AYALA-BACKED BPI is making banking easier by offering deposit and withdrawal services in partner stores in Cebu.
On Monday, Aug. 5, 2024, BPI activated this service in Prince Express Gun-ob, Lapu-Lapu and Prince Hypermart-Minglanilla, where one can deposit and withdraw cash and apply for BPI products. This is in partnership with Cebu’s homegrown retail players—Prince Stores and Prince Retail Group.
“Last year, we partnered with retail giants in the country to offer more Filipinos easy access to BPI products such as savings accounts, credit cards, auto, housing, and personal loans and insurance products. This year, partner stores will also begin serving existing BPI account holders, allowing them to deposit and withdraw cash from the nearest partner store. Together with our retail partners, we are defining what it means to bank, to reach, to connect and to thrive,” said Jose Teodoro Limcaoco, BPI president and chief executive officer.
The launching of this new service coincides with the 100th-year anniversary of BPI’s banking presence in Cebu.
This service is currently available in select Prince Stores and Prince Retail Group branches, with plans for nationwide expansion soon.
Rally Jereza, BPI Agency Banking head, said that this new initiative, first piloted in Cebu, aims to make BPI services accessible to communities, particularly in areas without easy access to traditional bank branches or ATMs.
“We want to inculcate banking in the daily lives of Filipinos. You don’t have to go out of your way to do a banking transaction,” said Jereza.
“Say for example, you are here buying a dress for your kid and you’re able to save P100 and you want to deposit it, you can go right away to the counter and deposit it,” he said.
Jereza promises ease of use and security for customers while transacting with partner stores.
“Cash deposits and withdrawals through partner stores are straightforward and designed to provide a seamless, secure and rewarding experience to our customers,” he said.
Customers will only need to present one valid government ID to open an account or perform a cash deposit or withdrawal. A store staff trained by BPI will man the kiosk.
Following the pilot launch of the service in Cebu, 6,000 retail stores will soon have this banking service.
“BPI will have the largest distribution network in the country starting next year,” he said.
BPI’s ambitious goal is to put 50 million customers on its platforms.
Besides partnerships with Prince Stores and Prince Retail Group, BPI also has tie-ups with Rose Pharmacy and Metro Gaisano, among other retail players.
BPI has about 865 branches nationwide, of which 40 branches are in Cebu.
Financial inclusion
According to Ginbee Go, BPI Consumer Banking head, the bank is committed to helping the Bangko Sentral ng Pilipinas (BSP) get more Filipinos on board the formal financial system.
She is confident the BSP would hit its goal of increasing the share of Filipino adults with bank accounts to 70 percent, as financial institutions like BPI bring its services closer to underserved communities through the agency banking concept.
BPI established Agency Banking, which will enable a network of partners composed of department stores, supermarkets, convenience stores, gas stations, and online partners to serve customers through tech-enabled infrastructure.
Based on the 2021 Financial Inclusion Survey of the BSP, the share of Filipino adults with bank accounts soared to 56 percent in 2021 from 29 percent in 2019.
Filipino adults with bank accounts doubled to 42.9 million from 20.9 million, translating to an additional 22 million accounts opened between 2019 and 2021.
Consequently, Filipinos without an account dropped to 34.3 million from 51.2 million.
In October 2023, BSP said the share of Filipino adults with bank accounts reached 65 percent of the adult population in 2022.
Earnings
BPI ended the first semester with a record net income of P30.6 billion, up 21.5 percent, driven by robust revenues and sustained positive operating leverage.
Total revenues accelerated 23.8 percent to P81.2 billion year-on-year, boosted by the 22.2 percent increase in net interest income to P61.3 billion.
Average loans expanded 18.4 percent and net interest margin widened 23 basis points to 4.26 percent. Non-interest income was up 28.7 percent to P19.9 billion, driven by the 28.8 percent increase in fee income to P17 billion and foreign exchange gains of P2.2 billion, up 58.6 percent year-on-year. Strong fee income performance was led by higher service charges, bancassurance income and credit card fees. / KOC