas: KYC sa Coop? DigiCOOP Taps ADVANCE.AI for Risk Management Solutions

Disclaimer: BitPinas articles and its external content are not financial advice. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond.

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