MANILA, Philippines - Loans made under the electronic facility put up by the Land Bank of the Philippines (Landbank) and a unit of Smart Communications Inc. continued to increase since its launch in January this year.
In a statement, Smart said loan disbursements under Landbank’s Mobile Loan Saver have reached more than P4 billion following the facility’s launch in January.
These were released to 27,800 borrowers coming from 610 participating national government agencies, government owned and controlled corporations, and local government units. Average loan per borrower stood at P144,000.
“We’re seeing a positive shift to mobile and digital for the consumer loan market as they provide convenience and easier access to financial services,” Orlando B. Vea, president and CEO of Smart’s Voyager Innovations, said.
“Our successful experience with the Landbank Mobile Loan Saver in less than a year is reflective of this progress and we are seeing this accelerate in the coming months,” Vea said.
The Mobile Loan Saver allows government workers to apply for loans by sending text messages through their Smart, Sun, or Talk N Text numbers. The applicant, then, receives a notification and an e-mail for electronic documents they need to accomplish online.
When approved, applicants will receive the funds in their Landbank payroll account within three banking days. Payment for the loans, meanwhile, are automatically debited from the borrower’s payroll account every pay day.
SMS notifications on transactions are also received by the borrower to keep track of his loan activities.
“This program has started making a significant impact in the government’s efforts to promote electronic transactions for transparency, cost efficiency, security, affordability, accessibility, and convenience,” Gilda E. Pico, Landbank president and CEO, said.
“Leveraging on mobile technology is a must for any service-oriented institution to have wider reach in providing broader financial access to its customers. We are extending this program to the private employees early next year,” she added.