AgriNurture, a Philippines-based agricultural company is preparing to provide digital banking and microfinancing services to farmers in the country.
Earthright Holdings, which is the parent company of AgriNurture, has acquired a significant stake in Binangonan Rural Bank to help AgriNurture start its new venture.
According to media reports, the two parties will collaborate with AusPhil Group and launch a digital bank by mid-2020.
The agreement also requires Earthright Holdings to help fund the process of launching the digital bank.
AgriNurture will provide its services to farmers in the Philippines, who often struggle with financing and securing loans. The digital banking services will help ArgiNurture tap into the sector which is mostly underserved.
The very aim of this venture by AgriNurture is to create a digital ecosystem where producers in the Philippines can buy agricultural products and also access financing simultaneously.
AgriNurture, which is one of the Philippines’ major exporters of fresh and processed fruits to the world market, reported a 50 percent jump in profits during the first half of 2019.
According to the company, the increase was due to the increase in exports, retail and distribution as well as the consolidation of Fucang’s operations from the sale of commodities and real estate properties.
Last year, the board of directors at AgriNurture gave their approval for the company to buy a stake in Plentex, an Australia-based aquaculture firm.
In the month of December 2019, the board of directors also approved the plan to enter into a joint venture with the Department of Justice through the Bureau of Corrections for the development of an agri-tourism corn plantation in Palawan. AgriNurture will fund the project.