Union Bank’s financial supply chain platform to be integrated with XLOG’s logistics platform.
Union Bank of the Philippines and fintech firm XLOG have teamed up to offer the Philippines’ first blockchain-powered supply chain financing solution embedded in a logistics platform.
“We are firm believers in how blockchain technology can bridge gaps in different industries. We have already seen it disrupt the financial industry. With this partnership, we hope to innovate the logistics business by integrating the financial supply chain platform with the already advanced logistics platform of XLOG,” said Henry Aguda, Union Bank’s chief technology and operations officer, chief transformation officer and UBX Philippines chairman.
According to a joint statement sent to Forkast News, the deal will allow XLOG to integrate its platform with the bank’s financial supply chain. In addition, users of XLOG’s platform will have access to end-to-end logistics technology for flexible payment arrangements, real-time monitoring, operational efficiency and online documentation on the blockchain.
Logistics sector businesses, including shippers and freight forwarders, will have access to financing to cover gaps in collection and payables with service providers, according to the statement. The financing facility will allow shippers the benefit of extending their credit terms, while service providers can receive advance payments through discounting.
Service providers in the logistics industry will have better opportunities to expand their businesses, with the platform extending longer payment terms to their customers, thus closing more significant transactions.
“The partnership will also improve the cash flow of the parties by enabling the early collection of receivables via financing,” Union Bank and XLOG said in the statement.