THE non-bank financial arm of the M. Lhuillier Group, M. Lhuillier Financial Services, intends to add 200 branches this year, given a healthy remittance industry.
Michael Lhuillier, president and chief executive officer of M. Lhuillier Philippines, Inc. said these additional branches will be set up in untapped areas in Northern Luzon and parts of the Visayas like Samar, but most will be in Mindanao.
However, in order to realize this expansion goal, especially in remote areas, Lhuillier pointed out the need for more reliable internet services, increased presence of telecommunications facilities, and power.
M. Lhuillier Financial Services, whose services include Kwarta Padala, bills payment, insurance, pawnshop and cash loans, has over 2,000 branches spread across the country.
Every year, the company adds 200 branches on the average.
According to Lhuillier, the company has always been positive about expanding the business, banking on the country’s strong economic fundamentals. A depreciating peso will also encourage a good number of Filipinos to keep working abroad.
“The BSP said overseas remittances grew by five percent. We move a large (sum) of that money,” said Lhuillier.
“As long as that continues, the inflow of remittances will continue to grow.”
Filipinos abroad sent home $29.7 billion in 2016, up by 4.2 percent from the $28.5 billion recorded in 2015 and beyond the four percent projected growth for the year, according to the Bangko Sentral ng Pilipinas (BSP).
“Our growth is healthy. It is healthier than the figure reported by the BSP,” said Lhuillier, adding that this inspired the company to look for ways to improve their services, especially in remote areas.
As for domestic remittances, “the affordable rates when sending money have also made our company attractive to the public,” he said.
With more people sending money and paying bills through third-party agents like M. Lhuillier, the non-bank financial institution also saw the need to invest in technology. While they remain aggressive in increasing their brick-and-mortar presence, tapping the digital platform would widen the company’s reach.
“We are going to launch a mobile app, called ML Wallet, which is now in the testing phase. If we want to grow domestic remittances, we need to utilize technology because people cannot always physically go to our branches,” said Lhuillier.
He added that this initiative would further make money transfers and payment of bills easier, especially as smartphones become cheaper and more easily available to more Filipinos.
“It is a big technology play that we are investing in.”