July 18, 2019- UBX, the fintech subsidiary of UnionBank of the Philippines has partnered with OneConnect Financial Technology (of China’s Ping An Group) to create a blockchain-enabled platform for micro, small and medium enterprises.
Operational by the end of 2019, this is an end-to-end platform that will cover various services, including multi-channel loan applications, loan disbursement, credit assessment, etc.
More importantly, it will aid enterprises in supply chain finance via OneConnect’s Blockchain-as-a-service platform. As reported by AsianBankingandFinance.net, “important data including order and logistics information is encrypted while enabling critical functions such as paperless contracts, contract judgment, compliance verification, and financing risk assessment”. All e-payment undertakings are divisible and discountable. Because they are recorded on the blockchain, they are tamper-proof and traceable.
AsianBankingandFinance.net said UBX claims this is the first blockchain-enabled platform targeted to MSMEs.
The digital platform will be operational by the end of 2019 and will be made available to a larger group of MSMEs by 2020. As reported, 99% of all businesses in the Philippines are micro, small, and medium enterprises.
UBX is UnionBank of the Philippines’ fintech arm. This subsidiary will hold the bank’s technology initiatives, platforms, and investments in fintech companies. As a subsidiary, it operates separately from UnionBank and designed to be like a fintech company/startup. The bank is also launching a stablecoin soon.
This article is first published on BitPinas: UnionBank’s Fintech Subsidiary UBX is Building Blockchain-enabled Platform for SMEs