Fintech innovator WeFund Lending Corp., the driving force behind the popular JuanHand app, is significantly expanding its reach by embedding its lending services into two of the Philippines’ e-commerce giants: Shopee and TikTok Shop.
This strategic move promises to provide millions of Filipinos with swift and accessible financial assistance directly within their favorite online shopping platforms.
JuanHand now powering Lazada FastCash and TikTok PayLater
Six years after its inception, JuanHand, renowned for its streamlined loan application process requiring only a valid ID, a smartphone, and an internet connection, is now powering Lazada FastCash and TikTok PayLater.
These embedded services offer shoppers a seamless way to access funds when short on cash or opt for a “buy now, pay later” option, all within the familiar interface of their preferred e-commerce sites.
In an interview at the sidelines of the Singapore Fintech Festival, Francisco “Coco” Mauricio, the CEO of WeFund Lending Corp., highlighted the company’s commitment to financial inclusion by stating that their platform provides “instant lending to Filipinos with a smartphone, regardless of their credit history.”
This approach directly addresses a significant portion of the population traditionally underserved by conventional financial institutions.
The numbers speak volumes about JuanHand’s impact. The online lending platform currently boasts two million active borrowers, with a staggering 16 million individuals having registered for its services. Mauricio revealed that they process an impressive 100,000 transactions daily, with a remarkable 90% of users returning for subsequent loans.
“Our goal at JuanHand is to be a helping hand to every Juan, and we’ve barely scratched the surface,” Mauricio asserted, indicating the vast potential for growth in the Philippine market. “We’re just at 5% of the size of this underserved market.”
Bridging the credit gap for millions of Filipinos
To date, JuanHand has facilitated over P45 billion ($772 million) in loans, offering borrowers the ability to access up to P50,000 with flexible repayment plans extending up to nine months. This accessibility stands in stark contrast to traditional banking procedures, which often require extensive documentation and a proven credit history.
Mauricio emphasized the transformative role of fintech in bridging this gap. “Before online fintechs became a thing, if you needed money and a bank rejected your loan, where would you go?” he questioned, highlighting the often-limited and potentially risky alternatives faced by many Filipinos.
He pointed out the prevalence of predatory lending practices, such as the notorious “five-six” scheme, where borrowers face exorbitant interest rates, often as high as 20% weekly or even per payday. “That translates to a minimum of 40% to 80% interest per month,” Mauricio explained, underscoring the financial burden these usurious lenders impose.
JuanHand, in contrast, adheres to the interest rate limits set by the Securities and Exchange Commission, charging a daily interest of 0.49% or approximately 15% per month.
“Through technology, we’re able to give them the proper option, not just making them avoid predatory interest rates but also harassment,” Mauricio affirmed.
More than a name: A symbolism of accessible assistance
The company’s name itself reflects its mission: “Juan” from Juan Dela Cruz, a common Filipino moniker representing the everyday person, combined with “Hand,” symbolizing a helping hand, which encapsulates JuanHand’s aim to provide accessible financial assistance to the masses.
Beyond immediate financial needs, Mauricio noted that a significant 30% of their borrowers utilize the loans for business purposes, particularly in the burgeoning e-commerce and online selling sectors. This highlights the platform’s role in empowering micro-entrepreneurs and fostering economic activity.
Further demonstrating its commitment to financial empowerment, WeFund also operates Wealth Advice for Growth and Inclusion, a financial literacy app. This initiative provides accessible information on fundamental budgeting principles and even stock investing, aiming to equip Filipinos with the knowledge to manage their finances effectively.
By strategically integrating its lending capabilities into the widely used platforms of Shopee and TikTok Shop, JuanHand is poised to reach an even broader audience, offering a convenient and regulated alternative to traditional and often exploitative lending sources.
This move signals a significant step towards greater financial inclusion in the Philippines, empowering consumers and small businesses alike with readily available digital credit.