After Mynt IPO, GCash eyes digital banking

MANILA, Philippines — Listed e-wallet GCash is seeking to break another barrier as it works to bring more Filipinos into financial services, with plans to explore becoming a digital bank.

GCash head of capital markets and investor relations Joseph Samuel Tang said yesterday the e-wallet’s next step is to assess opportunities in the digital banking space.

Tang said GCash is ripe for a digital banking license because it has a strong payment platform and an emerging loan portfolio for small borrowers.

GCash processed P9.8 trillion in transactions from January to June, up by 23 percent from a year ago. Likewise, the e-wallet’s credit portfolio stands at P70.5 billion to date, and it manages a non-performing loan ratio of just 4.9 percent.

“Definitely, our opportunities are always considered together with the digital banking license. It is something that we constantly evaluate even up to today,” Tang said.

A digital banking license will mandate GCash’s parent Mynt Inc. to go up the same standards as traditional banks, from capital requirements to risk management.

GCash could benefit from becoming a digital bank, as it would attract a new consumer market that is capable of placing more amounts into deposit accounts in exchange for higher yields.

GCash is looking for fresh opportunities now that it is a publicly listed entity. Expanding into the credit, savings and wealth businesses as a digital bank may support its growth.

Mynt booked the country’s largest IPO in history yesterday, generating P60.9 billion and achieving a market capitalization of P442 billion. Net proceeds from the offer will go largely to building up its loan business and payment products.

Based on its final prospectus, Mynt will spend P5.65 billion, or 60 percent of the net proceeds, to fund its lending expansion over the next three years. Mynt is also placing P1.88 billion to bolster product development, as GCash aims for cross-border capability.

Still, Tang said GCash’s growth momentum can be sustained even without a digital banking license, as the e-wallet caters to around 41.5 million users monthly.

GCash is the country’s biggest e-wallet, handling more than 63.6 million transactions daily, with a suite of financial services ranging from cash remittances to quick loans.

abtestabtest Marcos: Don't panic over peso fall to P64 per dollar By Geraldine Santos | 1 day ago President Marcos Jr. says rising oil prices are weighing on the currency and economy. Business Ayala sets P20 billion tender offer for Mitsubishi deal By Elijah Felice Rosales | 17 hours ago The country’s oldest conglomerate is proceeding with a tender offer to acquire nearly P20 billion worth of shares to... Business Shares retreat on peso, inflation woes By Elijah Felice Rosales | 17 hours ago The local stock market retreated yesterday due to expectations that the worst is yet to be over for the peso’s decline,... Business Indonesia to honor coal export deals with Philippines By Brix Lelis | 17 hours ago Indonesia has assured the Philippines that it will honor long-standing coal supply contracts despite its move to centralize... Business Why gold does not always rise when inflation increases 1 day ago Inflation can support demand for gold, but it is one part of a wider market calculation. Business Latest More in Business Tighter bank lending shifts consumer credit toward fintechs BIR to expand tax abatement program to small taxpayers Financial system resources hit record P38.6 trillion in August Investing in Philippines, one project and one churro at a time abtest Share swap opens door for re-IPO of MGENR By Brix Lelis | 17 hours ago MGEN Renewables Inc. (MGENR) is entering into a P4.98-billion share swap with the Meralco Group’s renewable energy arm,... Business El Niño and pumped hydro storage system By Bienvenido Oplas Jr. | 17 hours ago After a prolonged La Niña from 2020 to 2025, we are back to El Niño phase this year until at least 2027. The... Business Cyprus sees higher economic engagement with EU-Phl FTA By Pia Lee Brago | 17 hours ago Cyprus sees considerable potential for increased economic engagement with the Philippines once a free trade agreemen with... Business Meralco on track to record P56.6 billion core profit By Louella Desiderio | 17 hours ago Manila Electric Co. is looking to post a record consolidated core earnings of P56.6 billion this year. Business Eligible SSS members get up to P8,000 uplift aid By Aubrey Rose Inosante | 17 hours ago The Social Security System is set to release up to P8,000 in financial assistance to qualified members covered by the expanded... Business Recommended Prosecution to defense: Don’t delay impeach trial 17 hours ago Lawyers of Vice President Sara Duterte should not engage in delaying tactics in presenting her defense before the Senate impeachment... BusinessSARASARA DUTERTE Aplasca files reply to direct assault rap 17 hours ago Former Senate sergeant-at-arms Mao Aplasca has filed his counter-affidavit on the direct assault complaint filed against him... BusinessAPLASCAMAO Marcos: Don't panic over peso fall to P64 per dollar 1 day ago President Marcos Jr. says rising oil prices are weighing on the currency and economy. BusinessBONGBONG MARCOSCURRENCYFOREX Premature to talk about VP replacement – Palace 1 day ago It’s premature to talk about a possible replacement for Vice President Sara Duterte while her impeachment trial is ongoing,... BusinessSARA DUTERTE JV open to inviting budget watchdogs to bicam hearings 1 day ago Senate finance committee chairman JV Ejercito is open to inviting civil society organizations  to the bicameral conference... BusinessLACSONSENATE next Recommended Prosecution to defense: Don’t delay impeach trial Lawyers of Vice President Sara Duterte should not engage in delaying tactics in presenting her defense before the Senate impeachment court, nor should they employ any filibuster methods to drag the case even further. 17 hours ago SARA SARA DUTERTE Aplasca files reply to direct assault rap Former Senate sergeant-at-arms Mao Aplasca has filed his counter-affidavit on the direct assault complaint filed against him over the May 13 Senate shooting. 17 hours ago APLASCA MAO Marcos: Don't panic over peso fall to P64 per dollar President Marcos Jr. says rising oil prices are weighing on the currency and economy. 1 day ago BONGBONG MARCOS CURRENCY FOREX Premature to talk about VP replacement – Palace It’s premature to talk about a possible replacement for Vice President Sara Duterte while her impeachment trial is ongoing, Malacañang said yesterday. 1 day ago SARA DUTERTE JV open to inviting budget watchdogs to bicam hearings Senate finance committee chairman JV Ejercito is open to inviting civil society organizations  to the bicameral conference committee hearings on the proposed P7.2-trillion national budget for 2027, after the groups flagged up to P1 trillion in potential pork barrel funds in the House of Representatives’ version of the spending bill. 1 day ago LACSON SENATE OK Are you sure you want to log out? Yes No X Login Philstar.com is one of the most vibrant, opinionated, discerning communities of readers on cyberspace. With your meaningful insights, help shape the stories that can shape the country. Sign up now!