Category: Business Mirror

Two Manila brokerage houses have placed a strong buy on Globe Telecom Inc., arguing that the country’s second-largest telecommunications operator is trading between 45 percent and 107 percent below its intrinsic value even as its operating metrics hit record highs.

In separate stock updates, B.A. Securities Inc. and H.E. Bennett Securities Inc. said the market has penalized Globe for its leveraged balance sheet while assigning close to zero value to its 33.84-percent stake in Mynt, the parent firm of e-wallet GCash, which has filed for an initial public offering (IPO).

Globe closed at P1,748 apiece as of August 18, near the middle of a 52-week range of P1,401 to P1,964, giving it a market capitalization of about P251.7 billion.

Jofer Gaite, vice president for sales at B.A. Securities, said the disconnect is rooted in how the market reads Globe’s capital structure rather than its cash generation. Intrinsic multiples-based valuation points to a target of P3,620.80 a share, while a discounted cash flow (DCF) model yields P2,544.27. Analyst consensus sits at P2,242.22, or 28.3 percent above the current price.

Globe posted record consolidated gross service revenues of P85.4 billion in the first half, up 6 percent from about P80.6 billion in the same period last year. Full-year 2025 gross service revenue reached an all-time high of P165.1 billion.

Mobile revenues reached P60.4 billion, up 6 percent, while corporate data grew 15 percent to P11 billion and broadband rose 6 percent to P12.4 billion. Enterprise demand for cloud services, cybersecurity and data centers is now the company’s fastest-growing segment.

Earnings before interest, taxes, depreciation and amortization (Ebitda) margin settled at 52.6 percent in the first semester, ahead of management’s roughly 50-percent guidance, translating to P44.9 billion in first-half Ebitda, or an annualized P89.8 billion.

Net income, however, fell 11 percent to P11 billion from about P12.4 billion, dragging net margin to 12.9 percent from 14.1 percent in 2025.

Joel de la Peña, market strategist and chief trader at H.E. Bennett Securities, said the contraction is not an operational failure but the result of non-cash and below-the-line items-smaller one-time dilution gains from Mynt, heavier depreciation on network assets, and higher financing charges.

Capital expenditures reached P26.3 billion in the first half, equivalent to 31 percent of revenues, down sharply from the 64.2-percent peak in 2022. Free cash flow stood at a positive P15.3 billion, reversing the negative P36.2 billion recorded four years ago. Net debt-to-EBITDA closed the semester at 2.48 times.

Both houses lean on a sum-of-the-parts (SOTP) reading to make their case. Based on preliminary prospectus filings, Mynt is targeting an offer price of up to P10 per share. At an assumed $8-billion valuation, Globe’s retained 33.84-percent stake is worth $2.71 billion, or P157.36 billion-about P125.89 billion after a standard 20-percent holding company discount.

Valuing the core telecom business separately at 5.5 times enterprise value to Ebitda and netting out roughly P232 billion in debt yields a core equity value of P261.90 billion, or P1,810.83 a share-already above the prevailing market price.

Even in the bear case of a 5.0-times multiple and a 25-percent holding discount, the SOTP fair value lands at P2,316.39, or 32.5 percent above current levels.

Globe trades at 12.67 times earnings against a 10-year median of 13.22 times and an industry average of 17.6 times, on earnings per share of P136.90. Its forward multiple is 11.81 times and price-to-book is 1.44 times. The stock carries a P25 quarterly dividend, with an ex-date of August 17, for a yield of about 5.76 percent.

The company serves 67.7 million mobile subscribers and 2.4 million broadband users, holds an estimated 44 percent to 47 percent subscriber share, and operates over 100,000 kilometers of fiber. Management has guided for low- to mid-single-digit revenue growth this year.

MPower, the local retail electricity supplier (RES) of the Manila Electric Co. (Meralco), has partnered with Big Ben Group to provide reliable and competitive power to its manufacturing plants in Pulilan, Bulacan.

This collaboration aims to support Big Ben Group’s ready-mix concrete production and sustainability goals.

