Maya Bank Inc., the digital banking arm of PLDT Inc., is making significant strides towards profitability, driven by a surge in its lending operations and a growing customer base. The positive cash flow recorded in the second quarter of the year marks a key milestone for the bank as it edges closer to its financial goals.
The bank’s financial performance in the first half of 2024 has shown a marked improvement, with a notable reduction in operational losses for its parent company, Maya Innovations Holdings Pte. Ltd. PLDT reported a 42% decrease in losses related to Maya, from P1.2 billion in the first half of 2023 to P0.7 billion in the same period this year.
This trend reflects not only an annual improvement but also positive developments on a quarterly basis.
One of the key drivers behind this turnaround is Maya Bank’s expanding lending operations. The bank disbursed P46.8 billion in loans during the first half, contributing significantly to its positive cash flow in the second quarter of this year.
This achievement underscores Maya Bank’s growing influence in the digital lending and financial technology (fintech) sectors.
Maya Bank’s strategic partnerships fueling growth
Maya Bank’s success is also attributed to strategic collaborations with its parent company, PLDT, and its sister firm, Smart Communications Inc., a leading telecommunications provider in the Philippines.
These partnerships have enabled Maya Bank to offer financing for 5G-capable devices, making advanced technology more accessible to Filipinos.
This initiative not only drives loan disbursements but also strengthens the bank’s position in the market.
In addition to consumer lending, Maya Bank has extended its reach in the fintech space through a significant partnership with Tala, a well-known lending platform.
In May, Maya Bank also provided P2.75 billion in capital for Tala’s lending operations, further solidifying its presence in the digital finance ecosystem.
Charisse Alvarez, President and Head of Finance for Tala Financing Philippines, expressed elation for the partnership, saying, “We are thrilled to partner with Maya Bank in this endeavour, knowing that their mission and values are well-aligned with Tala’s. We consider this a milestone in our commitment to become an accessible, reliable and trusted partner to our customers, one that helps them build financial resilience, stability, and ultimately, wealth,” she said.
Path to profitability: Expanding customer base and deposit growth
Maya Bank’s efforts have translated into a rapidly growing customer base. As of June 2024, the digital bank has attracted nearly four million customers, a testament to its appeal in the increasingly competitive digital banking sector.
Alongside this growth in customers, the bank’s deposit balance has also surged to P32.8 billion, reflecting strong consumer trust and engagement.
A key factor behind this growth is Maya Bank’s innovative approach to interest rates and rewards for its savings products. By tailoring interest rates based on customer spending patterns and offering attractive rewards, the bank has successfully incentivized savings and expanded its customer base.
Beyond its core banking services, Maya Bank plays a significant role in facilitating digital transactions across the Philippines. The bank is a leading online transaction processor and holds the largest market share in card acquisition.
Additionally, Maya Bank is the top facilitator of QR Ph payments, the national standard for QR code payments in the country. This leadership in digital transactions not only enhances Maya Bank’s revenue streams but also positions it as a key player in the digital transformation of the Philippine economy.
The combination of strong lending growth, strategic partnerships, and a rapidly expanding customer base positions Maya Bank on a promising trajectory toward profitability. With operational losses shrinking and cash flow turning positive, the bank is demonstrating that its business model is both sustainable and scalable.
Maya Bank’s success also reflects the broader trend of digital transformation in the Philippine banking sector, where traditional financial institutions are increasingly adopting technology-driven solutions to meet the evolving needs of consumers. As Maya Bank continues to innovate and expand its offerings, it will likely play a pivotal role in shaping the future of banking in the Philippines.
In the end, Maya Bank’s recent achievements only highlight its potential to become a profitable and influential player in the digital banking and fintech sectors. As the bank continues to build upon its successes, it is well-positioned to contribute to PLDT’s overall financial health while providing valuable services to millions of Filipinos.