by Sonia Vasquez | Jan 10, 2017 | Uncategorized
Sealing the Lendr-First Circle digital partnership (4th from left) Manuel V. Pangilinan, PLDT group Chairman and CEO and Patrick Lynch, First Circle President and CEO with (L-R) Kunal Pandey, FINTQ International Business Development Head, Lito Villanueva, FINTQ Managing Director, Orlando Vea, Voyager Innovations President and CEO, Timothy Glynn, First Circle CFO and Agustin Santiago, FINTQ Digital Banking Products Head.
[09 DECEMBER 2016] First Circle, the first digital SME business financing company in Southeast Asia, has collaborated with FINTQ to provide loans for SMEs via Lendr, an end-to-end loans origination and loans management platform accessible through multi-channel device such as desktop, tablet or mobile.
Lendr is one of the breakthrough products developed by FINTQ, the financial technology unit of Voyager Innovations, the digital innovations arm of PLDT and Smart Communications (Smart).
Through Lendr, First Circle will be able to expand and fulfill its mission of empowering more Philippine SMEs to grow their business. “We are delighted to collaborate with Lendr, which shares our same vision to expand the reach of financial products and provide convenient, hassle-free loan applications to our customers,” Patrick Lynch, First Circle President & CEO explained.
First Circle is among the first business loans to be offered in the Lendr marketplace, which allows the borrowing market to search and directly apply to an array of financial and non-financial institutions through its integration with lender partners.
“First Circle is proud to join the esteemed partners of Lendr as this partnership specifically allows SMEs to be connected to our products and services for their business financing needs,” Lynch expounds.
“Given that access to finance of the Philippine SME sector remains challenging, a digital lending platform to make the loans availment experience seamless, quick and efficient among our entrepreneurs is crucial to capacity-building. This provides a huge opportunity to tap the greater SME market. First Circle is among the first ten banks and non-banks that are currently deployed under the trailblazing Lendr platform with more partner financial and non-financial institutions in various stages of on-boarding,” said Lito Villanueva, FINTQ managing director.
SMEs in the country account for 35 percent of gross domestic product (GDP), which is the second lowest in Southeast Asia next to Myanmar. It employs about 65 percent of the workforce, majority of which reside in Metro Manila.
According to a study by the Asian Development Bank, personal funds remain to be the dominant source of financing among local SMEs, where only 39 percent of respondent cited bank loans as a funding means. Among the barriers to financing that were cited include slow fund disbursement due to lack of credit information, inadequate bank and government guidance on preparation of compliance documents, and vulnerability of financial institutions that result to high cost of loans.
In less than two years, FINTQ’s digital lending platforms have yielded exponential growth year-on-year. Its loans outstanding grew over a hundred percent in excess of P15 billion while loans booked increased by almost a hundred percent to more than 100,000.
With its platforms, FINTQ has the most extensive digital lending footprint in the country today, with loan transactions coming from all 81 provinces, 90 percent of the 145 cities and eight percent of the 1,490 municipalities.
Digital is making financial services more accessible and inclusive. Seven out of 10 borrowers from FINTQ’s digital lending platforms are from the provinces, with more than 20 percent coming from low-income cities and municipalities. Almost half of all digital loan applications were lodged outside banking hours making it the best-practice model in branchless banking and expanding access to finance.
The digital lending service will soon be expanded to other sectors such as overseas Filipino workerss, agriculture for small farmers for agriculture, healthcare via medicine loans and the informal segments. This includes other consumer loan products namely: auto, motorcycle, housing, credit cards, pension aside from the existing mSME, personal and salary loans.
About First Circle
First Circle is the first digital SME financing company in South East Asia. Creating powerful technology enables them to bring together the best businesses. They do this through a simple online account, advanced data analytics, dedicated customer success representatives, and a community of business owners complete with a host of useful resources. First Circle exists to radically improve the course of opportunity for SMEs across South East Asia; to help business owners achieve growth that surpasses what they once believed possible; to expand their First Circle beyond their family and friends.
About FINTQ
The leader in customer-centric, demand-driven, mobile-first, value-creating, and inclusive digital financial innovations through collaboration across strategic markets with award-winning and pioneering platforms, products and services. It is the largest and the only financial technology business with diverse digital banking and finance portfolio of platforms including lending, security, micro-savings, insurance, disbursements, micro-credit and virtual banking, among others. It has received over 25 regional and global accolades including features in international publications.
by Sonia Vasquez | Nov 29, 2016 | Uncategorized
Consumers, not “fintechs”, are disrupting financial services industry. Speaking at the IDC Financial Services Summit, Lito Villanueva, Managing Director of Voyager’s FINTQ, underscores the need for banks and other financial institutions to embark on digital transformation to address consumer needs.
[29 NOVEMBER 2016] This was highlighted by an executive of Voyager Innovations, PLDT and Smart’s digital innovations arm, at the recently held IDC Financial Services Summit at the Shangri-la at the Fort in Manila.
In his session, Lito Villanueva, managing director of Voyager’s financial technology arm FINTQ, zeroed-in on the current fast pace of financial services forcing banks to re-think, re-calibrate and reconsider a digital pivot.
“Consumers are the ones dictating the pace of change, and they themselves are the ones disrupting all industries, banks included. We must be agile with an open framework to address the changing needs of customers and requirements of regulators,” said Villanueva, the only Filipino fintech expert invited to speak at the plenary on moving banking to an innovations platform.