‘Sustainability has to be embedded in how we operate and plan for the future. Partnering with MPower enables us to improve our energy management while supporting our long-term business and sustainability goals. It reinforces our belief that responsible business decisions and operational excellence go hand in hand,’ Big Ben Group Director Benjamin Eusebio said.

The Big Ben Group is a manufacturer and supplier of ready-mix concrete, delivering support for construction developments ranging from residential projects to major and commercial infrastructure.

‘Energy reliability and cost efficiency are fundamental to how we operate and compete. We cannot promise excellence to our clients if we do not secure excellence in our own operations. Partnering with a trusted provider like MPower strengthens the foundation of our business and supports our long-term vision for growth and resilience,’ Big Ben Group Chairman Eusebio Pacifico Garcia said.

He added that the collaboration with MPower further strengthens the operational continuity across Big Ben Group’s facilities by helping ensure efficient production and timely delivery of projects that support the communities it serves.

‘Our commitment extends beyond delivering power. We support Big Ben Group’s growth by providing the energy solutions and expertise needed to strengthen operational performance and long-term resilience.

By ensuring a stable and reliable power supply, we help create the conditions for businesses to focus on what they do best and continue creating value for their customers and communities,’ MPower Head Redel Domingo, for his part, said.

Meralco recently reported that its net income went up by 11 percent year-on-year to P26.3 billion in the first half, buoyed by the strong performance of its distribution, generation, and retail electricity businesses.

Consolidated core net income (CCNI) at end-June also improved by 3.8 percent to P26.5 billion from P25.5 billion, driven by a 48-percent contribution from the distribution utility (DU) and growing power generation earnings.

The company said it maintained stability through a ‘diversified earnings mix and prudent cost management’ amid global fuel pressures.

THE Senate Impeachment Court on Wednesday prohibited senator-judges, prosecutors, defense lawyers, witnesses, and other involved individuals from publicly commenting on the merits of Vice President Sara Duterte’s impeachment case.

Presiding Officer Sen. Francis Escudero said the directive is based on Rule 18 of the Rules on Impeachment, which requires those involved in the proceedings to refrain from making public statements that could affect the integrity of the trial.

Escudero warned against ‘trial by publicity,’ saying public commentary could undermine the dignity of the Impeachment Court and influence public opinion before evidence is properly evaluated. He stressed that the rule seeks to balance the public’s right to information with the need to protect the proceedings from prejudgment.

The ruling came after House prosecution counsel Amando Virgil Ligutan defended a Facebook post stating that misleading questions are not allowed even during cross-examination. Ligutan maintained that his post merely clarified a procedural rule and did not discuss the strength of the evidence, legal arguments, or merits of the impeachment case.

The controversy began during an August 12 exchange between prosecution counsel Lorna Kapunan and defense counsel Kristine Ferrer while Commission on Audit auditor Xylene Mae del Campo was being cross-examined. Kapunan said misleading questions were not allowed, while Ferrer responded that they were.

Ligutan later posted on Facebook that misleading questions are prohibited even on cross-examination. Defense lawyers subsequently raised the matter before the Impeachment Court, arguing that Ferrer may have been referring to leading questions rather than misleading questions.

Duty to clarify legal issues

LIGUTAN insisted that his post was not directed at any specific defense lawyer and was intended only to correct what he believed was an inaccurate statement about courtroom procedure. He also cited his experience as a lawyer and educator, saying he considered it his responsibility to clarify legal rules for the public.

Escudero, however, reminded Ligutan that being an educator did not remove his obligations as counsel before the Impeachment Court. He also noted that the transcript of the August 12 exchange could not fully reflect overlapping statements and that Ferrer may have been responding to the reference to leading questions.

The Impeachment Court later issued broader guidelines enforcing Rule 18.

Previous statements were effectively set aside, but Escudero ordered stricter compliance moving forward and warned all parties against making public comments that could affect the pending impeachment trial.

Escudero explained that the court will implement a two-strike policy for violators.

On the first violation, the offender will receive a serious public reprimand and a firm warning delivered in open court. This sanction will also become a permanent part of the official record and will serve as the individual’s final notice.

If the same offense is committed a second time, the violator will face a P30,000 fine, according to Escudero.

