BPI to expand business via mobile-based BPI Globe BanKo

The Bank of the Philippine Islands (BPI) aims to expand microfinance lending by targeting the bottom market through the country’s first mobile phone-based savings bank, BPI Globe BanKo. Former BPI Globe BanKo President and CEO and now the Mynt President and CEO John Rubio said BPI is accelerating its third leg, BPI Globe BanKo, to widen its bottom market reach.

“We have a big market base in microfinance business. They wanted to go to the specific model in microfinance based on the success of our segment. They have great brands, BPI and BPI Family, and there’s a viable way to reach the base of the pyramid through Globe BanKo,” he said on the sidelines of the Mondato Summit Asia.

He said Globe BanKo’s total deposits reached Php1.1 billion in August. Total loans expanded to Php180 million, from last year’s Php100 million. The mobile-based bank has 1.1 million clients. BPI will increase its touch points. Currently we have five bank branches. BPI’s plan is to expand them,” he said.

Rubio said they do not want to compete with commercial banks and that Globe will be accelerating its business in the digital platform. He did not divulge the acquisition cost, but he said that sales proceeds were used by Globe to set up Mynt, the financial technology innovations arm of Globe Telecoms.

With Mynt, they will be able to serve the underserved and unserved markets in a different way. “The proceeds from the sale were reinvested back to financial technology business. That’s why we have Mynt.

We have the G-Cash transactions and other business in the pipeline like payments, scoring and other financial technology business,” he told reporters. With the acquisition of BanKo, BPI underscores its commitment to inclusive growth.

Ayala Corp. CEO and Chairman Jaime Augusto Zobel de Ayala said BPI’s assumption of full control and ownership of BanKo is an important step in the continued effort of the Ayala group to provide access to essential financial services to the unbanked segments of our population.

“BPI will now  be  properly  positioned  to  pursue  traditional  microfinance  lending  within  existing  regulatory frameworks,” he said.

“We thank our partners for giving us yet another opportunity to give access to funds and other banking services to clients who, otherwise, would not have been able to bridge their personal financial needs and jump-start their ventures,”  BPI President and CEO Cezar P. Consing said.