BPI CEO: “BPI will capitalize on the strength of our brand, our significant presence plus a robust digital platform to compete.”
BPI — The president and CEO of the Bank of the Philippine Islands said that the bank is prepared to compete with digital banks and fintech (financial technology) companies.
On Thursday, BPI President and CEO Jose Teodoro “TG” Limcaoco said that the bank is prepared to compete with fintech and digital banks by investing in innovation, accelerating its digital offerings, and introducing new products in order to maintain its market share.
The Bangko Sentral ng Pilipinas (BSP) has approved purely digital banks as a new banking category with no physical network, thus, having more flexibility in their offerings such as higher deposit interest rates.
On the other hand, Limcaoco said in BPI’s annual shareholders’ meeting that traditional banks already have an established distribution channel, large customer base, and brand recognition.
“While fintechs leverage on their low-cost model, BPI will capitalize on the strength of our brand, our significant presence plus a robust digital platform to compete,” Limcaoco said.
ABS-CBN News reported that the bank now offers pure online and mobile account opening, just like digital banks.
The bank also has a suite of mobile apps, with more platforms to launch soon, BPI chairman Jaime Zobel De Ayala said. According to Limcaoco, it would also offer higher rates for the unbanked.
“Soon, as early as possible next month, we will be offering a high yield deposit product to primarily unbanked Filipinos who are digitally savvy,” Limcaoco said.
READ ALSO: BPI Intros Digital Banking Platform To Help MSMEs
The central bank approved the digital banking licenses of LandBank’s OFBank, PayMaya’s Maya Bank, Gokongwei Group’s GoTyme, UnionBank’s UnionDigital, Tonik Bank, and UnoBank in 2021.
When it launched, Tonik digital bank hit PHP 5 billion in deposits just after 8 months of operations. Its main draw is the 4.5% interest rate for deposits and up to 6% interest rate for time deposits.
Maya Bank, UnionDigital, and GoTyme, meanwhile, are set to roll out their services this year.
Limcaoco said that the healthy competition of the fintech companies and neobank together with incumbent banks will result in a “very interesting industry and more developments in the coming year”.
According to the data by the BSP, BPI is the Philippines’ 4th largest bank in terms of assets as of December 2021.
Thank you for visiting Newspapers.ph. You may express your reactions or thoughts in the comments section. Also, you may follow us on Facebook as well.
