Globe Fintech, or Mynt, is the parent of GCash, the Philippines’ leading mobile payments service provider. / Bloomberg

The company behind the Philippines’ top mobile wallet GCash may seek a digital banking license as it boosts its lending business after Japan’s biggest bank invested in the fintech firm.

Applying for a digital banking license “is being discussed, although nothing is definite as of the moment,” Globe Fintech Innovations Inc. CEO Martha Sazon said in an interview with Bloomberg Television’s Shery Ahn and Haidi Stroud-Watts on Friday.

The Philippine central bank on Thursday said it approved the lifting of a moratorium on the grant of new digital banking licenses starting January next year, opening the door for four new slots on top of six existing licensees.

Globe Fintech, or Mynt, is the parent of GCash, the Philippines’ leading mobile payments service provider.

The possibility of securing a digital bank license comes as Mynt is moving to scale up its lending business following its latest investment round. Japan’s Mitsubishi UFJ Financial Group Inc. took an 8% stake and Ayala Corp. raised its ownership to 13% in transactions collectively worth around $800 million, which Ms. Sazon said is the biggest fintech deal in the Philippines.

That more than doubled Mynt’s valuation to $5 billion. The company is not actively considering new investors as it does not need additional funds at the moment, the CEO said, adding that an initial public offering may happen when market conditions “are right.”

“For the IPO, that’s always on the table, but our priority right now is really to sustainably grow the business,” she said.

Both Ayala and MUFG are expected to strengthen Mynt’s diversification from its core payment business. MUFG can help with “cheap cost of funds when it comes to lending,” Ms. Sazon said.

Mynt has disbursed P155 billion ($2.7 billion) in loans as of end-June, up 73% from a year ago, according to Globe Telecom Inc., which holds around 33% stake in Mynt. The number of its unique borrowers jumped 71% to 5.4 million during the same period.

Mynt’s lending business is focused on “small loans” and the company doesn’t compete with banks, Ms. Sazon said. “Who we compete with would be the loan sharks,” she added.

The company, which is present in 17 countries, also plans to expand its overseas business to cater to more Filipinos abroad, Ms. Sazon said. —Bloomberg

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