[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.
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