All parties

THE House prosecution team said that it respects and will comply with the Senate impeachment court’s strict enforcement of Rule 18, or the sub judice rule, while expecting the same standard to apply to all parties, including Vice President Sara Duterte.

House impeachment team spokesperson Robert Ace Barbers said the prosecution will follow the court’s directives but stressed that the rule should be applied equally to the prosecution, defense, and respondent.

Deputy Speaker Jefferson Khonghun said the implementation of Rule 18 will test whether the impeachment court applies its order fairly. He said both the prosecution and defense should be held accountable for statements that may violate the rule.

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EUMIR FELIX MARCIAL has gotten extra motivated in going 8-0 won-lost as a pro when he faces American Omar Ulises Huerta on September 19-their fight will be shown live on US television.

‘This is going to be the most important fight in his eighth professional career bouts as he was never seen in USA television before,’ MP Promotions head Sean Gibbons told the BusinessMirror on Wednesday. ‘Everybody will be watching him closely so he must look absolutely good.’

‘It’s going to be a big moment, it’s an opportunity he will not waste for sure,’ Gibbons stressed adding DAZN Worldwide and TNT will air his wards fight for the first time in the US.

Marcial has declared himself that he’ll be stronger, quicker and smarter against Huerta.

‘I’m going for 8-0 on September 19 and I will make everyone knows who exactly I am,’ he said. ‘I will not waste this one.’

They’ll be squaring off in a middleweight 10-rounder in the undercard that pits World Boxing Council (WBC) super lightweight interim champion Isaac ‘Pitbull’ Cruz against Nestor Bravo at the Pechanga Arena in San Diego, California.

Gibbons said that the WBC middleweight international belt and another vacant regional title-most likely the World Boxing Organization international crown-are at stake in the Marcial-Huerta fight.

DAZN Worldwide and TNT will air for the first time Marcial ‘s eighth bout in the United States followed by main event between Cruz and Bravo fight for the WBC super lightweight championship that makes the cards promoted by Premier Boxing Champions (PBC) exciting.

Marcial knocked out four of his seven opponents but is coming off a controversial majority decision victory against Eddy Colmenares last October in the ‘Thrilla in Manila II’ at the Smart Araneta Coliseum.

Huerta-fighting out of San Diego, California-holds a 15-1-1 win-loss-draw record with 13 knockouts.

‘This is going to be a war as both fighters are known for their high knockout prowess, but I believe Eumir will treat this fight seriously as we are planning to give him another fight by December once he wins this one before heading for a world title next year,’ Gibbons said.

THE Commission on Elections (Comelec) is ruling out a postponement of the first ever parliamentary elections in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), saying a single election-related incident will not derail months of preparations for the historic polls.

Comelec Chairman George Erwin M. Garcia, along with the Comelec en banc, attended the conference to talk about coordination and security preparations.

Secretary of Interior and Local Government Jonvic Remulla, the new Armed Forces chief, the Philippine National Police chief, the Philippine Coast Guard and senior security officials were also present.

‘We are in full control of the situation in the Bangsamoro,’ Garcia said.

He stressed that authorities remain confident in the security situation ahead of polls despite the recent attack against Chief Minister Abdulraof Macacua.

Garcia said election materials for the parliamentary elections have already been deployed across the different provinces and will soon be distributed to 105 municipalities and two cities.

The poll body’s presence in Bangsamoro also comes after the successful selection of two representatives of the region’s non-Muslim indigenous peoples through an inter-tribal convention held a day earlier.

Garcia described the selection as the first of its kind in the history of BARMM, noting that the process was peaceful and settled through discussions among six indigenous tribes.

‘Successful, peaceful and acceptable to all our indigenous peoples throughout the Bangsamoro,’ Garcia said.

Garcia said authorities have so far monitored only one election-related incident in the entire region, despite its history of election-related violence.

‘First time in the history of the Bangsamoro, our checkpoints have one election-related incident,’ he said.

Comelec is also preparing for faster transmission of election results through Starlink technology, which was used during the 2025 elections.

The poll chief said the commission is targeting a fast count, with results expected to be known on election night and winning candidates proclaimed the following day.

