by Jan Michael Carpo, Reporter
Maya, the fast-growing financial platform run by Filipino business tycoon Manuel V. Pangilinan, is set to close the year on a high note.
In a press briefing, Hong Kong-based investment holding company First Pacific Co. disclosed that the company may be expected to achieve profitability by the end of this year, marking a significant milestone in the platform’s expansion efforts.
First Pacific, which holds a 25.6% economic stake in Philippine telecom giant PLDT, has been closely monitoring Maya’s performance. The fintech ecosystem, which comprises a digital bank, a digital wallet, and a merchant acquisition company, has been making steady strides in reducing losses and boosting its market presence.
Maya: Reducing losses, boosting growth
Maya’s financial performance has seen a sharp improvement compared to the previous year. According to First Pacific, Maya’s losses amounted to ₱700 million in the first half of 2024, down from ₱1.2 billion during the same period in 2023.
This reduction in losses signals the company’s ongoing efforts to streamline operations, optimize its product offerings, and capture a larger share of the Philippine fintech market.
One of the company’s key growth strategies includes enhancing its lending solutions, with a focus on supporting PLDT and its subsidiary Smart by providing device financing solutions.
Maya Bank, the digital banking arm of the platform, has also contributed to the platform’s positive momentum by generating positive cash flow during the second quarter of 2024.
Dominating the digital banking sector
Maya Bank has solidified its leadership position in the digital banking market in the Philippines, attracting a broad customer base through its innovative and inclusive banking products.
As of June 2024, the bank boasted four million depositors, with total deposits reaching ₱32.8 billion. Its loan portfolio is equally impressive, with ₱46.8 billion in loans extended to 1.2 million borrowers. Then in August, the company also announced near profitability as its digital lending and fintech ventures started to flourish this year.
The digital bank offers various lending products, catering to consumers and small to medium-sized enterprises (SMEs). These products include micro-loans for individuals and small businesses, flex loans for SMEs, and a variety of consumer loans designed to address the diverse financial needs of its users.
The company’s success can be attributed, in large part, to its focus on providing financial services to underserved segments of the population. Millennials and Gen Z also make up most of Maya’s user base, accounting for 85% of its consumers.
Sixty per cent of the digital bank’s borrowers, in fact, are loyal customers who rely solely on the platform for their banking needs.
Path to profitability and future plans
While Maya is still playing catch-up to GCash, the country’s leading digital wallet provider, it is carving out a niche in the digital banking space. PLDT Chairman, President, and CEO Manuel V. Pangilinan has acknowledged that the company’s strength lies in its digital banking operations, a competitive advantage that could fuel the platform’s future growth.
In light of Maya’s improving financial performance and robust customer base, the possibility of an initial public offering (IPO) has been raised. However, Pangilinan emphasized that the platform must first demonstrate sustained profitability and business viability before such a move can be seriously considered.
First Pacific’s latest report underscores Maya’s commitment to growth and profitability. The platform’s expansion into lending solutions and its partnerships with major corporations like PLDT are expected to further strengthen its position in the market.
Regulatory oversight and industry leadership
Maya Bank operates under the supervision of the Bangko Sentral ng Pilipinas (BSP), ensuring that its operations align with the country’s banking regulations.
This oversight has provided Maya with the stability and credibility needed to build trust among its users, allowing it to rapidly expand its reach and services.
As Maya approaches profitability, it stands poised to become a key player in the digital finance ecosystem in the Philippines. With its focus on innovation, customer-centric solutions, and strategic partnerships, Maya is well-positioned to capture a larger share of the rapidly evolving fintech landscape in the country.
In the end, Maya’s journey toward profitability in 2024 highlights the platform’s resilience and strategic growth. As it continues to expand its digital banking services and reduce losses, Maya is setting the stage for a strong future in the Philippine fintech sector.
With its focus on serving millennials, Gen Z, and SMEs, and its emphasis on innovative lending products, Maya is not only on track to become profitable but also to shape the future of digital finance in the Philippines.