EastWest to roll out new credit facility for MSMEs

Gotianun-led East West Banking Corp. on Tuesday said it is looking to tap micro, small, and medium enterprises (MSMEs) in the country, as the bank is set to roll out a lending program specifically tailored to the sector in the coming year, citing its big potential.

According to EastWest chief executive officer Jerry Ngo, the company is set to launch the credit service for MSMEs by the first quarter of 2026, as it is already scheduled to conduct a pilot for the planned program soon.

“We’re looking at how we could leverage on our existing products to start lending to SMEs, so maybe give us a few months,” he told reporters in Makati City.

“We want to start with the debit card, the capability, the features, the functionalities, and expand that to as many clients as possible,” he added.

EastWest, in partnership with Visa, on Tuesday formally launched its BizAccess Visa Debit that gives entrepreneurs a platform to manage business transactions including purchases and supplier payments, and other business-related expenses.

The service allows business owners to issue up to 10 cards to their staff, and monitor transactions under one account. It also provides travel accident insurance, transaction notifications, and a checking account that requires a minimum maintaining balance of P25,000.

Once the debit card is fully rolled out, Ngo said EastWest will then expand the offering to include credit services for MSMEs, citing the potential of the sector as they make up 99% of businesses in the Philippines.

“SMEs are the backbone of the Philippine economy, and we’re proud to give them the tools they need to thrive,” he said.

Ngo did not provide figures on how MSMEs account for in its total loan book, but said that 84% are consumer loans, which includes personal loans that are also being used for business purposes.

“It’s already starting with our personal loan, except that we’ve not been able to segregate it and put a broader value proposition like what we’re doing today. We’re looking at small pilots, regional pilots. We’re doing it very methodically,” Ngo said.

EastWest senior vice president and head of Marketing and Cash Management Martin Reyes said the credit service will be tailored to MSMEs and specific to their needs, instead of a general purpose loan.

“We can craft very specific supply chain type of loans instead of just a direct general purpose personal loan so this way, we know exactly what’s the purpose of that loan and we can track it well, we can have better grip on what we’re lending, and we can also advise the customer because we can see what the purpose is,” he said. — JMA, GMA Integrated News