Raising an undisclosed amount, Philippine-based banking software firm Netbank finished its Series A funding, with Beenext alongside Oak Drive Ventures and Kaya Founders as major investors.
Netbank was founded by two entrepreneurs with experience in banking, David Paulo Dela Paz and Gus Poston, in 2019, with claims of being a one-of-a-kind as banking-as-a-service in Southeast Asia.
With a robust partnership across a network of financial institutions, the fintech firm offers a diversity of services, ranging from a simplified opening of accounts to the operation of SME loans, as well as the management of payments.
With a remarkable performance as established in March this year, Netbank grew in assets by 16x, deposits by 14x, and loans by 5.5x across the span of 12 months.
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Comparing the Philippines to Thailand, Netbank Co-Founder Gus Poston told Tech in Asia that Small and Medium Enterprises (SME) lending that contributes to the country’s GDP in the former is only 3 percent relative to the latter’s 37 percent.
The increased aversion to risk among banks in the country in addition to the technical difficulties of getting new clients on board as causes for the low rate. However, Poston said that the nation’s underdeveloped lending to SMEs is what fuels the banking label’s growth.
With 20 unique financial solutions underway, Netbank is setting itself up for an expansion outside of the Philippines in the future.