Billease Injects ₱1 Billion Into Rural Bank as It Expands Into Digital Banking Services

 

Billease is accelerating its transition from a digital lender into a broader financial services provider, committing ₱1 billion in new capital to its banking subsidiary, Rural Bank of Sta. Maria-Ilocos Sur (RBSM), as it prepares to introduce a range of digital banking products.

The company announced on June 10 that half of the planned investment, amounting to ₱500 million, has already been infused into the rural bank. The remaining ₱500 million is scheduled for deployment before the end of the year. Once completed, the funding will lift RBSM's total capitalization beyond the ₱1 billion mark, significantly strengthening its capacity for future growth.

The investment represents a major step in Billease's long-term strategy of evolving from a lending-focused platform into a full-service financial institution. While the company built its reputation through consumer loans and buy now, pay later offerings, management believes customers increasingly require a wider range of financial tools beyond access to credit.

By acquiring and upgrading RBSM, Billease is positioning itself to provide regulated banking services that complement its existing digital ecosystem. The move also aligns with the Bangko Sentral ng Pilipinas' initiative to encourage the development of digitally enabled rural banks capable of expanding financial inclusion across the country.

Since taking ownership of the rural bank, Billease has focused on reinforcing critical operational foundations. Governance structures, risk management systems, compliance mechanisms, and technology infrastructure have undergone extensive enhancements to prepare for the rollout of modern banking products.

The newly committed capital will fund the modernization of the bank's core banking systems, strengthen its regulatory and governance framework, and support the introduction of new financial products such as savings and deposit accounts. In practical terms, the investment serves as the foundation upon which future services will be built. Much like constructing a high-rise requires a solid base before adding new floors, digital banking expansion depends on robust systems, capital strength, and regulatory discipline.

The timing of the investment follows a year of strong financial performance for Billease. Based on audited consolidated results, the company recorded revenue of ₱9.3 billion in 2025, representing growth of more than 80 percent compared with the previous year. Net income reached ₱840 million, marking its third consecutive year of profitability.

Its lending operations also continued to expand rapidly. The consumer loan portfolio increased by more than 75 percent to approximately ₱11.9 billion, while the platform now attracts over 100,000 new customers every month. Since its establishment, Billease has released a cumulative ₱130 billion in loans.

Dennis Valdes, president and chief executive officer of RBSM, said the additional capital arrives at a crucial stage in the bank's transformation. He noted that the institution is currently undertaking a comprehensive upgrade of its core systems as it prepares to launch new banking services, adding that the investment will help accelerate product development while supporting the group's commitment to providing fast, secure, and reliable financial access.

Billease co-founder and chief executive officer Georg Steiger emphasized that banking is a logical progression for the company. He said that while Billease has successfully established a profitable digital lending business, customers increasingly seek a more complete financial relationship that includes savings, deposits, and other everyday banking services. According to Steiger, the company remains focused on strengthening governance, systems, and operational processes to ensure sustainable and responsible growth as it executes its expansion roadmap.

Founded in 2017 through First Digital Finance Corp., Billease offers consumer financing and buy now, pay later services in the Philippines. The company is supported by investors including TPG's The Rise Fund, Burda Principal Investments, and Seawood.