‘On the night of the election, you will know who won,’ he said, adding that the proclamation of winners could follow on September 15.

Beyond security and logistics, Garcia urged voters to participate in the polls after several postponements of the parliamentary elections.

‘The problem now is not when the voting will be held, nor whether the voting will push through, because it will push through,’ Garcia said.

Garcia said a low voter turnout would undermine the significance of an election that follows decades of conflict and is intended to give Bangsamoro voters greater control over the region’s future.

SAYING the ‘archaic’ policy behind the imposition of a travel tax-when overseas travel was viewed largely as a ‘privile ge’-no longer reflects present realities, Sen. Mark A. Villar is prodding his peers on the swift passage of Senate Bill (SB) 1870, or the proposed ‘Travel Tax Abolition Act.’

The measure seeks to remove the decades-old travel tax imposed on Filipinos leaving the country.

‘Hindi dapat maging dagdag na pasanin ang pag-alis ng bansa, lalo na para sa mga Pilipinong bumibiyahe upang magtrabaho, mag-aral, magpagamot, magnegosyo, o makasama ang kanilang pamilya. Panahon nang alisin ang travel tax at ibalik sa ating mga kababayan ang perang maaari nilang magamit sa mas mahalagang pangangailangan,’ Villar said.

[Leaving the country should not impose a burden on Filipinos, especially those traveling for work, schooling., medical treatment, do business or simply reunite with relatives. It’s time to end the travel tax requirement and allow citizens to enjoy and use the funds for more essential needs].

Introduced in 1977 under Presidential Decree 1183, the travel tax was imposed at a time when overseas travel was widely viewed as a privilege. Villar said this ‘archaic’ policy no longer reflects present realities, as Filipino travelers currently pay a full travel tax of P1,620 for economy-class passage and P2,700 for first-class passage. A family of four traveling in economy class must therefore spend an additional P6,480 before leaving the country.

‘The amount of P6,480 is a big deal to a family. They can use this for food, transportation, rentals, medicine or other expenses when they travel. Amid the steady rise in prices of goods, it’s only right that we remove taxes that pose additional burdens and don’t reflect current realities,’ Villar said, speaking in Filipino.

Under SB 1870, government agencies and private entities will be prohibited from collecting travel tax once the measure takes effect. Passengers who have already paid the tax for flights scheduled on or after the law’s effectivity will also be entitled to an immediate refund.

The proposal likewise supports the objectives of the Asean Tourism Agreement, which seeks to facilitate travel and promote stronger connectivity among Asean member states.

Allaying concerns of possible disruptions to government programs, Senator Villar noted that the bill has safeguards for the continued funding through the annual General Appropriations Act for projects previously supported by travel tax collections.

At present, 50 percent of the collections goes to the Tourism Infrastructure and Enterprise Zone Authority for tourism development, 40 percent to the Commission on Higher Education for tourism-related educational programs, and 10 percent to the National Commission for Culture and the Arts.

‘We will continue to support tourism education and culture, but the funds should not come from additional burdens on traveling Filipinos. These are national programs that must be funded out of the national budget,’ Villar stressed.

‘Our objective is simple:reduce the costs, make travel easier and allow each Filipino at bigyan ng mas malaking kalayaathe freedom to seek opportunity in any part of the world,’ he added.

Hossein Taeb built a reputation for ruthlessness over a four-decade career in Iran’s post-revolution security apparatus. After a break from the public eye, he’s back, reprising his former job as head of the country’s powerful volunteer militia, the Basij.

The appointment of the 63-year-old earlier this month confirms his place among a tiny circle of trusted confidants to the new Supreme Leader, Mojtaba Khamenei, and as one of the key decision-makers reshaping a country shaken by unprecedented protests and war.

‘Taeb is now sitting at the top of the system that he was central to creating,’ said Mohammad Hossein Torkaman, a former Islamic Revolutionary Guard Corps member, who left Iran in 2010 and now lives in exile in Europe.

‘The most important job he has is to prevent and stop internal dissent and to suppress it when it does happen,’ added Torkaman.

