Lender seeks partners to reach OFWs, MSMEs

By Cai U. Ordinario @caiordinario

CIMB Bank Philippines Inc.

is looking for more partners to offer embedded banking services to reach more Overseas Filipino Workers (OFWs) and micro-, small- and medium-sized enterprises (MSMEs).

The bank said embedded banking aims to integrate banking services seamlessly into platforms and ecosystems. It also empowers non-banking entities to monetize their market base by providing payments, savings, and lending services which stand to benefit digital savvy Filipino consumers.

“(We) will soon be unveiling more embedded banking partners and unique product features in the future. This will help grant easier access to the commonly underserved population such as the overseas Filipino, and the micro and small to medium entrepreneurs, enabling them to live their purpose just as deservedly as everybody else,” CIMB Bank Philippines said.

CIMB Bank Philippines’s Chief Growth Officer Suraj Ramchandani said the bank pioneered the ecosystem play. One example of their partners is GCash operator GXchange Inc.

This partnership is seen through the “CIMB GSave,” a savings product that provides a high savings rate.

Ramchandani added that with GCredit, CIMB manages the portfolio while GCash provides the platform through which the product is served. These, he said, result in Filipinos “being empowered with a digital revolving credit line they can use across various merchants and payment needs.”

“As more and more services digitize, service providers will need to embed finance and banking capabilities in their ecosystems and platforms. We play the role in bringing the bank to the consumer where they perform their daily activities,” Ramchandani said.

Embedded banking refers to the integration of banking services within non-banking platforms, such as e-commerce websites, social media apps, or super apps.

By embedding financial capabilities into these platforms, customers gain convenient access to a wide range of banking services without the need for multiple applications or interfaces. The bank is embedded on the touchpoints where the customers are.

A good example of this is the GCredit feature in mobile wallet GCash, or the SPayLater facility in ecommerce platform operator Shopee Southeast Asia Ltd.—both of which CIMB underwrites.

One benefit of embedded banking is the potential for enhanced financial inclusion. By collaborating with service providers, banks are able to extend their services to a wider customer base.

This includes previously underserved segments who may historically not have had access to banking products due to multiple know your customer (KYC) requirements from traditional banks.

This approach democratizes access to financial products and services, enabling individuals who previously had limited banking options to benefit from a broader range of offerings.