MANILA, Philippines - CitySaving Bank Inc. (CitySavings), the thrift bank segment of the Union Bank of the Philippines (UnionBank), has expanded its footprint with its partnership with PetNet Inc.
PetNet is an urgent transaction center and outsource service provider with 2,200 locations nationwide. Aboitiz Equity Ventures Inc. (AEV), the majority equity controller of PetNet, is also the holding company for CitySavings and UnionBank, the commercial bank.
Lorenzo Ocampo, PetNet president said in a press briefing that among the many services it offers is to assist CitySavings or Government Services and Insurance System (GSIS) clients, particularly teachers nationwide.
“We act as the front office for the bank,” Ocampo said.
PetNet introduces or explains to teachers, for example, what teacher’s loans are and how it works. Then they facilitate or introduce the same to CitySavings.
CitySavings will then make the credit evaluation, and most cases, make the loan recommendations. If approved, the bank can release the loans directly to the teacher, or course it through PetNet.
“The bank has access to our network. In fact, the interest rates on loans will also be substantially different and competitive,” he added.
Last years, loans coursed through the service provider numbered over 10,000 loans. And Ocampo said the aspiration is to double the number of loans processed or course through its system this year.
Aside from fronting for CitySavings, the outsourcing service provider is also one of the leading agents for Western Union, one of the largest international money transfer or remittance company.
Recently, PetNet consolidated its various services under the brand name Pera Hub, a one-stop for financial services with 2,100 locations nationwide.
Pera Hub offers not only loan facilitation for institutions as GSIS and CitySavings.
It offers remittance services for overseas Filipinos as Western Union’s local agent, as well as money changing, travel agency, personal accident (PA) insurance, airtime load, among others. Malayan Insurance Co. Inc. is the underwriter for PA.
Ocampo admitted that the bulk of their revenues come from transaction fees for its financial service providing, such as remittance and money changing business.
“But we expect the loan business to be a strong second revenue contributor within the next two years,” he added.