OFBank may offer digital loans

LAND BANK of the Philippines (LANDBANK) is looking at offering digital loans through its digital arm Overseas Filipino Bank (OFBank).

“We are actually considering that (digital loans). We’re looking at it. As of right now, the loans of OFBank are mostly salary loans. But we are taking a serious look and making sure first that we have the proper risk framework, because that’s something a lot of digital banks are struggling with,” LANDBANK President and Chief Executive Officer Lynette V. Ortiz told reporters on the sidelines of a central bank event on Friday.

The bank is targeting to have the study done within the first six months of the year, Ms. Ortiz added.

“You have a deposit base, you have funding, but you also have to be very circumspect around how you’re going to roll out loans and just make sure that you have the proper risk management framework in case,” she said.

“We’re really looking to put more legs in terms of the strategy for OFBank,” Ms. Ortiz added.

OFBank currently offers three loan products.

OFBank is a subsidiary of LANDBANK and is the official digital bank of the government.

It is one of the six Bangko Sentral ng Pilipinas (BSP)-licensed digital banks in the country.

In the third quarter of 2023, LANDBANK’s net income rose by 24% year on year to P31.85 billion amid higher loans and yields from its investments. This made up 90.9% of its P35-billion profit target for the year. — AMCS