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Lendr – Fintech of the Year, Philippines - Lending marketplace in the Philippines takes flight
Darryl Yu 22 Feb 2017
While developed markets in Asia such as Hong Kong and Singapore have relatively easy access to financing, the emerging market world of Asia still has some way to go. This is the case in the Philippines where according to the Banko Sentral ng Pilipinas (BSP) 36% of the country’s 1,634 cities and municipalities do not have a single banking presence. With a good portion of the country’s population lacking basic financial services, technology platforms such as online loans marketplace provider Lendr has been one of the leaders in promoting financial inclusion within the country.

Digital-Awards-Leadership-Profiles-Villanueva

 
“For the past 12 months we have owned the digital lending space in the Philippines. Our platform is a homegrown Philippine developed platform across banks and non-banks,” states Lito Villanueva, managing director and CEO of FINTQ. As the loans platform of FINTQ, the financial technology unit of Voyager Innovations, Lendr was originally based on Land Bank of the Philippines’ Mobile LoanSaver system. Under the initial process Land Bank was able to allow its customers to apply for loans electronically. “Our digital lending platform has enabled our partner Land Bank to generate much higher loan velocity of as much as 12 times following our engagement with them.” recalls Villanueva.
 
Since the Land Bank project, Lendr has grown its portfolio of institutions on its platform to include domestic Filipino banks such as China Bank Savings and RCBC Savings Bank. Moreover, the platform has teamed up with the 497-member Rural Bankers Association of the Philippines and the 54-member Chamber of Thrift Banks aiming to create a grassroots atmosphere across the country.
 
"We are in the process of onboarding a number of banks and non-banks in around the country. The numbers have actually been very encouraging. In fact the concern right now is how to onboard as many banks as possible,” explains Villanueva. The numbers have actually been very encouraging. At the end of December last year for example, Lendr announced a partnership with business financing company First Circle to boost its loan coverage with small and medium enterprises (SMEs).
 

Lendr

The key to Lendr’s advantage towards borrowers is transparency and greater visibility of loan options. Under the system users, similar to customers shopping in a grocery store, can choose the type of loan products they want to best suit their needs. The system allows borrowers to compare loan rates, promotions and offers from multiple lenders. Leveraging on Amazon Web Services’ cloud platform Lendr is also able to provide its users with up to date information on the status of their loan application at any point. Once approved the system will keep track of your loan repayments and amortization. 
 
“About 7 out of 10 borrowers we have come from the provinces and of that number around 35% of the borrowers were from low-income cities and municipalities,” highlights Villanueva. “Around 47% of our loan applications are done outside banking hours indicating the need for 24/7 access to finance. Moreover, we have dispersed more than US$306 million in loans during the past 24 months.”
 
For Villanueva the platform is not only an empowerment tool for the borrower but also a way to level the playing field for lesser-known financial institutions within the Philippines. “We are pushing for a marketplace experience because this will actually level the playing field. Even rural banks or cooperatives that are not as big as the commercial and universal banks could now be on par with the rest of the other banks in the industry. Technology is indeed a great equalizer.” he says.
 
The platform has even obtained the green light of the BSP. “The Bangko Sentral ng Pilipinas (monetary regulator) has been very supportive of this kind of initiative as this supports the country's advocacy in promoting financial inclusion. It’s something they would want to promote leveraging on digital finance for transparency and to further expand the access to finance.” notes Villanueva. Lendr was the first-ever approved cloud-based system by the BSP.
 
In terms of future plans for Lendr, Villanueva and his team aims to grow the amount of participants on the platform to give their users additional flexibility in financing. “Due to the robustness of the platform we can accommodate as many banks as possible. We are now in discussions and signed some MOUs with a few financial institutions in Southeast Asia and South Asia,” he shares.
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