That task is particularly critical to the regime as the US pivots from military threats to economic pressure as a way to try to end the near six-month war. The tougher sanctions come as Iran’s currency is flailing and its access to fuel shrinking-both pressure points that have previously triggered domestic protests.

Taeb’s selection also indicates an expanded role for the Basij-a vast network of paramilitaries and other loyalists that enjoys sprawling economic interests from banking to steel, and which Iran claims can mobilize 20 million people, equivalent to a fifth of the population.

Its members, zealous young men and women, operate in mosques, workplaces and universities across the country. They have been deployed to disrupt public gatherings and violently put down demonstrations.

Most recently, security forces including the Basij killed thousands in January in the biggest and bloodiest unrest in the Islamic Republic’s history. At the peak of the unrest in Isfahan province, 19 Basij members died, higher than the number of police and IRGC casualties combined.

Khamenei’s decree appointing Taeb tasked him with ‘strengthening the people’s information network’ and ‘utilizing new technologies for grassroots resistance’ to make ‘Every Iranian a Basiji.’ Diplomats and analysts see that as a mandate to turn the organization into Khamenei’s eyes and ears on the street.

In return for their loyalty, members get economic perks like preferential access to housing and public-sector jobs. The Basij gives the fledgling supreme leader-who’s yet to appear in public since he succeeded his father-a loyal constituency that he can use to consolidate power, according to Saeid Golkar, an associate professor of political science in the University of Tennessee at Chattanooga who’s written a book on the militia.

‘This new Basij under Taeb will work as a social base under Mojtaba, not only to control society but also control the political elite,’ he said by phone. ‘They’re much more zealous than other security institutions, and they’re everywhere.’

Paranoia and protest

Born in Tehran in 1963, Taeb trained as a cleric and joined the IRGC in the early 1980s during the grueling eight-year war with Iraq, in which he fought alongside the younger Khamenei.

After the war he worked on counter-espionage for the Ministry of Intelligence and by the late 1990s was coordinating directly with Mojtaba Khamenei on domestic security issues, according to comments by the former head of state media Mohammad Sarafraz in 2021.

That prepared him to lead the Basij in 2009, when the militia suppressed the Green Movement protests sparked by a disputed election. The crackdown left dozens dead and led to the US sanctioning Taeb for human rights abuses.

His methods were a shock even to insiders. He was known for ruthlessness and paranoia, surveilling his own staff and having them tortured if he suspected them of treachery, said Torkaman, the former IRGC member.

‘When we hand the management of the recent crisis to people like Taeb, who are more familiar with batons than with thought, reason and prudence, this is the result,’ longtime member of parliament Ali Motahari wrote in 2009, amid the Green Movement protests. In the wake of that movement, the elder Khamenei set up the IRGC Intelligence Organization, a parallel spy service that reports to the supreme leader rather than the government, and picked Taeb to lead it. According to state TV, highlights of his 13-year tenure include the arrest of dual nationals, fighting corruption and tracking down dissidents abroad.

A string of security breaches blamed on Israel led to Taeb’s dismissal in 2022. In public he took on a symbolic role as adviser to the commander of the IRGC, but in practice he was coordinating with Mojtaba on security within his father’s office, according to diplomats.

Bringing Taeb back despite his dismissal ‘is a clear indication of the closeness of Taeb and Mojtaba,’ said Golkar, the academic.

‘When you are repressing people, when you are killing people, you need this loyalty, and I think no other organization in Iran can bring that.’

ALLIANZ PNB Life (AZPNBL) Insurance Inc. reported a 64-percent increase in its net income in the first half of the year and is banking on bancassurance to drive customer growth.

In a news briefing last Wednesday, AZPNBL President and CEO Joe Gross said the insurer also improved its ranking in terms of new business annual premium equivalent (Nbape), a key metric used to measure sales volume, placing third among local life insurance companies, up from seventh in the first half of 2025.

AZPNBL posted P4.59 billion in Nbape in the first half, a 98-percent increase year-on-year, Gross said, citing data from the Insurance Commission.

He added that the insurer is on track to meet or even surpass nearly all of its full-year targets given its strong performance in the first semester. He also expects double-digit growth in net income and customer base, both this year and in the years ahead.

