To highlight the “efficiency” of its product, the Land Bank of the Philippines (LANDBANK) stated that it will be reducing transaction fees for its electronic fund transfer (EFT) service to just P15 starting June 15.
LANDBANK further stated that regardless of the number of fund transfers made using InstaPay, charges would still be subject to a fixed transaction fee of P15, down from the previous rate of P25. The move is also in line with the state lender’s goal of advancing financial inclusion in the Philippines.
IMAGE CREDIT: www.landbank.com
According to the bank, the reduction in transaction charges is a reaffirmation of their full support for the national government’s financial inclusion agenda.
“By lowering the fund transfer rate, more customers will benefit from the convenience and efficiency of our products,” said Lynette V. Ortiz, President and CEO of LANDBANK, in a press statement.
“This is part of our commitment to provide accessible and affordable digital banking solutions, and to help expand financial inclusion,” she added.
According to the state-owned lender, the decrease in LANDBANK’s InstaPay transaction charges is only meant to further underscore their “steadfast commitment to meeting the evolving needs of customers, in line with its expanded mandate of serving the nation.”
IMAGE CREDIT: www.landbank.com
Digital fund transfer is facilitated by the LANDBANK Mobile Banking App (MBA), iAccess for retail clients, and weAccess for Corporate Accounts. The three digital platforms have facilitated transactions amounting to a total of P265.7 billion in just the first three months of 2023.
LANDBANK to increase the volume and value of its digital transactions
In an effort to provide its customers with more convenient services, LANDBANK also stated that starting this year, the bank is aiming to increase the volume and value of its digital transactions by 60 percent on an annual basis.
Gauging from LandBank’s numbers last year, increasing the volume and value of its digital transactions could result in 93.48 million more transactions or a total of 249.28 million for an estimated P8.96 trillion in total value.
While stepping up efforts toward digital and inclusive banking, the bank also said it had enabled 155.8 million digital transactions last year, which resulted in an “unprecedented” value of P5.6 trillion.
The bank also noted that the number of digital transactions it processed since 2018 has since increased by 14 percent year over year, which more than doubled the amount it reported in 2021.
LANDBANK is by far the largest formal credit institution in rural areas. It also ranks among the top five commercial banks in the country in terms of deposits, assets, and loans.
As a government financial institution, it strives hard to strike a balance between fulfilling its social mandate of promoting countryside development while still remaining financially viable.
Over the years, LANDBANK has successfully managed this tough balancing act as evidenced by the continued expansion of its loan portfolio in favor of its priority sectors: the small farmers and fishers, a good part of which are agrarian reform beneficiaries; micro and SMEs; agri- and aqua-projects of local government units and government-owned and controlled corporations; communications, transportation, housing, education, health care, environment-related projects, tourism, and utilities.