He further emphasized that while banking can be at the center of the digital transformation, financial organizations must evolve from the traditional closed-loop systems to an open architecture to keep up with market challenges, as well as enable integration from third parties and facilitate faster time to market execution with new differentiating products and services.
“Knowing who the customer is defines your business but understanding the customer’s needs fully well defines your business success,” Villanueva stressed.
Banks’ digital transformation is a “must” to respond to the increasingly demanding digital consumer. “Every enterprise or business endeavor must be on the ‘front screen’ of every customer’s smartphone with a promise of a delightful user experience,” Villanueva added.
Villanueva presented data from FINTQ’s successful deployment of its pioneering digital lending platforms such as the LANDBANK Mobile Loan Saver and Lendr. Aside from exponentially growing its volume and base, FINTQ’s digital lending platforms are expected to close the year with over P10.4 billion in loans disbursed and more than 100,000 borrowers.
FINTQ’s digital lending platforms have extended the reach of partner financial institutions, leveraging on mobile devices as the pervasive customer touchpoint. Almost 50% of borrowers lodged their loan applications outside office hours.
Around seven out of ten borrowers were from the provinces and as much as 35% of them are from low-income cities and municipalities. Over the past ten months, the growth of the loan portfolio running on the digital platform showed very encouraging figures contributing to government efforts in promoting financial inclusion in the countryside. Loan portfolio growths in Luzon, Visayas and Mindanao were registered at over 400%, almost 150% and over 250%, respectively.
The IDC Financial Services Summit was presented by the FIS and the IDC Financial Insights of Singapore. The event focused on exploring the era of digital transformation in the banking industry. It highlighted the need for financial institutions to be bold in their approach to architect infrastructure and systems with a digital transformation mindset and embrace collaboration with new partners. It gathered key executives from various financial institutions in the country. Among the speakers include leaders from Samsung Pay, OCBC, FIS, Capco and BSP.
Villanueva was among the Top 100 Asian Fintech Leaders, the first and only Filipino included in the list. FINTQ is part of Voyager Innovations, the digital innovations arm of PLDT and Smart, that creates platforms and services for emerging markets. Aside from financial technology, some of the areas of its focus include digital financial services, digital payments, digital commerce, sponsored internet access, communications technology, and digital marketing. END
by Sonia Vasquez | Nov 29, 2016 | Uncategorized
TOWARD A SMARTER WAY TO APPLY FOR SALARY LOANS. Just launched: PNB Savings Bank’s Smart Salary Loan digital lending facility powered by Lendr. Now, employees of PNB’s partner companies may take out a loan via their digital devices anytime, anywhere. Lendr is powered by FINTQ, the financial technology arm of PLDT’s Voyager Innovations. In photo are (from left) Manuel V. Pangilinan, PLDT-Smart Chariman, President and CEO; Orlando B. Vea, Voyager Innovations President and CEO; Joven Hernandez, PNB Savings Bank President; Flor Tarriela, PNB Chairman; and Lito M. Villanueva, Managing Director for FINTQ at Voyager Innovations.
[25 NOVEMBER 2016] PNB Savings Bank, a wholly owned subsidiary and the consumer arm of Philippine National Bank (PNB), together with Voyager Innovations, the digital innovations arm of PLDT and Smart, recently launched the Smart Salary Loan service to enable quick and convenient loan application and approvals via any mobile device.
Through Lendr (www.lendr.com.ph), PNB Savings Bank will initially be offering its Smart Salary Loan product to qualified employees of the Lucio Tan Group of Companies, one of the largest and most diverse conglomerates in the country.
Lendr, the digital lending platform of Voyager’s financial technology arm FINTQ, provides a convenient and hassle-free mobile-enabled system that allows employees to apply for a loan and get quick approvals through any digital device, anytime, anywhere.
“With Lendr, this digital innovation will show PNB’s expertise in customer-focused loan products made for every Filipino here and abroad. This is PNB’s digital transformation – for our customers to be capable in the present and ready for the future,” said Flor Tarriela, PNB Chairman.
“It is time to start our people and our financial institutions on their digital journey. And we, at PLDT, as part of the country’s leading institutions, are partners in bringing the best of this era to all of them. Some of those include convenience, efficiency, empowerment, and inclusiveness through mobile technology and the payment systems that we’re enabling as well,” said Manuel V. Pangilinan, PLDT and Smart Chairman, President and CEO.
Convenient loan applications
Some of the companies participating in the program include PNB, Philippine Airlines, Asia Brewery Inc., Tanduay, Lufthansa Technik Philippines, ETON, among others.
By bringing salary loan applications to the digital space, Lendr will save employees the trouble of having to fill up long forms, filing several requirements, and lining up for long hours at the bank. In just a few short steps, employees may get the loan when they need it the most.
Employees need to register for a Lendr account, fill up basic information and upload an image of their requirements in order to apply for a Smart Salary Loan. Once approved, they will be notified via text message of the loan’s availability which they may track and manage.
By bringing salary loan applications to the digital space, Lendr will save employees the trouble of having to fill up long forms, filing several requirements, and lining up for long hours at the bank just to get a loan when they need it the most.
Employees only need to click on the special link they will receive via a text message, register for a Lendr account, fill up basic information and upload their documentary requirements in order to apply for a Smart Salary Loan. Once approved, they will be notified via text message of the loan’s availability. Theywill be able to track and manage their monthly repayments via Lendr as well.
