Philippines neobank Netbank has formed partnerships with 3 alternative lenders; Global Mobility Services (GMS), New Cross Credit Gate PH Inc. (Uploan) and Inclusive Financial Technologies, Inc. (Blend PH).
This move will allow these lenders to expand their lending without needing to raise additional capital. By removing a layer of banking, Netbank said that it creates a more efficient balance sheet structure that ultimately benefits Filipino borrowers.
The lenders will identify clients and pass these clients to Netbank, who will fund and book the loans on its balance sheet.
Netbank will continue to expand its program of partnership with Filipino alternative lenders and expects to sign-up several new partners in the coming few months.
Netbank is focusing on supporting responsible lending and will avoid all forms of loans with usurious interest rates.
“We see huge opportunities to expand our lending program through alternative lenders in the coming years. We expect the alternative lending market to be $1bn (PhP50bn) in 2024 and $2bn (PhP100bn) in 2026.
Netbank will be a major contributor to this growth. As a bank, we are very aware of our responsibility to all our stakeholders and so will only lend to lower risk segments at reasonable interest rates.”
said Jaymar Mendoza, Head of Operations of Netbank.
Featured image credit: Edited from Unsplash
