[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
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