The new digital lending facility through Lendr is in line with the thrust of PNB Savings Bank, as well as its parent company PNB, to become an innovation leader in the financial services space as it celebrates 100 years of banking leadership this year.
“This is PNB Savings Bank creating value and enriching lives, helping employees grow as individuals, families, and communities, and making their dreams possible through an easy-to-use digital salary loan application system that is open 24/7,” said Joven Hernandez, PNB Savings Bank President.
“Lendr turns every mobile phone in the pockets of employees into a virtual PNB Savings Bank branch, allowing them to apply for loans in times of urgent needs. In this digital age, speed and convenience are the key to winning customer delight, and we are glad that PNB Savings Bank has taken the first steps toward this digital transformation,” added Orlando B. Vea, Voyager Innovations President and CEO.
Fintech collaborations in industry
This latest collaboration with PNB Savings Bank is the best example of “finbiosis,” or the mutually beneficial relationship between banking institutions and financial technology upstarts, according to Lito M. Villanueva, Managing Director at FINTQ.
“Consumers continue to disrupt the way many companies operate, banks included, as they demand speed and convenience at the tap of their digital screens. We are glad that PNB Savings Bank has taken an open framework approach to addressing this sea change in the consumer landscape by partnering with FINTQ to bring such propositions to life,” Villanueva said.
“The National Retails Payments System envisions a robust and interoperable payment system that enables efficient and cost effective digital transactions. Lendr is an initiative that supports this vision by providing a platform for people to link with their financial providers in a convenient manner regardless of time and location,” said Bangko Sentral ng Pilipinas Deputy Governor Nestor Espenilla, Jr.
FINTQ’s digital lending platforms have extended the reach of partner financial institutions, leveraging on mobile devices as the pervasive customer touchpoint. Based on data from ongoing digital lending programs running on FINTQ platforms, mobile has allowed almost 50 percent of borrowers to lodge their loan applications outside office hours, and extended the reach of banks to remote cities and municipalities nationwide.
FINTQ is the financial technology arm of Voyager Innovations. Aside from fintech, some of the areas of Voyager’s focus in creating platforms and services for emerging markets include digital financial services, digital payments, digital commerce, sponsored internet access, communications technology, and digital marketing.
To know more about PNB Savings Bank’s Smart Salary Loan offer for employees, visit www.pnbsavings.com.ph or call PNB Savings Bank Customer Care at (02) 652-PNBS (7627). Get to know more about Lendr by visiting www.lendr.com.ph. [END]
by Sonia Vasquez | Sep 21, 2016 | Uncategorized
IMPROVING PHILIPPINE HEALTHCARE THROUGH DIGITAL TECHNOLOGY. LANDBANK, Unilab’s RiteMed, and Voyager Innovations forge a groundbreaking partnership that will give wider access to generic medicines with the help of mobile-based lending service LANDBANK Mobile Loan Saver. Present during the partnership launch are (from left) Vincent Guerrero, General Manager, RiteMed; Liduvino S. Geron, SVP and Branch Banking Sector Head, LANDBANK; Manuel V. Pangilinan, Chairman, PLDT, Smart, and Voyager; Cecilia C. Borromeo, Officer-In-Charge, LANDBANK; Clinton Campos Hess, President and CEO, Unilab; Jose Maria Ochave, Senior Vice President for Social Partnerships, Unilab; Orlando B. Vea, President and CEO, Voyager Innovations; and Lito M. Villanueva, Managing Director, FINTQ.
[September 16, 2016] The LANDBANK Mobile Loan Saver (LMLS) once again breaks new ground with another first in digital banking as it ties up with the leading branded generics company in the country, RiteMed, for the Tamang Alaga TxTMED program: “Kapag kailangan ng gamot, dapat may gamot.” The pioneering and award-winning LMLS is powered by FINTQ, the financial technology arm of Voyager Innovations.
The Tamang Alaga partnership further expands the coverage of LMLS, allowing borrowers to allocate a portion of their approved net loan proceeds for the purchase of medicines. RiteMed, will make available a range of maintenance medicines at special discounted prices.
TxTMED, which will be available within the last quarter of the year, will enable government employees and private sector workers with payroll accounts with LANDBANK to seamlessly order and purchase medicines through their mobile phones, without the hassle of outright cash payment. The program, however, does not cover teachers, military and police personnel. Medicines ordered via LMLS will also be delivered for free in sealed packs to the concerned government agency or company office where the borrower is employed, within a week from the time of loan approval and release.
“We understand the financial burden of high medicine costs on many Filipinos, which is why through this initiative, we hope to provide LMLS borrowers with access to affordable and quality medicines. This is yet another showcase of the endless possibilities in terms of financial technology and digital lending, especially as we hope to reach out and provide financial and other services to more Filipinos across the country,” said LANDBANK Officer-in-Charge and Executive Vice President Cecilia C. Borromeo.
“Initially, over 700,000 government employees will benefit from the partnership of RiteMed with LANDBANK and Voyager Innovations’ FINTQ, an unprecedented collaboration of public and private organizations to champion the rights of the Filipinos to quality and affordable healthcare. The burden of coping with the daily cost of maintenance medicines, not to mention certain catastrophic diseases, have caused much physical, emotional and economic strains to Filipino families most especially to the public sector who have limited earning capacities,” says Vincent Patrick Guerrero, General Manager of RiteMed. “We are quite optimistic that with the technology of FINTQ and the nationwide network of LANDBANK, we would be able to fulfill the objective of RiteMed’s Tamang Alaga program of providing access to quality healthcare for all Filipinos.”
