The Land Bank of the Philippines (Landbank) is rolling out a P1-billion lending program to empower countryside financial institutions (CFIs) to digitalize their banking operations to reach and service more underserved and unbanked Filipinos.
Through the Digitalization of Countryside Financial Institutions (DIGI-CFI) Lending Program, Landbank will finance digitalization projects, including payment for subscription or licensing fee for commercial software or outsource information technology (IT) systems.
Under the Program, Landbank can also finance the acquisition of hardware or computer equipment and purchase or development of commercial software, application, or system, including maintenance and support.
Landbank President and CEO Cecilia C. Borromeo highlighted the importance of digital transformation for CFIs to remain resilient and relevant amid the evolving banking landscape, during the 69th Annual National Convention and General Membership Meeting of the Rural Bankers Association of the Philippines (RBAP) on 27 May 2022 in Dapitan City, Zamboanga del Norte.
“Landbank aims to boost the capacity of rural banks to contribute to the digitalization wave. The possiblities for growth are endless, with the end goal of promoting financial inclusion and providing innovative and responsive digital financial services,” said President Borromeo.
Under the DIGI-CFI Lending Program, rural, thrift and cooperative banks can borrow up to 80 percent of their total project cost with an interest rate of 5 percent per year for term loans, fixed for the first year and subject to re-pricing thereafter, and payable up to five (5) years.
For short-term loans, the prevailing rate of Landbank at the time of availment applies, but not lower than 5 percent per annum, payable up to one (1) year, and available via a 180-day Promissory Note.
As of end-April 2022, Landbank’s outstanding loans reached P9.66 billion in support of 88 rural financial institutions nationwide, underscoring the Bank’s steadfast commitment to advance financial inclusion and countryside development.
Landbank earlier said it facilitated a total of 39.14 million transactions amounting to P567.61 billion from its major digital banking channels in the first three months of 2022–translating to a 36 percent and 22 percent year-on-year growth in volume of transactions and value, respectively.
“Landbank’s digital transformation is geared towards providing accessible financial services to meet the growing needs of our customers. We are also driven towards greater digital adoption to advance financial inclusion in the country, in line with our expanded mandate of serving the nation,” said Borromeo.
She added that the demand for Landbank’s digital services continue to rise as more customers shift to using more convenient, reliable, and safe digital banking solutions, especially in the new normal.
In particular, the Landbank Mobile Banking App (MBA) recorded 29.75 million transactions worth P47.18 billion for the first quarter of the year, or upsurges of 37 percent in volume and 46 percent in value, year-on-year.
The Landbank weAccess–the Bank’s corporate internet banking platform–recorded more than six million transactions worth nearly P143.19 billion, which translates to growths of 37 percent and 25 percent, respectively.
Meanwhile, the bank’s web-based payment facility, Link.BizPortal, facilitated around 1.38 million transactions equivalent to a 42 percent increase with corresponding total value of P3.41 billion or 58 percent growth rate.
Landbank’s online retail banking channel, iAccess, also logged a 26 percent jump in transactions value, at P4.46 billion compared to the P3.55 billion in the same period last year.
The Landbank Electronic Modified Disbursement System (eMDS) for national government agency partners also posted an increase of 36 percent in transactions volume amounting to P368.06 billion, or 18 percent rise in value.
