Unlocking a Digital Future for MSMEs with UnionBank’s Supply Chain Finance

As the local economy opens up, businesses including micro, small and medium enterprises (MSMEs) are also enroute to recovery. Following the disruptions brought about by the pandemic, UnionBank digitally transformed and strengthened its Supply Chain Finance (SCF) solution platform to mitigate the losses of these businesses and simplify operations and financial management across their supply chain ecosystems.

“This platform contributes effectively to sales for cash management, deposits, SME loans, and business banking enrollment,” said Mon Duarte, EVP and Head of Transaction Banking and Platform Development for UnionBank. “With SCF, the bank is introduced to an effective wholesale lending strategy packaged with a retail account and online app banking enrollment.”

Among those that benefited from the platform are MSMEs in the agriculture sector. It allowed Pilmico, a company engaged in the farms business and animal feeds segment, to make collections conveniently and risk-free. This eliminates the need for Pilmico to verify customer direct deposits and request for payment invoice application details.

“We are very satisfied with UnionBank’s SCF and its impact on our business,” said Lilibeth Sisican, AVP for Credit Management, Pilmico. “We aim to convert all our accounts via SCF purchasing power.”

Another was New Hope, a business under the Animal Food Manufacturing Industry, which conquered its fear of change and of digital transformation. They saw the platform as a way to mitigate further risks and grow their business during a difficult time.

“We experienced many benefits with UnionBank’s SCF as our platform,” said New Hope’s Linjun Xiao, General Manager in the Philippines. “There was a faster transition from ordering of goods to payments, and quick expansion of business and better cash flow for both anchors and sellers. There was also the digitizing of the Agri-segment and catering to their needs.”

Duarte added that this digital revolution enabled Pilmico and New Hope to process invoices in minutes compared to manual processes that take up to months. “Now that the economy is opening up again, they need to quickly meet their operational needs while ensuring that their digital pivot remains fully optimized.”

With the many benefits of its SCF platform, UnionBank is indeed the bank that companies and enterprises such as Pilmico and New Hope, suppliers, and distributors can trust to help ensure they are future-ready in this evolving business environment. For more information about UnionBank’s Supply Chain Finance platform, you may visit www.unionbankph.com/corporate/supply-chain-financing.