“Enabling digital technology ultimately levels the playing field where our underserved Filipinos with little or no access to quality and cheaper medicines would now have the chance to enjoy its benefits through our award-winning digital lending platform,” said Manuel V. Pangilinan, Chairman of Voyager Innovations and FINTQ. Both Voyager and FINTQ are digital innovation units of PLDT and Smart Communications.
This new partnership takes the LMLS to another level, following its successful roll-out among government employees, with loan releases amounting to over P12 billion as of August 2016 since it started. This has benefited more than 80,000 employees from over 1,200 participating agencies since the program’s commercial launch in January 2015.
The LMLS is now also telco-agnostic, making it available across all telco providers and has been expanded to include private sector employees. The inclusion of small farmers and fishers, microenterprises and SMEs, and Overseas Filipinos is also underway, making it more expansive to promote inclusive growth and digital financial inclusion.
“This is another first as we are helping provide access to healthcare through this digital channel. This is an initiative that promotes universal health care and social support access among Filipinos even at the grassroots, which is a basic human right,” said Lito Villanueva, Managing Director of FINTQ.
The LMLS has been recognized by the GSMA Mobile Money Programme as the first of its kind in the world for being a three-in-one mobile loan application service with auto-savings build-up features. It has also garnered seven global awards and recognition for the revolutionary and successful leverage of digital lending in an emerging market in less than two years. It has been featured by international publications as among the best practice models. [END]
by Sonia Vasquez | Sep 21, 2016 | Uncategorized
Voyager Innovations was recently tapped by the Anti-Money Laundering Council Secretariat for its first Fintech Briefing held at the Bangko Sentral ng Pilipinas (BSP), which focused on trends around financial technology, its corresponding challenges and opportunities, and appropriate regulatory responses to emerging innovations. This is in line with stakeholder collaboration efforts for better understanding and enablement of appropriate policies and regulatory frameworks needed by the industry. Invited as resource persons were executives from Voyager Innovations led by Lito Villanueva, CEO of FINTQ, the recently spun-off digital financial services entity of Voyager Innovations and Julie Reyes, head of compliance and regulations for Voyager Innovations and PayMaya Philippines. Photo shows Villanueva (second from right) and Reyes (rightmost) with Secretariat Executive Director Atty. Julia C. Bacay-Abad (second from left) and Deputy Director George Tan (leftmost). END
by Sonia Vasquez | Sep 21, 2016 | Uncategorized
[JULY 22 2016] TNT, the country’s largest prepaid mainstream mobile brand under Smart Communications, in cooperation with Land Bank of the Philippines (LANDBANK) and FINTQ, the financial technology unit of PLDT and Smart’s digital innovations arm Voyager Innovations, has expanded its financial inclusion and livelihood drive among Filipinos through its Panalo SIKAP program targeting beneficiaries of the government’s conditional cash transfer program.
Rolled out in conjunction with LANDBANK’s recent “Ipon at Kabuhayan para sa mga Kababayan” financial inclusion caravan held simultaneously in nine third- to fifth-class municipalities all over the country, the “Panalo Sa Ipon at Kabuhayan Aasenso ka Pinoy (SIKAP)” program provides an incentivized credit and voluntary savings-linked program initially targeting beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps).
“Smart and TNT are one with LANDBANK and FINTQ in promoting financial inclusion nationwide through unique partnerships such as the Panalo SIKAP program. With the help of mobile technology, we are able to reach more of those in need and empower them with the right services and opportunities to improve their lives,” said Kat Luna-Abelarde, Smart Wireless Consumer Operations Head.
“Through the Panalo SIKAP program, financial inclusion of unbanked and underserved citizens in the country is accelerated by giving them the option to save and, eventually, put up their own business. This leads to true inclusive growth that empowers each and every member of society to have sustainable livelihood,” explained Lito Villanueva, CEO at FINTQ, country’s leading, most diversified and pioneering FinTech company.
Intensified drive
Through the program, 4Ps beneficiaries are given the chance to enroll and choose a fixed amount of P50 or P100 that will be automatically deducted from their monthly 4Ps cash benefit.
LANDBANK will then provide a loan to the beneficiary equivalent to 50% of the projected savings build-up for five years at a socialized rate of 2% annually, which can be used initially to start a Smart and TNT airtime load retailer business or any micro-enterprise eventually forming a cooperative.
“Airtime reloading is a lucrative micro-business especially in small communities that have little to no access to bigger enterprises. TNT is proud to be part of the Panalo SIKAP program providing livelihood opportunities to Filipinos nationwide, so they can graduate from mere users of mobile technology to business owners earning from sustainable livelihood,” added Miriam Choa, TNT Brand Head.
Once the loan has been fully paid and the beneficiary has established their credit-worthiness, they can opt to apply for livelihood assistance at a much higher value. During the nationwide caravans, at least 4,000 unbanked Filipinos were able to open savings accounts on the spot and had the option to enroll their accounts to the Panalo SIKAP program.
The program is seen to ramp up the financial inclusion drive of various entities in the government and private sector in support of the Bangko Sentral ng Pilipinas’ (BSP) National Strategy for Financial Inclusion (NSFI), as it gives Filipinos a chance to be part of the formal banking and lending system in the country.
To date, only 3 out of 10 adult Filipinos have a bank account, with only 4.4% of the population having taken out a loan from banks and other financial institutions, according to latest BSP data from the NSFI study.
