All-digital CIMB Bank Philippines has partnered with on-demand logistics provider Lalamove Philippines to boost the financial inclusion efforts of the Bangko Sentral ng Pilipinas (BSP).
Vijay Manoharan, chief executive officer at CIMB said the digital bank remains true to its core purpose and mission of disrupting the digital banking landscape and expanding digital financial inclusion in the Philippines.
“We are all about consistently innovating to provide meaningful digital financial solutions that address a real need and solve pain points for Filipinos, especially those who are in the informal economy, where access to credit is just so difficult,” Manoharan said.
Through the partnership, qualified Lalamove partner drivers can get a revolving credit line of up to P250,000 through CIMB’s new digital offering called REVI Credit that can be converted into cash or a term loan, used to pay bills, and shop online through a virtual debit card, at low interest rates soon.
This unique collaboration will enable Lalamove partner drivers to get easy access to credit for their day-to-day needs and emergencies.
“Partnering with Lalamove is a step toward this direction. We want to help hardworking Filipinos, like Lalamove’s partner drivers, have easier access to credit to be able to better fulfill their needs, get ahead, and earn more for themselves and their families. We are able to do so through an innovative solution in the form of REVI Credit – which is also CIMB’s Buy Now Pay Later Product,” Manoharan said.
REVI also lets Lalamove partner drivers to withdraw cash from their credit line to their CIMB Bank savings account. In addition, they can convert up to 70 percent of their credit limit into a term loan, which they can pay at flexible terms and low interest rates.
As an added benefit, the partnership also entails CIMB Bank Philippines providing for free to the qualified Lalamove partner drivers a personal accident insurance of up to P50, 000.
Lalamove managing director Dannah Majarocon said a lot of partner drivers often need emergency cash, usually for unforeseen health, accident, and personal emergencies.
“With them having access to REVI Credit, and of course, the insurance, our partner drivers can breathe easier. They will always have something to tap in cases of unanticipated needs,” Majarocon said.
Aside from an easy access to REVI Credit, the partnership will also give the partner drivers GSave accounts requiring no minimum balance. Yielding a savings interest rate of five percent per annum, this will also enable them to save money from their daily wages.
“We intend REVI Credit to serve everyday Filipinos, especially those who do not have easy access to credit products. We want to change access to credit in a big way,” Manoharan said.
Under its Digital Payments Transformation Roadmap, the BSP aims to increase the number of Filipino adults with bank accounts to 70 percent and shift 50 percent of total retail transactions to digital channels by 2023.