BPI Direct BanKo to open 100 new branches in 2019
BPI Direct BanKo, Inc. wants to open another 100 branches next year as it aims to expand its reach in Mindanao and cope with the demand in areas it is currently servicing.
On Wednesday, BPI Direct BanKo President Jerome B. Minglana said the microfinance arm of the Ayala-led Bank of the Philippine Islands (BPI) targets another 100 branches by next year to end 2019 with 300 branches.
“In fact, we will be growing a little more in the Mindanao area,
but really it’s across the country still,” Mr. Minglana told reporters yesterday in a briefing.
Mr. Minglana added that the bank plans to end next year with 40-45 branches in Mindanao from around 20 currently as it expects more micro-entrepreneurs in the area.
“The goal was to have a representation in all the big regions. But in Mindanao, we feel that there are less banks there and as such we want to be there too.”
At end-October, BPI Direct BanKo had 150 branches spread in key cities, with the goal to end the year with 200 offices.
“As we speak more than 165 in count but the goal really is to build those 35 extra branches until year ends,” Mr. Minglana said.
Aside from expanding to Mindanao, BPI Direct BanKo will put up more branches in areas it is currently serving to cope with the increasing demand.
“Our branches can only accommodate so many clients and we don’t want them to cater to so many clients. We will expand in those areas. It’s a play of being present in more places and being able to service those where we are now but unable to cope with the demand,” he said.
Currently, the bank is focused on lending to four industries such as wholesale and retail, service, eateries and agriculture, with wholesalers and retailers making up the bulk of its loan disbursements.
BPI Direct BanKo offers financing from P25,000 to P300,000, with interest rates of 2%-2.3%. No collateral is required for loans up to P100,000.
BPI Direct BanKo was officially launched in 2017 after BPI’s two specialized thrift bank units — BPI Direct Savings Bank, Inc. and BPI Globe BanKo — were merged in 2016.
Meanwhile, the bank has partnered with the central bank in a coin re-circulation program which will allow Filipinos to exchange their soiled coins and bills unfit for circulation for clean and crisp ones.
Starting Dec. 3, clients and non-clients of BPI Direct BanKo can surrender their soiled money in exchange of new ones with an extra giveaway item.
This will be piloted in 10 branches, which were allotted with P50,000 worth of new bills and coins.