Ayala to create country's first mobile microfinance bank

MANILA, Philippines - Ayala Corp. will soon establish what it claims to be the Philippines’ first mobile microfinance bank, a move that intends to strengthen the conglomerate’s presence in the sector. Pilipinas Savings Bank—created by an agreement undertaken between Ayala’s lending and mobile phone units—will extend small loans to institutions using cell phones, the company said in a disclosure to the Philippine Stock Exchange (PSE). The new entity will be owned by the Bank of the Philippine Islands (BPI), Globe Telecom Inc. and Ayala. While BPI and Globe will each own 40 percent of Pilipinas Savings Bank, Ayala will hold the remaining stake. Besides having an authorized capitalization of P500 million, the lender’s already has subscribed capitalization of P350 million. It is currently seeking regulatory approval for its operations. Globe currently provides rural banks and microfinance institutions with G-Cash, which allows money transfers and loan collections using text messaging. BPI serves microfinance institutions through a wholesale lending program. - GMANews.TV