CIMB ties up with Philippines telco to provide digital financial services

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KUALA LUMPUR (Nov 18): CIMB Group Holdings Bhd (CIMB) has tied up with the Philippines’ largest telecommunications company by customer base — Philippine Long Distance Telephone Company (PLDT) — to offer digital financial offerings and solutions for customers in the Philippines and across Asean.

In a filing with Bursa Malaysia today, the country's second largest lender said its unit CIMB Group Sdn Bhd had yesterday (Nov 17), inked a strategic collaboration agreement with PLDT's wireless services provider, Smart Communications Inc (Smart) and its wholly-owned digital unit, Voyager Innovations Inc (Voyager), for the above collaboration.

Commenting on the partnership agreement, CIMB's group chief executive officer (CEO) Tengku Datuk Zafrul Aziz said through the partnership, the banking group will be able to offer innovative and differentiated digital banking and financial technology solutions in the Philippines and across Asean.

"The partnership comes at an opportune time, when the roles of telecommunications providers and banks are increasingly converging.

"It is especially exciting that the partnership may, among others, be able to leverage on PLDT’s experience and insights in serving its sizeable customer base," he added.

Meanwhile, PLDT chairman Manuel V Pangilinan said, “CIMB is among the largest and most diversified Asean banks, and its regional banking knowledge and presence across Asean will provide depth to this digital partnership."

He added that the collaboration is premised on the unique capabilities and positions of the partners.

"CIMB, which has been at the forefront of banking innovation, has deep regional banking know-how and an extensive understanding of the needs of customers in the region, whilst the market-leading and innovative fintech solutions and strong digital payments ecosystem of Smart and Voyager, strengthen the value proposition of PLDT," he said.

Shares in CIMB fell two sen or 0.44% to trade at RM4.55 as at midday break today, for a market capitalisation of RM38.79 billion.

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