Lendr records P12 billion in loans amid demand from young adults
FINTQ, the financial technology arm of Voyager Innovations, Inc., saw growth in its loans in 2017 as it saw borrowers coming from the “starting out” segment.
In a statement sent to reporters on Thursday, FINTQ said its lending arm Lendr booked a loan volume of P12 billion in 2017, nearly “a third” higher than the volume recorded in the previous year.
This brings FINTQ’s total loan volume since its launch in 2015 to about P27 billion.
Angelito M. Villanueva, FINTQ managing director, said majority of its borrowers came from the “starting out” segment, or young adults who are just beginning with their careers.
“At this stage of their lives, they only have need for relatively simple financial products such as a transaction account and/or a credit card,” Mr. Villanueva was quoted as saying in the statement.
In terms of loan application types, Mr. Villanueva said majority came from salary loans, while he also saw a number of applications for microfinance and business loans.
“Lendr has the most expansive loan offerings. On top of the traditional salary, personal, home, and auto loan products, it offers mobile crop loan, medicine loan, MSME (micro-, small and medium enterprise) loan, overseas Filipino loan, and truck and equipment loan, among others.”
Meanwhile, eight out of 10 borrowers of FINTQ are from provinces, with nearly 26% residing in low-income communities. Mr. Villanueva said it only proves that “there is really a huge untapped market by formal financial institutions in rural communities.”
This is in line with the central bank’s National Strategy for Financial Inclusion, where it targets 30 million Filipinos to be included into the formal financial system by 2020.
KasamaKA, a grassroots-based program, was launched in September to provide financial services using a digital platform.
Meanwhile, FINTQ’s 2017 performance was bolstered by its partnerships with banks and nonbank institutions, as well as its regulatory support given.
“[A]pplications through Lendr registered the highest loan approval rate at around 40% last year due to ‘digital efficiencies,’” Mr. Villanueva noted.
As of December 2017, FINTQ has inked agreements with 70 financial institutions including the Land Bank of the Philippines, China Bank Savings, RCBC Savings Bank and Philippine Bank of Communications, among others.
Looking forward, FINTQ is set to launch “game-changing platforms” and enhance its digital lending initiatives.
“These will further galvanize our position in the industry as the leading fintech company with the largest digital footprint in the country,” Mr. Villanueva said, adding that they will also expand its operations outside the country.
Voyager Innovations is PLDT, Inc.’s digital innovations unit. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary Media Quest Holdings, Inc., has a stake in Business World through the Philippine Star Group, which it controls.