Mobile technology for financial inclusion
The program is just the latest in FINTQ’s efforts to utilize the power of digital and mobile technologies for financial inclusion, particularly among unbanked and underserved segments of the population.
Also in partnership with LANDBANK, it earlier launched the telco-agnostic Mobile Loan Saver platform, which digitizes the salary loan application process for government and private-sector employees using only their mobile devices.
For the past 18 months since LMLS was launched in January 2015, LANDBANK’s digital loan facility has already disbursed in excess of P9.40 Billion with over 1,100 participating government agencies.
Banking on the success of LMLS, FINTQ also recently launched Lendr, a digital loans origination and loans management platform accessible via the Web and on mobile devices. The platform has since signed up close to 20 commercial, rural, and thrift banks to date, with China Bank Savings and PNB Savings Bank as initial partners offering products via the platform.
Just recently, the unit likewise announced the launch of the “PISO (Personal Insurance and Savings Option) sa Kinabukasan” program targeted at public-school K to 12 students across the country, in partnership with the Department of Education, the Bangko Sentral ng Pilipinas, the Insurance Commission, LANDBANK, as well as PLDT Alpha Enterprise, Smart Communications, Inc. (Smart), Philippine Business for Social Progress, PLDT-Smart Foundation, United States Agency for International Development (USAID) and Sun Life of Canada (Philippines), Inc.
For more information about FINTQ and its digital financial offerings, visit www.fintq.com. [END]
by Sonia Vasquez | Sep 21, 2016 | Uncategorized
Representatives from the public and private sector come together to formally launch a groundbreaking initiative that will provide micro-savings and personal accident insurance for public schoolchildren dubbed “PISO (Personal Insurance and Savings Option) sa Kinabukasan.” Present during the partnership ceremony held at the Bangko Sentral ng Pilipinas were (seated, from left) FINTQ CEO Lito M. Villanueva, Sun Life of Canada (Philippines), Inc. President and CEO Riza Mantaring, LANDBANK President and CEO Gilda E. Pico, PLDT, Smart, and Voyager Chairman Manuel V. Pangilinan, Department of Education Sec. Bro. Armin Luistro FSC, Bangko Sentral ng Pilipinas Deputy Governor Nestor A. Espenilla, Insurance Commission Commissioner Emmanuel Dooc, and Voyager Innovations President and CEO Orlando B. Vea. They are joined by (standing, from left) BSP Head of the Inclusive Advocacy Staff Pia Roman Tayag, LANDBANK Branch Banking Sector Head EVP Jocelyn DG Cabreza, Sun Life Financial Asia President Kevin Strain, and DepEd External Partnership Service Head Dir. Margarita Ballesteros.
[16 JUNE 2016] Several government agencies led by the Department of Education (DepEd), in partnership with private sector companies, recently launched the first and biggest public-private partnership initiative that will help brighten the future of public-school K to 12 students through a tech-enabled early-stage micro-savings and personal accident insurance program.
The broad coalition, dubbed “PISO (Personal Insurance and Savings Option) sa Kinabukasan” is spearheaded by PLDT and Voyager Innovations’ financial technology unit FINTQ and supported by DepEd, the Bangko Sentral ng Pilipinas (BSP), the Insurance Commission, the Land Bank of the Philippines (LANDBANK), as well as PLDT Alpha Enterprise, Smart Communications, Inc. (Smart), Philippine Business for Social Progress, PLDT-Smart Foundation, United States Agency for International Development (USAID) and Sun Life of Canada (Philippines), Inc.
At least 24 million K to 12 public school students nationwide are expected to benefit from the groundbreaking program – the first of its kind in the world – which will give them a convenient and accessible way to save money with as little as P1 per day, while also having a personal accident insurance coverage as well.
“We are proud to be part of this initiative that seeks to empower and embolden young Filipino students to take charge of their future early on,” said outgoing DepEd Secretary Br. Armin A. Luistro FSC. “We have integrated financial literacy in the K to 12 curriculum in partnership with the BSP in the past, but I believe these lessons will make more sense when put into practice and eventually turned into a habit, something which the PISO initiative will help them achieve.”
“The importance of starting young when it comes to saving money cannot be overstated, as savings act as an important backbone of the Philippine economy. PLDT, Smart and Voyager, through FINTQ, are excited to be part of this groundbreaking initiative as digital enablers of the PISO project, which hopes to inculcate the values of savings and insurance among the young generation,” said PLDT, Smart and Voyager Chairman Manuel V. Pangilinan.
In pursuit of financial inclusion
The initiative is also in support of the National Strategy for Financial Inclusion (NSFI), which aims to provide effective access to a wide range of financial services and products to all citizens nationwide to promote inclusive growth. This comes a month ahead of the first year anniversary of the government’s launch of the NSFI in July last year with Queen Maxima, United Nation’s Secretary General Special Advocate for Inclusive Finance for Development.
“This revolutionary multi-stakeholder initiative will open doors for public school K to12 students to broaden their horizons by underscoring the importance of savings and insurance with the help of digital technology. Its ripple effect encompasses the schoolchildren’s parents, guardians, teachers and even the community leaders within their localities. It’s just like making the concept and value of savings and insurance among our children simple and easy to understand, and fun to have. Our aim is to make these social protection tools viral as a unique initiative towards financial inclusion,” added Lito Villanueva, CEO of FINTQ, the financial technology unit of Voyager under the PLDT Group.
