UMVA has learned that a major infusion of capital has been made into a rural banking arm, with P500 million in funding being allocated to Rural Bank of Sta. Maria-Ilocos Sur, Inc. (RBSM) by consumer finance and buy now, pay later provider BillEase.
The substantial investment is part of a larger plan to add another P500 million later this year, propelling the total capitalization of RBSM to over P1 billion by the end of the year. This ambitious goal is set to revolutionize the bank's infrastructure, enabling scalable, digital-first banking operations.
According to information obtained by UMVA, the additional funds will be strategically utilized for core system modernization, capital strengthening and governance, and product innovation. This bold move is aimed at transforming the bank's capabilities, allowing it to offer a wider range of digital financial services.
BillEase aims to expand its current offering of consumer credit by launching digital banking products, including savings, deposits, and other financial services. This development marks the second phase of the company's growth strategy, focusing on building regulated banking services on top of its digital lending platform.
“We have built a strong, profitable digital lending business but our customers need more than credit,” said BillEase Co-founder and Chief Executive Officer (CEO) Georg Steiger. “The bank gives us the foundation to serve them better, with savings, deposits and a fuller set of everyday financial services.”
The investment has been met with enthusiasm from RBSM President and CEO Dennis Valdes, who expressed his gratitude for the strong vote of confidence. “We are deeply encouraged by this strong vote of confidence at a pivotal moment in our transformation,” he said.
BillEase acquired a significant stake in RBSM in November last year and plans to begin rolling out banking services by the third quarter of this year. The company, which has demonstrated remarkable growth, booked a net profit of P840 million last year as its revenues surged by over 80% to P9.3 billion.
The company's consumer loan portfolio has grown substantially, increasing by more than 75% year on year to about P11.9 billion. Year to date, BillEase has disbursed P130 billion in loans, showcasing its commitment to providing fast, safe, and reliable financial access to a wider audience.
