BANK OF MAKATI (A Savings Bank), Inc. is looking to push its digital shift and launch more offerings as it seeks to regain its place as the sixth-largest thrift bank in the Philippines in asset terms.
“Based on our latest data…, we’re not satisfied with our ranking. In terms of assets, I think we’re just number eight now because of some mergers that happened. But in terms of our profit target and RoE (return on equity) so far, we are above our target,” Bank of Makati President Luis M. Chua said on the sidelines of an industry event last month.
“I think we were already in the sixth before, but… they reported to me that we’re at eighth in terms of asset size.”
Bank of Makati had assets worth P60.83 billion as of end-March, placing eighth in the sector, central bank data showed.
Mr. Chua said they plan to roll out their digital banking platform by January.
“We are in the process of migrating to a new core banking as well as a new loan system. Based on the last check in our timetable, it will happen in January next year, the full implementation. So, after that, we will implement mobile banking and internet banking,” he said.
The bank also wants to tap into the teachers’ loan market, with the Bangko Sentral ng Pilipinas’ (BSP) move to extend the maximum repayment period for salary loans expected to increase demand for credit.
The central bank raised the maximum repayment period for salary-based general-purpose consumption loans to seven years from three years previously. This came in response to calls from the education sector for greater payment flexibility for their borrowings.
“We’re already finalizing the features. The infrastructure is critical. Meaning, the unit itself, as well as the expectations of the people. We’re also hiring some people,” Mr. Chua said.
“It’s good for those who are already in the game. Because of course, that could increase their revenue for another two years due to the expansion. But in our case, it’s also a welcome move. The portfolio growth will be fast and we can extend larger amounts.”
FEES
Meanwhile, Mr. Chua said the central bank’s push to lower retail digital transfer fees is positive for the thrift banking industry as this could boost volumes.
“For me, in the long run, I think it’s net positive because hopefully, it will increase the use of electronic transfers. If the speed of the transaction will also improve, the volume of the portfolio can also expand rapidly,” he said.
“It’s like in ATMs before, you have to shoulder the cost of your deposit. The [digital banking] infrastructure is costly. So, you’re hoping that you can recover those costs. But it will not form part of the regular cost to operate.” — A.M.C. Sy
Bank of Makati looks to ramp up asset growth
Philippines Pandemic
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