‘Our estimate is that we’re number one in bancassurance,’ Gross added. ‘[We have] a strong bancassurance channel that is growing.’

The company broadened its network of Financial Solutions Specialists (FSS), with almost 500 FSS serving more customers across PNB branches nationwide.

Gross said the insurer will continue its strategy of strengthening its bancassurance partnerships to broaden its customer base.

‘The purpose of Allianz, globally, is to secure people’s future. You can only do that if people trust you. You have to deliver on the promise every single day to every single customer worldwide,’ he said.

‘It’s a volatile world. We’ve got geopolitical unrest, trade wars, real wars in Ukraine and in the Middle East. We have oil supply shortages,’ Gross said. ‘[People] seek stability. They seek protection. And ultimately, what people will seek is trust.’

German insurance giant Allianz forged a joint venture with the Philippine National Bank for a 15-year bancassurance agreement to provide the insurer with distribution channels for its products and to operate AZPNBL.

AZPNBL also has an exclusive distributorship arrangement with HSBC Investment and Insurance Brokerage, Philippines Inc., offering insurance propositions to HSBC Wealth clients.

AMBASSADOR of India to the Philippines Shri Harsh Kumar Jain handed over a newly constructed working and training hall to the local government of Barangay Aliputos, Municipality of Numancia, Aklan.

Municipal Mayor Rogelio M. Enero II formally received the hall at a ceremony on August 10, with Governor Jose Enrique M. Miraflores of Aklan, Assistant Secretary Francisco R. Cruz, CESO III, MMG of the Department of the Interior and Local Government, representatives from the agency and community, as well as barangay leaders, in attendance.

Expressing their appreciation to the Indian government for the project and its contribution to Numancia’s development, they welcomed the facility’s potential to boost skills, livelihoods, and the municipality’s agri-tourism initiatives. They thanked India for its continued community-focused development partnership with the Philippines.

The project was implemented under the India-Philippines Quick Impact Projects framework, which supports community-level initiatives for socioeconomic development. It is the fourth of six projects under the first cycle of QIPs being implemented through Indian Grant Assistance under the bilateral ‘Agreement on the Implementation of Quick Impact Projects’ signed in February 2023.

The facility forms part of Numancia’s efforts to strengthen its agri-tourism sector, providing a venue for skills development, training, meetings and community activities. The facility is expected to benefit some 5,500 farmers and fisherfolk.

Ambassador Jain highlighted in his speech that the project reflects the enduring friendship and Strategic Partnership between India and the Philippines, founded on mutual respect, close cooperation and a shared commitment to inclusive and sustainable development.

The project joins three other QIPs completed earlier this year: a livelihood training center in Bobon, Northern Samar; a primary care hub in Bacolod, Lanao del Norte; and a barangay health station in Cervantes, Ilocos Sur. They reflect India’s commitment to the Philippines’ regional grassroots development, its embassy said.

Jain also welcomed the resolution adopted by the Numancia LGU declaring August 10 as ‘Numancia-India Friendship Day.’ He expressed his deep appreciation, noting that the initiative symbolizes the warmth and enduring bonds of friendship between the LGUs’ residents and his country.

The QIP initiative is aligned with the Plan of Action for the India-Philippines’

Strategic Partnership for 2025-2029 signed during President Ferdinand R. Marcos Jr.’s state visit to India in August 2025.

India looks forward to further strengthening its development partnership through the next cycle of 10 QIPs, currently under consideration by the two sides.

Every so often, a borrower discovers that the ‘loan app’ they downloaded wasn’t quite what it appeared to be. A familiar-sounding name, a logo that looks close enough, a Facebook page styled to seem official – and then an unexpected demand: an ‘advance fee,’ access to their entire contacts list, or a collection message threatening exposure over a debt that was never properly disclosed.

Stories like this have become increasingly common across Southeast Asia’s online lending space, and regulators are taking notice. In the Philippines, the Securities and Exchange Commission has issued a growing number of advisories flagging websites, apps, and social media pages that impersonate legitimate, licensed lending brands – misusing their names, cloning their branding, and in some cases even engaging telecom authorities to help investigate the platforms involved.

