Philippine fintech receives fresh funding, plans setup of digital bank

Philippine fintech startup Voyager Innovations has raised $167 million in a funding round from its existing shareholders, the Philippines’ largest telecom and Internet provider PLDT, US private equity firm KKR and Chinese tech giant Tencent Holdings, PLDT said in a stock exchange filing on June 28.

Further, IFC Financial Institutions Growth Fund, a fund managed by the IFC Asset Management Company, which is a division of World Bank Group member International Finance Corporation, participated in the funding round.

The funds will be used for Voyager’s expansion programme, including a venture into digital banking through its financial technology arm, PayMaya Philippines.

Voyager, which claims to serve 38 million Filipinos through its consumer platforms that currently comprise e-wallets and digital payments, applied for a digital banking license with the Philippine central bank, which has so far granted three firms approval to operate in the country.

Ending low financial inclusion with digital services

Only a third of Filipinos have a formal bank account, among the lowest in Asia, giving fintech firms an attractive leeway for growth. Of those who have loans, only three per cent have borrowed from banks, and more than 77 per cent and 75 per cent of the population do not have insurance and investments, respectively.

The country’s central bank aims to digitalise 50 per cent of the total volume of retail payments and expand the share of financially included persons to 70 per cent of Filipino adults by 2023. This is where PayMay’s business is positioning itself.

“As we did with payments and remittances, we will enable the large masses of Filipinos to leapfrog into a new stage of financial inclusion through integrated digital financial services. Our goal is to continue making lives better for millions of underserved people and small businesses, with cutting edge solutions that are affordable and relevant,” Voyager and PayMaya president Shailesh Baidwan said.

Serving the unbanked and micro, small and medium companies

PayMaya currently offers financial transactions to add money, cash out, make payments and remit funds through more than 250,000 digital-finance access touchpoints, seven times the number of the ATMs and bank branches in the country, Baidwan said, adding that this expanded access would be significant for an archipelagic nation where 33 per cent of cities and municipalities do not have any banking presence.

Voyager through PayMaya will also venture further into the financial businesses with micro, small, and medium-sized enterprises and provide innovative payment and financial services, he added.



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Philippine fintech startup Voyager Innovations has raised $167 million in a funding round from its existing shareholders, the Philippines' largest telecom and Internet provider PLDT, US private equity firm KKR and Chinese tech giant Tencent Holdings, PLDT said in a stock exchange filing on June 28. Further, IFC Financial Institutions Growth Fund, a fund managed by the IFC Asset Management Company, which is a division of World Bank Group member International Finance Corporation, participated in the funding round. The funds will be used for Voyager’s expansion programme, including a venture into digital banking through its financial technology arm, PayMaya Philippines....

Philippine fintech startup Voyager Innovations has raised $167 million in a funding round from its existing shareholders, the Philippines’ largest telecom and Internet provider PLDT, US private equity firm KKR and Chinese tech giant Tencent Holdings, PLDT said in a stock exchange filing on June 28.

Further, IFC Financial Institutions Growth Fund, a fund managed by the IFC Asset Management Company, which is a division of World Bank Group member International Finance Corporation, participated in the funding round.

The funds will be used for Voyager’s expansion programme, including a venture into digital banking through its financial technology arm, PayMaya Philippines.

Voyager, which claims to serve 38 million Filipinos through its consumer platforms that currently comprise e-wallets and digital payments, applied for a digital banking license with the Philippine central bank, which has so far granted three firms approval to operate in the country.

Ending low financial inclusion with digital services

Only a third of Filipinos have a formal bank account, among the lowest in Asia, giving fintech firms an attractive leeway for growth. Of those who have loans, only three per cent have borrowed from banks, and more than 77 per cent and 75 per cent of the population do not have insurance and investments, respectively.

The country’s central bank aims to digitalise 50 per cent of the total volume of retail payments and expand the share of financially included persons to 70 per cent of Filipino adults by 2023. This is where PayMay’s business is positioning itself.

“As we did with payments and remittances, we will enable the large masses of Filipinos to leapfrog into a new stage of financial inclusion through integrated digital financial services. Our goal is to continue making lives better for millions of underserved people and small businesses, with cutting edge solutions that are affordable and relevant,” Voyager and PayMaya president Shailesh Baidwan said.

Serving the unbanked and micro, small and medium companies

PayMaya currently offers financial transactions to add money, cash out, make payments and remit funds through more than 250,000 digital-finance access touchpoints, seven times the number of the ATMs and bank branches in the country, Baidwan said, adding that this expanded access would be significant for an archipelagic nation where 33 per cent of cities and municipalities do not have any banking presence.

Voyager through PayMaya will also venture further into the financial businesses with micro, small, and medium-sized enterprises and provide innovative payment and financial services, he added.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

 

 

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