MANILA, Philippines — The holding company of businessman Antonio Tiu has acquired a stake in a rural bank for his planned digital banking and microlending to farmers.
Earthright Holdings Inc. (EHI), the parent firm of listed AgriNurture Inc. (ANI), acquired a significant stake in Binangonan Rural Bank Inc. (BRB).
The investment will be made via subscription to the bank’s increase in capital and in partnership with an AusPhil Group.
The partnership will launch a full digital banking platform in the first half aimed at providing microfinancing to farmers.
BRB obtained an electronic money issuer (EMI) license from the Bangko Sentral ng Pilipinas (BSP).
ANI is led by Tiu, an agri-entrepreneur who ranks 49th in the 2019 Forbes Philippines rich list. It envisions an inclusive ecosystem that will empower the agricultural sector through the issuance of electronic agri vouchers (e-vouchers).
The partnership hopes to launch a borderless digital ecosystem with major anchor partners like ANI to provide a ready market for local produce in the e-commerce market place.
It will be launched side-by-side with the social lending platform.
Tiu said the cash-backed e-vouchers would allow farmers to buy what they need to produce crops from accredited online merchants.
ANI will then buy back the produce for the domestic market and credit payments to the farmers’ e-wallet for them to settle loans online or withdraw cash from any ATM nationwide.
Farmers can then tap their credit using their accredited smart phone apps. The database and credit scoring system is expected to transform rural banking experience for majority of the Filipino population, Tiu said.