Standard Chartered partners with PChome for loans

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  • By Kao Shih-ching / Staff Reporter

Standard Chartered Bank (Taiwan) Ltd (渣打國際商業銀行) announced yesterday that it has partnered with PChome Online Inc (網路家庭) to offer loans to the e-commerce platform’s nearly 10,000 vendors to meet to their financial needs.

The collaboration came as a surprise in light of PChome’s cooperation with Citibank Taiwan Ltd (花旗台灣) and E.Sun Commercial Bank (玉山銀行) in issuing co-branded credit cards.

Standard Chartered said it does not plan to launch a credit card with PChome, as the local credit card market is already extremely competitive, but will instead focus on lending to e-commerce retailers.

Photo: ANC

E-commerce retailers are generally overlooked, as banks prefer their physical counterparts, who have tangible assets, Standard Chartered said.

As such, the financial needs of e-commerce retailers are generally not met, he added.

A survey showed that 62% of PChome suppliers said they needed more working capital as sales soared amid the COVID-19 pandemic.

While 69% of respondents said they depended on banks for funding, they said the application process was cumbersome, including having to wait at bank offices, the survey found.

Standard Chartered said that is why its lending program is an online service: providers can submit applications online, but would have to stamp their company seal on paper in accordance with regulations.

The bank will send a delivery man to pick up the documents, so applicants don’t need to go to his office, he said.

Standard Chartered said it would be able to offer a more accurate revolving credit limit than traditional bank offerings because it would be able to access PChome’s database to verify the provider’s operational performance.

The higher a supplier’s sales, the higher its lending quota will be, he said, adding that the bank would not access customer data unless they applied for a loan.

The process uses big data analysis, artificial intelligence and application programming interface, as well as the data connection between Standard Chartered Bank, PChome and the Joint Credit Information Center (金融聯合徵信中心), did he declare.

The loan program would be the first in the country dedicated to e-commerce retailers, he said.

“This service would not only meet the financing demands of small and medium-sized retailers, but it would also help control credit risk. It is essential for us to build a digital financial ecosystem in Taiwan,” Standard Chartered Taiwan CEO Ian Anderson told reporters.

A preliminary assessment showed that of all PChome suppliers, 10,000 would be eligible to participate in the program, and the bank expects around 20% of them to apply for loans by the end of this year. .

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