DIGITAL lender Billease on Wednesday said that it had injected P500 million into its banking arm and committed another P500 million by year-end as it accelerates plans to offer banking products alongside credit services.
The fresh capital infusion into the Rural Bank of Sta. Maria-Ilocos Sur (RBSM) was said to mark the second phase of a growth strategy that seeks to build regulated banking services on top of an existing digital lending platform.
Once the second tranche is completed, total capitalization of the bank will exceed P1 billion.
“We have built a strong, profitable digital lending business but our customers need more than credit,” Billease co-founder and CEO Georg Steiger said.
“The bank gives us the foundation to serve them better, with savings, deposits and a fuller set of everyday financial services. We are investing deliberately in governance, systems and processes because a strong foundation is what allows us to scale responsibly,” he added.
Dennis Valdes, president and CEO of the Rural Bank of Sta. Maria-Ilocos Sur, said the capital infusion comes at a crucial stage of the institution's transformation.
"We are in the midst of a comprehensive upgrade of our core systems as we prepare to launch our banking services,” he said.
“This capital provides the foundation to accelerate the rollout of new products that build on the Billease group's promise of fast, safe and reliable financial access for millions more Filipinos."
Billease said it had spent the past months preparing the bank for the launch of digital banking products through upgrades in governance, compliance systems and technology infrastructure.
The funds will be directed toward three key areas: modernization of the bank's core systems, strengthening of capital and governance framework, and development of new digital banking products.
Steiger said the infrastructure upgrade would allow the bank to operate on a scalable digital-first platform.
Part of the investment will also reinforce risk management, compliance and governance mechanisms to ensure alignment with regulatory standards.