THE Ayala-led Bank of the Philippine Islands (BPI) has pledged to reinforce its support to the country’s small and medium enterprises (SMEs) with the opening of a new client division starting Jan. 1.
In an interview with reporters on Tuesday, BPI president Cezar P. Consing said the bank will open BPI Business, the third category after BPI Retail and BPI Corporate Business, to focus on serving the capital requirements and other financial needs of SMEs.
BPI executive vice president Dennis Montecillo said that under BPI corporate, more than 90 percent of the clients are SMEs.
“Historically, BPI has grown with its corporate presence, but we came to realize that the consistent growth of the Philippine economy (is with) the SME segment. (They are) bankable and are in need of banking services,” Montecillo said.
In the Philippines, 99.5 percent of businesses are SMEs, including micro enterprises. In Cebu, most local companies fall under this category, and BPI intends to provide better services through BPI Business, which Montecillo described as “properly sized and priced loans as well as faster turnaround time loan approval.” Cebu, according to the EVP, is BPI’s largest transaction for corporate business outside Metro Manila. In terms of branches, it has 32 BPI branches and four BPI Family Savings Bank branches across the province. The bank is also slated to open three more by yearend in the cities of Bogo, Carcar and Toledo.
“If you look at it, Cebu is a microcosm of the whole bank. You’ll see growth on the loans, on deposits, asset management, growth in payments,” said Consing.
BPI executives hold bright prospects for its Cebu business, driven by growth in commerce and trade, and expansions of local SMEs.