BPI pushes digital banking in Negros
THE Bank of the Philippine Islands (BPI) is encouraging more clients to do their banking transactions through digital channels such as the Bank’s online facility of mobile app for greater convenience and security.
BPI Chief Operating Officer Ramon “Mon” Jocson said not many Filipinos, particularly in the provinces , are used to doing their banking transactions online or using their mobile phones.
“For simple transactions such as transferring funds, paying bills, paying for meals at a restaurant, or sending money to loved ones, you don’t need to use cash or go to the physical branch. They can all be done online or via an app on a smartphone, which many Filipinos already have”, he said.
In the Visayasmindanao area, the digital adoption rate, or the percentage of clients using BPI Online or the BPI Mobile app, is 31 percent. The rest still prefer to visit the branch or carry cash.
“We hope to double the adoption rate in the next few years as we further digitalize the Bank. Digitalization will only increase financial inclusion in the country as more and more Filipinos have easy access to financial services using digital tools”, said Mr. Jocson.
BPI has embarked on a digitalization transformation journey that will engage, empower, and enhance the client experience throughout digital technology.
“Digitalization is about putting our clients front and center. This requires that we make the experience of our clients seamless as they move from physical channels, like our branches, to our digital channels, such as BPI Online and BPI Mobile. Our digitalization will help us deliver an omni-channel experience, with clients being able to start a transactions in one channel and complete it in another”, Jocson said.
Furthermore, digitalization, including the integration of mobile banking tools, is expected to benefit BPI, too, by reducing the cost to serve. As people move towards digital banking transactions, the physical branches become avenues for higher value face-to-face interactions with clients.
Mr. Jocson said the widespread use of mobile phones in the country and the exponential growth of mobile internet have also compelled BPI to embrace a mobile-first mindset so it can be more competitive and innovative. This mindset considers mobile devices as main engagement tools, rather than just an option.
In the last three years, BPI has spent Php 11.6 billion in technology to build its servicing capacity and prepare its infrastructure for future services; Mr. Jocson reported. The bank continues to invest 6-7% of its revenues on technology every year. Recently, it upgraded its online and mobile systems to turbo-charge the existing functions of its application platforms.
“During the first phase of our digital transformation three years ago, we built our foundational digital infrastructure, which meant delayering the technology architecture of the bank. We built a State-of-the-art cyber security operation s center, started to upgrade our core systems, and adopted agile approaches to create capacity, improve turnaround time, and enhance customer experience, “Mr. jocson explained.
BPI recently launched its new BPI website and mobile app, which allow clients to have better control of their transactions anytime, anywhere.
Creating Shared Value
BPI will continue to balance the growth in the usage of its digital channels with its physical branches.
Raul Dimayuga, Retail Banking Division head for Visayas and Mindanao, said the digital channels are meant to complement the branches to serve a wide range of clients.
“the Branches are there for more meaningful conversations on our clients financial goals, “he said “Digitalization will reduce our cost to serve and will therefore permit a much higher level of engagement with these segments. it will make financial inclusion truly sustainable.”
BPI’S loan portfolio in the region is highly diversified now with exposure to varied industries-manufacturing (sugar & alcohol production), food (retail food franchises), trading (commodities), transportation (auto dealerships, public transport & port business), fmgc, real estate (horizontal residential and commercial), agribusiness (sugar, livestock, aqua culture), contraction, and various retail industries.
“We want our clients to go digital and experience efficient, frictionless transactions between digital channels and the branches,” said Mr. Jocson, “It will empower clients and at the same time, allow us to be more attuned to their needs as we offer relevant and timely financial services.