Small Business Corp. (SB Corp.), an affiliate of the Ministry of Trade and Industry (DTI), has used 32,823 cases from the Covid-19 Assistance to restart Enterprises (Cares) program using fully digitized loan applications. Said that he approved the loan application. system.
In a statement, SB Corp. stated that these were 5.1 billion pesos out of 8.08 billion pesos available to micro, small and medium-sized enterprises (MSMEs), tourism businesses, cooperatives, hospitals, and returnees or displaced persons abroad. He said it was equivalent to a peso. Covid-19 Filipino workers (OFW) affected by the pandemic.
Cares is an interest-free and unsecured funding program aimed at helping MSME recover from the negative effects of a pandemic.
The borrower’s MSME only has to pay a one-time service fee set at up to 8% for a four-year loan period.
SB Corp. fully digitized the lending process shortly after the blockade last year.
SB Corp. Evelyn Felias, head of the Information Technology Group, said he planned to digitize financial services as early as 2019 and was able to implement it when the blockade began.
The digital process begins with the registration of potential borrowers, the submission and approval of document requirements, to the release of a loan.
In a previous forum, Trade Secretary Ramon Lopez said that as of September last year, about 73% of Filipino SMEs needed capacity building initiatives or support in the digitization of their businesses.
The DTI conducted a survey and noted that the Philippines is lagging behind its neighbors in the Association of Southeast Asian Nations (Asean) and is adapting digital transformation to its business.
The Philippines said it is at “level zero” or “sub-basic level” in the ASEAN category of business digitization.
ASEAN SMEs fall into the basic categories when using email and mobile devices in their businesses. The intermediate category is when you start selling online, while the advanced category uses data analytics in your business.
Jean Pacheco, Deputy Secretary of State for the DTI E-Commerce Program Office, said in light of statistics that the E-Commerce Roadmap gives MSME the ability to rebuild by providing national and international services to MSME. He said he is working on innovation and implementation of programs based on 2022. Market access, digitization, logistics integration.
“23% [our] Respondents have mobile phones, but only use them for personal use, not for business. That’s what we’re trying to do at DTI. In the process of digital transformation, we need to identify what level or category they belong to so that we can provide the right interventions for a particular MSME, “said Pacheco.
Pacheco quoted a 2021 digital report showing that 80% of Internet users bought something online, saying that business digitization, especially e-commerce adoption, is expected to accelerate. ..