“Building the habit of savings among young children is critical in developing their financial well-being, because when they start young, saving money will eventually come naturally for them when they grow up and generate their own income,” said BSP Deputy Governor Nestor A. Espenilla. “At the same time, this initiative will help address the unbanked and underserved population of the country and eventually enable the youth to participate in the growing economy.”
Representatives from the public and private sector come together to formally launch a groundbreaking initiative that will provide micro-savings and personal accident insurance for public schoolchildren dubbed “PISO (Personal Insurance and Savings Option) sa Kinabukasan.” Present during the partnership ceremony held at the Bangko Sentral ng Pilipinas were (standing, back, from left) Sun Life Chief Business Development Officer Michael Manuel, DepEd External Partnership Service Head Dir. Margarita Ballesteros, LANDBANK Branch Banking Sector Head EVP Jocelyn DG Cabreza, FINTQ CEO Lito M. Villanueva, Sun Life of Canada (Philippines), Inc. President and CEO Riza Mantaring, PLDT, Smart, and Voyager Chairman Manuel V. Pangilinan, Bangko Sentral ng Pilipinas Deputy Governor Nestor A. Espenilla, Department of Education Sec. Bro. Armin Luistro FSC, Sun Life Financial Asia President Kevin Strain, LANDBANK President and CEO Gilda E. Pico, Voyager Innovations President and CEO Orlando B. Vea, and Insurance Commission Commissioner Emmanuel Dooc. They were joined by public-school elementary students from various schools in Sampaloc, Manila.
This program also supports the BSP’s coin recirculation program which was launched as early as March 2005. The perceived shortage of coins is brought about by non recirculation of these coins. Coins are kept inside bank vaults, in piggy banks, inside drawers, used as washers, or thrown away as inconvenience. As of March 2016, the BSP has 24.5 billion pieces of coins in circulation valued at P27.6 billion. The number of coins in circulation is equivalent to 238 pieces per Filipino
The low regard towards lower-denominated coins is one of the main reasons coins are not circulating efficiently. Schoolchildren as agents of change in their homes and communities, however, can generate better appreciation of the use of coins.
“Financial inclusion is almost second-nature to LANDBANK, because countryside banking is at the center of our operations. This program is very timely because it will give us an opportunity to provide the youth an avenue to save money and give them the skills needed so that later on, they will know how to manage their own money in the future,” added LANDBANK President and CEO Gilda E. Pico
Protecting the future
By including personal accident insurance coverage for students in the program, parents will have to worry less about out-of-pocket expenses in times of emergencies, which tend to often affect their day-to-day finances.
“This is a very laudable project, the result of a collaboration between the government and private sector. Savings and insurance play important roles in the life of Filipinos, and starting them young is the key so that as they grow old, they are able to answer for any contingencies that may come their way,” said Insurance Commissioner Emmanuel Dooc.
“In the next five years, Sun Life will strive to reach five million Filipinos with insurance coverage in our collaborative pursuit of financial inclusion along with the government. Teaching students how to set aside money early on is a crucial first step toward achieving that objective. We believe that no country can truly sustain progress unless it takes care of every sector of society,” added Sun Life of Canada (Philippines) President and CEO Riza Mantaring.
Digital innovations for development
With only 4 in 10 Filipinos saving money and a low insurance penetration of just 1.84% in the country, leveraging digital technology becomes key to building a digitally and financially inclusive society.
“Voyager is a proud partner of the PISO initiative that is wholly in line with our mission of developing breakthrough digital initiatives for emerging markets like the Philippines,” said Orlando B. Vea, President and CEO of Voyager Innovations, the digital innovations arm of PLDT and Smart. [END]
by Sonia Vasquez | Sep 21, 2016 | Uncategorized
Speaking before officials from banks and financial institutions around the region during the BankTechAsia 2016 Conference held recently in Manila, FINTQ CEO Lito M. Villanueva emphasized the need for collaboration among financial institutions and financial technology firms in order to sustain growth in the industry.
[09 JUNE 2016] More opportunities for collaboration are opening up for banks and other financial institutions with financial technology or “fintech” firms in the Philippines as way of driving their growth and addressing financial inclusion gaps nationwide, a local fintech executive remarked during the recent BankTechAsia 2016 conference held in Manila.
While fintech firms have ushered an age of disruption in the banking and finance industry in developed markets such as the United States and European countries, the situation is starkly different in emerging economies such as the Philippines.
“Fintechs in emerging markets are not the enemy, but a strategic ally of financial institutions. I call it ‘finbiosis’, or a mutual co-existence that leverages on each of our strengths–technology and innovation for fintechs and financial expertise and capacity for banks,” explained Lito M. Villanueva, CEO at FINTQ, the financial technology unit of Voyager Innovations, the digital innovations arm of PLDT and Smart.
‘Finbiosis’ the way to go
In emerging markets such as the Philippines, fintechs do not aim to disrupt. Instead, fintechs here enable cost and service efficiencies for partners, engage with regulators to adapt to the emerging digital landscape, and empower consumers with frictionless experiences leveraging on mobile, Villanueva said.
Collaborating with fintechs also helps in addressing financial inclusion gaps besetting the country today, as 69% of the population remains unbanked and only 1% of payments are done electronically.
“There is a huge opportunity for fintech players to push their platforms that will address these gaps, and likewise, for banks to expand the reach of their products and services without heavy capital expenditures,” Villanueva noted.