It’s tempting to see this as a problem that only affects whichever brand happens to be impersonated at a given moment. In reality, the damage spreads much further – and one of its most corrosive effects is something the industry rarely talks about directly: it’s warping how the public understands loan pricing.

The ‘High Rates’ Problem Fraudulent Apps Create

Fraudulent lending apps very often build their entire model around aggressive, undisclosed, or outright fabricated fees and interest charges. Because these apps deliberately obscure or misrepresent their true costs – sometimes charging effective rates far beyond anything a licensed lender would offer – the borrower’s first real encounter with ‘online lending’ can be an experience defined by confusion, hidden charges, and a spiraling balance they didn’t agree to.

The problem is that most borrowers don’t distinguish between a fraudulent app and a licensed one when they talk about the experience afterward. To them, it’s simply ‘an online lending app’ that turned out to be predatory. That story then becomes part of the public narrative around the entire category – reinforcing a perception that online lending, as an industry, is synonymous with excessive rates and hidden fees, even though licensed, regulated platforms operate under disclosure requirements, rate transparency rules, and regulatory oversight that fraudulent apps simply ignore.

This creates a frustrating asymmetry: legitimate lenders that comply with rate disclosure regulations, cap their charges appropriately, and operate transparently end up competing for trust against a public perception shaped largely by the platforms that never intended to follow any rules in the first place.

Why This Hurts the Whole Industry – Not Just One Brand

It erodes trust in online lending as a category. When a borrower has a bad experience with a fraudulent app, that distrust rarely stays narrowly targeted. It tends to generalize – coloring how they view every other online lender, including ones with fair, transparent, and fully disclosed pricing.

It undermines financial inclusion. Online lending platforms exist largely to reach people underserved by traditional banks – gig workers, small entrepreneurs, first-time borrowers. When these borrowers hear stories about runaway rates and predatory apps, many understandably become more cautious about formal credit altogether, even when better, regulated, and more affordable options are available to them.

It raises the cost of doing business for legitimate players. Compliant platforms often end up dedicating real resources – legal support, customer education, verification tooling, public advisories – toward distinguishing themselves from fraudulent actors. That’s time and capital that could otherwise go toward improving products or lowering costs for borrowers.

It invites broader regulatory scrutiny across the board. When complaints about ‘high rates’ and predatory lending spike, regulators facing public pressure don’t always have the bandwidth to separate a licensed, rate-compliant lender from an unlicensed impersonator in the public conversation. The natural response tends to be tighter rules and more scrutiny applied industry-wide – a cost every compliant operator absorbs, regardless of whether they were ever involved.

It puts borrower data at risk in ways that compound the harm. Many fraudulent apps request the same permissions a real lending app might – contacts, photos, device data – without any of the accountability. That data is often used for harassment or further fraud, adding a second layer of harm on top of the financial one.

The Philippine SEC’s Regulatory Framework

The SEC also maintains enforcement mechanisms for platforms operating outside these rules. Unauthorized or non-compliant platforms may face cease-and-desist orders, blacklisting, and legal action. This gives the regulatory system both a pricing standard and a mechanism for addressing platforms that fall outside it.

At the same time, new unregistered and fraudulent platforms continue to appear from time to time, reflecting the ongoing nature of the space rather than any single response. This is a common pattern across many regulated digital industries, where oversight and public awareness work together on an ongoing basis to help borrowers distinguish licensed lenders from unauthorized ones.

The Bigger Picture

Fraudulent apps aren’t simply a nuisance sitting at the margins of the online lending industry – they’re actively shaping how the public understands what ‘online lending’ means, and not for the better. Every time a fake app charges outrageous, undisclosed fees and gets lumped in with the category as a whole, it becomes a little harder for legitimate, rate-compliant platforms to be seen for what they are.

Closing that gap won’t happen through any single company’s efforts. It takes closer cooperation between regulators, platforms, and app marketplaces; faster reporting and response when fraudulent platforms surface; and borrowers who feel equipped to pause and ask a simple question before downloading anything – is this actually a registered, transparent lender?

That question, asked consistently, may be one of the most effective tools the industry has for protecting the trust that legitimate, responsible lending depends on.