Globe Telecom CEO: “We’re trying to broaden access to loans and lending to a sector that normally would go to the informal one”
GLOBE TELECOM — The CEO of Ayala-led telecommunications company sees loans and stock trade as the next source of profit.
Globe Telecom President and CEO Ernest L. Cu said that the company is pursuing mobile stock trading and lending to unserved consumers as growth from its traditional business tapers off.
The company, which counts Ayala Corporation and Singapore Telecommunications Ltd. as its largest shareholders, is building its lending business through its GCash platform which already has a loan portfolio of PHP 40 billion.
In an interview with Bloomberg TV’s Haslinda Amin, Cu said that they’re trying to broaden access to loans and lending to “a sector that normally would go to the informal one, where interest rates are very high,”.
According to a report, the company and the Philippine Stock Exchange (PSE) will introduce a mobile stock trading service this month. The company’s mobile stock trading service aimed at expanding the local equity market’s retail investors base.
Cu expects its take-up to be as “tremendous” as the other financial services that’s been added to GCash.
“When banks asked us to acquire deposit accounts for them as a channel, hundreds of thousands come in, something that’s never been seen before,” Cu said. “I presume it will be in the millions. Hopefully, it will even double what’s going on at the exchange today or even triple. But that being said it will be a smaller amount of money.”
READ ALSO: GCash Partners With PSE, AB Capital To Let Users Invest In Stock Market Through App
Cu also said that the company will reduce its capital spending expenditure and will also continue “deleveraging” in 2023.
According to a report last September, GCash “GStocks” will have soft launching in November this year and no details on fees and other information have been disclosed yet as of this writing.
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