MANILA, Philippines - Ayala-controlled BPI Globe BanKo Inc. hopes to post a 40 percent growth in its loan portfolio next year with the growing number of microenterprises borrowing more to finance their operations.
BanKo president Teresita Tan said in an interview with reporters that the savings bank is looking at a loan portfolio of P3.5 billion by the end of next year from the projected level of P2.5 billion this year.
Tan pointed out that the bank is confident of ending this year with a loan portfolio of P2.5 billion as the current level has reached P2.1 billion.
She pointed out that the growth would come from the growing number of microenterprises seeking loans to bankroll their operations.
BanKO is the first mobile-based, microfinance-focused savings bank in the Philippines established in July 2009 by Bank of the Philippine Islands (BPI), Globe Telecom Inc., and diversified conglomerate Ayala Corp.
Tan said the bank provides the low-income segment with secure and convenient access to affordable financial services by leveraging on its combined assets and infrastructure in banking and telecommunications.
She revealed that the bank needs to further beef up its capital currently amounting to P552 million to address the growing demand for loans.
“Obviously we need the capital to lend to bigger accounts,” Tan explained.
With the support of six regional branches in Luzon, Visayas, and Mindanao, BanKo has adopted a “branchless” banking method of service through partner outlets to perform cash-in or cash-out transactions and conduct customer identification (KYC) for savings and loan applications.
According to her, the savings bank sees its number of mobile money users growing to 300,000 by the end of the year from the current level of 250,000.
The bank is also looking at increasing the number of partner outlets to 3,000 from the current number of about 2,000.
“We have over 2,000 partner outlets and we hope to end the year with 3,000. We generate loans and mobile money users by having more retail partner outlets,” she said.
BanKO’s current partners include Tambunting Pawnshop, CVM Pawnshop, Generika drugstores, Czarina Foreign Exchange, gasoline stations, Internet cafes, loading stations, convenience stores, and many more.
These partner outlets accept applications to allow prospective clients to open an account and do their cash-in and cash-out transactions without having to go through the tedious banking procedures and without high account maintenance fees.
BanKo also partners with microfinance institutions (MFIs) such as rural banks, non government organizations (NGOs) and cooperatives, offering wholesale institutional loans to fund MFIs’ on-lending to its client-base, and capability-building developmental loans in the form of technical assistance and financial training for the MFIs and their clients.