RIZAL Commercial Banking Corporation (RCBC), the rapidly growing and acclaimed digital challenger bank, has joined forces with Bizbaz, a Singapore-based AI-powered credit scoring and risk assessment solutions provider.
The aim of this partnership is to revolutionize credit options, specifically targeting micro, small, and medium enterprises (mSMEs) in the Philippines.
RCBC plans to leverage Bizbaz’s cutting-edge AI-driven credit assessment and scoring tool to evaluate the eligibility of enterprises in unbanked and underserved communities across the Philippines. By incorporating innovative technology to model the creditworthiness of their target clients, both institutions are poised to mitigate non-performing loan (NPL) risks effectively.
Bizbaz’s CEO and co-founder, Hayk Hakobyan, highlighted the inadequacies of the current credit system, emphasizing the need for an alternative that harnesses the latest AI technology and behavioral science data. This shift, he believes, is crucial for the vast Asian population that lacks a traditional credit score. The collaboration between RCBC and Bizbaz seeks to address this gap, providing MSMEs with access to a credit lifeline that would otherwise be unattainable.
In response to the growing NPL concerns in Southeast Asia, with the World Bank projecting an increase from 5.7percent in 2022 to 5.9 percent in 2023, RCBC sees this partnership as a strategic move to foster financial inclusion and innovation. The Philippines, with a recorded NPL of 4.2 percent, faces an annual loss of USD 50 billion according to the World Bank.
RCBC’s leadership, including the head of data science and analytics Ma. Pamela Katrina Cadudoy and chief credit officer Bennett Clarence Santiago expressed optimism for the collaboration. They highlighted the importance of exploring alternative and radical data points for predictive AI scoring, enabling the bank to deepen its understanding of MSMEs and support their capitalization needs while managing risks effectively.
Eugene Acevedo, RCBC president and CEO, expressed excitement about the strategic collaboration, emphasizing RCBC’s commitment to being at the forefront of emerging technologies and data-driven innovations.
Lito Villanueva, executive vice president and chief innovation and inclusion officer of RCBC, sees the integration of AI into the credit score assessment process as a pioneering effort towards greater access and opportunities for MSMEs.
