City Savings tightens motorcycle loans

MANILA, Philippines — Aboitiz-led City Savings Bank has tied up with financial technology firm FinScore to provide credit scoring and fraud flagging as the bank steps up efforts to cater to underbanked loan applicants.

The thrift bank subsidiary of Union Bank of the Philippines said the partnership would help provide credit scoring for motorcycle loan applicants.

FinScore will provide fraud detection tools to allow City Savings Bank to verify details such as the authenticity of the applicant’s declared residential and place of work addresses.

The program uses application programming interface (API) integration to make real-time inquiries to determine the creditworthiness of applicants.

The bespoke model is based on over 400 telco variables such as data and voice usage, top-up patterns, location, and device data.

With FinScore’s highly predictive machine learning technology, City Savings is gearing up to open more opportunities to approve loans for both banked and underbanked applicants.

FinScore, a financial technology company, offers a powerful credit scoring platform and fraud detection tool based on alternative data, including telco-based data.

City Savings Bank is the country’s fifth largest thrift bank in terms of assets with P80.82 billion as of end-March. It also ranks fifth in terms of deposit liabilities with P45.12 billion and net loans with P58.6 billion. It has 140 branches nationwide.

It provides a range of mass market financial products and services such as salary loans to public and private school teachers, pension loans to pensioners of the Government Service Insurance System and Social Security System, overseas Filipino workers’ loans, seafarer loans, motorcycle loans, and traditional deposit products.