BUY NOW, Pay Later (BNPL) platform Billease seeks to boost its loan book to P15 billion after acquiring Rural Bank of Sta. Maria-Ilocos Sur (RBSM), executives said Thursday.

“On the lending side, this year will end somewhere around P10 billion plus,” Billease co-founder and Chief Executive Officer Georg Seiger said in a speech on Thursday. “Next year, [it will] probably be around P15 billion, and P20 billion the year after.”

If the bank begins operations in the third quarter next year or the offering goes online, growth in 2026 is expected to be modest, with rapid expansion planned for 2027, he added.

Earlier this month, Billease acquired over 90% of RBSM to combine its technology with the bank’s license and create a “digital-centric banking app,” with services expected to launch by the third quarter next year.

Since its 2017 launch, Billease has disbursed over P100 billion in loans to more than 10 million customers. RBSM, founded in 1969, is pursuing digitalization under new CEO Dennis Valdes.

“We will start by launching around Q1 as one of Billease’s main lending partners,” Mr. Valdes said. “But Q3 will be much more exciting. This is where we will strengthen our presence online. So now we will have banking services available in the Billease app, and this will improve digital access not only for our ecosystem, but for anybody or for any Filipino that really wants to have the best banking service.”

The bank plans to offer high deposit rates and free fund transfers by the third quarter next year.

Billease Merchant Products Head Kurt Molina said integration with GooglePay is expected in the first quarter and ApplePay in the second. Debit and credit cards could follow within two years.

RBSM will retain its rural banking license, though a larger license could be pursued later, Mr. Steiger said. “We see this more as a digital-centric offering rather than a traditional bank. We still have a branch.”

Executives highlighted Billease’s lending-first approach as a competitive edge over other digital banks, which often prioritize deposits to increase their customer base.

Many digital banks started heavily on the deposit side, but lending takes time to scale, Mr. Steiger said.

“We have a lending business that works, that is profitable, and that has a certain scale,” he said. “The bank can deploy these deposits right away without taking any crazy risks.”

While operating one branch, the bank may expand physical touchpoints as its assets grow. “The branch has 56 years of history in its community… and will benefit from additional capital and technology. Some Filipinos still prefer the option of going to a branch,” he added. — Aaron Michael C. Sy

RELATED ARTICLESMORE FROM AUTHOR