Such is the case for current FINTQ bank partner Land Bank of the Philippines, which has deployed the LANDBANK Mobile Loan Saver (LMLS) solution to digitize the salary loan application process for government employees. Using only their mobile phones, employees can apply for a salary loan and get quick approval updates within hours.
Through LMLS and mobile technology, LANDBANK significantly accelerated its salary-based lending velocity by as much as seven times, allowed 20% of applicants to apply for a loan outside banking hours, and reached 23% of borrowers in low-income cities and municipalities where no brick-and-mortar branch is present.
For the past 17 months since LMLS was launched in January 2015, LANDBANK’s digital loan facility has already disbursed in excess of P8.72 Billion with over 1,100 participating government agencies. It has since expanded to cover employees in the private sector and even Globe subscribers, making it a telco-agnostic digital lending facility.
Addressing millennial habits
In the same vein, financial institutions face a growing challenge to accelerate their digital transfromation in light of tectonic changes in the consumer landscape, driven by digital-savvy “millennials,” a third of which do not believe they need a bank at all, according to the 2015 Millennial Disruption Index, putting banks at the highest risk of consumer disruption.
“At the end of the day, financial institutions must embrace the challenge of digital evolution to keep their relevance in the market. And the good news is, Philippine fintech companies are ripe and ready to collaborate,” Villanueva added.
FINTQ provides consumer-centric and demand-driven innovative digital platforms, products and services for financial and non-financial institutions across underserved, unserved and banked customers. These cover digital lending, disbursements, micro-savings, micro-insurance, NFC contactless and online payments, and, anti-fraud and card control solution, among others.
For more information about FINTQ and its suite of platform and services, visit www.fintq.com. [END]
by Sonia Vasquez | Sep 21, 2016 | Uncategorized
[12 JULY 2016/MANILA] – Salary loans released in June alone through the LANDBANK Mobile Loan Saver (LMLS) reached close to P1-billion following the program’s expansion allowing subscribers of all mobile networks and employees from the private sector.
Developed for the Land Bank of the Philippines (LANDBANK) by FINTQ, the financial technology unit of Voyager Innovations under the PLDT group, LMLS’ paperless and fully electronic salary loan system disbursed salary loans amounting to over P4 billion for the first half of the year, more than double from the same period last year.
In his speech at the Business World Economic Forum held today at Shangri-la at The Fort in Taguig City, Manuel V. Pangilinan, Chairman of PLDT, Smart, Voyager Innovations and FINTQ referred to LMLS and the role of financial technology in enabling financial inclusion. “This technology solution can disrupt the industry dynamics, by enabling anytime, anywhere convenience for consumers of financial products. And since it reaches a great majority of our people, they help in financial inclusion.”
“The growth in loan applications through LMLS is a testament to the power of mobile technology in empowering our customers, this time by providing access to loans when they need it the most,” said Gilda E. Pico, President and CEO at LANDBANK.
“LMLS helps us to fulfill our financial inclusion mission by enabling Filipinos convenient access to financial services, whenever and wherever they may be, and no matter what their circumstances are in life,” Pico added.
“With more than 100% penetration in the country, mobile devices are the easiest way to reach the unconnected, unbanked and uncarded sectors of society and bring them the benefits that various financial products offer. We are a proud partner of LANDBANK in this endeavor, and we’re working toward creating more innovations that will benefit majority of Filipinos,” added Orlando B. Vea, President and CEO at Voyager Innovations, the digital innovations arm of PLDT and Smart.
Further expansion
Since it was launched in January 2015, the LMLS program has disbursed close to P10 billion in salary loans processed from more than 65,000 borrowers excluding teachers, military and police personnel from over 1,100 accredited government agencies and its branches nationwide.
In the same period, loan applications from Luzon rose by more than 400%, although remarkable growth was also recorded in the Visayas and Mindanao which grew over 100% and almost 300%, respectively. Almost two-thirds of the borrowers came from outside Metro Manila.
“LMLS is proof positive that collaboration between banks and fintech companies in emerging markets–or what we like to refer to as ‘finbiosis’– is critical in bridging financial inclusion gaps in the country. We’re happy that LANDBANK is leading this charge, reaching out to the unbanked and underserved sectors of society, as together we help spread the benefits of a growing digital economy,” explained Lito Villanueva, CEO at FINTQ.
According to Villanueva, the H1 2016 performance of LMLS is a result of the program’s expansion to accommodate a higher number of borrowers from more geographical locations, from among more telco subscribers and industries, and now accommodating private-sector employees. Soon, the mobile loan facility will also be available to overseas Filipinos,owners of micro, small and medium enterprises as well as farmers and fishers in the agriculture sector.
“With more than 20% of loan applications now originating from 3rd to 6th class cities and municipalities and with a majority of the applicants are rank and file employees, the salary loan program continues to reach borrowers in the grassroots. Our financial inclusion mission is now on a rapid march,” added Villanueva.
Growing the pie — Fintech and the coming of age of Millennials
More mobile loan applications are also being received from borrowers aged 18 to 35 years – the so-called “millennial” generation. With at least 1-in-5 applications logged outside office hours, there is further evidence of shifting behaviors.
“The increasing number of customers applying outside banking hours through this digital channel indicates that mobile is ultimately becoming a customer touchpoint of choice. This translates to cost savings for banks while ultimately generating incremental business by accelerating new-to-bank volume. It clearly grows the pie,” Villanueva stressed.
Customers easily apply and inquire about their loans using their Smart, TNT, Sun, and Globe mobile phones and get fast credit decision from LANDBANK regarding their application.
