Moving towards more financial inclusion
WITH a heritage unmatched in Philippine banking, Bank of the Philippine Islands (BPI) has every reason to be jubilant as it observed its 167th anniversary last August 1st.
Practically all rating agencies have BPI on top of the heap.
Citing Nielsen, BPI President Cezar “Bong” P. Consing, says “the value of our corporate equity is among the highest in the country, and certainly the highest of all Philippine financial institutions.”
Parenthetically, Consing is only the 13th president and CEO in the 167-year history of the bank.
Nielsen cites as reasons the attributes most associated with BPI – stability, integrity, and trust.
International agencies rank BPI as “investment grade.”
Even the Bangko Sentral – which has traditionally been stingy when it comes to ratings – has given BPI the highest grade – CAMELS 5. We understand that this is the first – and perhaps the only – such rating awarded to a domestic bank.
Indeed, BPI has a proud legacy. Over eight generations, BPI has achieved many “firsts.”
• Then known as Banco Español de Isabela II, BPI became the de facto central bank in the Philippines with authority to print bank notes.
• BPI survived two major upheavals which could have crushed lesser institutions – the Philippine Revolution of 1898 and the occupation of the Philippines during the Second World War.
• BPI funded the early public institutions and facilities – the Arranque Market, the Hospital de San Juan de Dios, and the tramvia which replaced the horse-drawn carriages.
• BPI pioneered in electronic banking, ATM networks, bancassurance, mobile microfinance, green bond. BPI also set up the first solarpowered bank branch.
And all throughout its history, BPI has come up with impressive numbers across all metrics, e.g., total assets, loans, deposits, asset yields, assets under management, capital adequacy, and market capitalization. Particularly impressive is BPI’s CASA ratio, a barometer of client loyalty and cost competitiveness.
But BPI is not about to rest on its laurels.
“Five, maybe ten years from now, when our institution is described, it is our hope – of our chairman, our board, and our management – that we be seen as the most inclusive of Philippine banks,” Consing said.
“In a country where only a quarter of the population have bank accounts, inclusivity is key to national development and our own continued relevance,” Consing explained.
Consing outlines some ways by which BPI intends to aggressively pursue financial inclusion:
• Already a leader in digitalization, BPI aims to further step up the process which will make the the bank more accessible to clients at even reduced costs.
• BPI will further increase its microfinance footprint, therefore providing more opportunities for selfemployed micro-entrepreneurs (SEMEs). To this end, BPI Direct BanKO will be setting up 100 branches every year for the next three years.
• BPI recently set up the Business Bank Group to maximize its relationship with depositors who do not currently rely on BPI for their financing needs.
• Finally, through BPI Foundation, the bank’s corporate social responsibility arm, BPI intends to participate in the national growth agenda by promoting the 3 E’s – entrepreneurship, education and environment. Note: