GoBear and UnionBank launch new lending service in the Philippines

UnionBank and GoBear have launched a lending-as-a-service partnership in the Philippines.

GoBear plans to become a “full-fledged” financial services platform

Through the collaboration, GoBear and UnionBank will offer ecommerce loans on online store Lazada Philippines.

Customers can activate the instalment-based loans through GoBear’s eShopaLoan product, available on the firm’s mobile app pera247.

Singapore-based GoBear is a comparison site for insurance, credit cards, and loans. Founded in 2014, the firm has raised $97 million over two large venture rounds.

In May it acquired local fintech AsiaKredit, which offers consumer lending products, to tap into the lending market.

It raised $17 million later month to fuel what the firm has called a transformation into a “full-fledged financial services platform”.

The company also claims to have thrived during the coronavirus pandemic, with its digital insurance brokerage business experiencing a 52{fde03d2f1c3ee029f0b86461a3e50e9d647f04138057fbe6f119870871f02d29} increase in average order value in the first three months of 2020.

UnionBank’s role in the partnership focuses on the lending process. The bank ensures regulatory checks and verifications via pera247.

“GoBear and UnionBank share a common ambition: to make new inroads in providing responsible financial services offerings that are more accessible to underserved consumers,” says Mike Singh, chief lending officer at the firm.

“This deal will be game changing. We are bringing together sophisticated data-driven underwriting and a servicing capability with real financial scale to the market.”

UnionBank digital product business head, Harvey Libarnes, says the partnership brings together “the best of both worlds”.

He adds: “You have fintechs’ behavioural scoring combined with the bank’s stability and traditional checks. This will allow us to offer even lower rates to consumers.”

Related: Singapore payments fintech Nium lands investment from Visa

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