The positive uptake of LMLS is validating an acute consumer market need that also compelled FINTQ to introduce Lendr (www.lendr.com.ph), the country’s first digital lending solution consumer loans which is expected to enable more banks and financial institutions to leverage on digital and mobile technologies. END
by Sonia Vasquez | Sep 21, 2016 | Uncategorized
From gov’t salary loans, now also for farmers and fishers, micro and SMEs, overseas Filipinos and private sector employees
[April 6, 2016/ Manila] – More Filipinos can now conveniently avail of loans from the country’s premiere government financial institution as the Land Bank of the Philippines (LANDBANK), together with leading tech company Voyager Innovations, expands the LANDBANK Mobile Loan Saver (LMLS) program beyond its initial market of government employees. LMLS will now cover loans for farmers and fishers, small and medium enterprises, overseas Filipinos and private sector employees.
LANDBANK is initially setting aside over P50-billion loan portfolio allocation for the expanded program. The digital and mobile platform from Voyager Innovations will continue to serve as the enabling technology.
“Following the continuous success of our LMLS program, we are scaling up so we can serve more Filipinos through digital technologies. This is in line with our mission of enabling financial inclusion by getting more people to use electronic transactions and aligned with the government’s National Strategy for Financial Inclusion,” said Gilda E. Pico, president and CEO of LANDBANK.
“Digital financial services in the Philippines are off to a big start, led by a progressive partner-advocate in Landbank. We are happy to enable the bank’s extension of these services to help more sectors of the population,” said Orlando B. Vea, president and CEO, Voyager Innovations.
“We congratulate LANDBANK for this expanded program as it is another breakthrough in the shift of consumers in using digital financial services. This is paving the way for a better and more democratized access to the banking system,” said Manuel V. Pangilinan, Chairman of Voyager Innovations, the digital innovations unit of PLDT and Smart Communications, Inc. (Smart).
Expanding loan program for growing sectors
Pico attributed the expansion in loans to consistent efforts to further strengthen its credit support, particularly for key sectors and projects with high development impact.
“Pursuing LANDBANK’s social mandate remains the core of our operations as we continue to pour our resources in favor of the Bank’s priority sectors including farmers and fishers, and microenterprises and SMEs. Alongside our thrust to be financially viable and competitive, we strive to keep our focus in bringing access to credit to the marginalized sectors and other development players,” said Pico.
“Digitizing all these loan processes would bring about further cost and operational efficiencies for faster, cheaper, safer and fully transparent banking transactions and these would ultimately benefit our customers,” she added.
In 2015, LANDBANK’s outstanding loans to its priority sectors reached P384 billion, representing a record-high share of 88.3 percent against the Bank’s loans to all sectors of P434.8 billion. These identified priority sectors comprise of small farmers/agrarian reform beneficiaries and fishers (SFFs) and their associations, microenterprises and SMEs, agri- and aqua-businesses, agri-aqua related projects of LGUs and GOCCs, communications, transportation, housing, education, health care, environment-related projects, tourism, utilities, and livelihood loans.
LANDBANK remains the biggest credit provider to small farmers and fishers and local government units, and the biggest lender to microenterprises and SMEs among government financial institutions.
Financial services now digital
The expanded LMLS program is a result of the stellar performance of the original LMLS service, launched in September 2014 and touted as the country’s first electronic salary loans program. The initial offering was limited to salary loans for government employees.
As of end-March 2016, total loans processed and released under LMLS amounted to over P7.2 billion since launch in January 2015. This corresponds to 49,180 loan applications from government employees under 1,019 agencies. The first three months of 2016 alone, loans processed amounted to more than P1.9-billion, more than 100 percent increase for the same period in 2015. Average loan per borrower is at P147,000.
The service is also benefitting rank and file government employees, as this customer segment accounts for 73 percent of total loans availed to date. Majority or around 59 percent of those who availed of loans through LMLS came from outside Metro Manila and the percentage is fast growing. It is also making inroads in reaching out to the grassroots in 3rd to 6th class municipalities with 21 percent of all loans coming from that lower-income areas as of end-March 2016 compared to just 15 percent by end-December 2015.
An “always-on” and “always-connected” consumer market
The trend from LMLS data also points to an increasingly connected digital market. Because the program provides a 24/7 digital convenience, over 20 percent of loan applications processed were received outside banking hours.
“Most Filipinos have already adopted mobile and digital technologies in their daily lives and it’s natural to extend this to banking services. As people grow more confident in the accessibility, security, and convenience provided by digital channels, we see more uptake of LMLS and similar services,” said Lito Villanueva, managing director and head of fintech, digital inclusion and alliances at Voyager Innovations.
Under LMLS, customers can easily apply and inquire about their loans using their Smart, Sun, Talk ‘N Text – and soon, Globe, TM and ABS CBN Mobile subscribers – and get quick credit decision from LANDBANK regarding their application.
With the positive uptake of LMLS validating an acute consumer market need, Voyager Innovations has also introduced Lendr, the country’s first online marketplace for consumer loans which is expected to launch soon to enable more banks and financial institutions to leverage on digital and mobile technologies.
Voyager Innovations is the digital innovations arm of PLDT and its wireless unit, Smart Communications, Inc. (Smart) focused on delivering platforms for the emerging digital economy. On top of fintech, among the areas of digital life that it is focusing on are digital commerce, digital payments and next communications. For more information, visit www.voyagerinnovation.com. END
