Metrobank, PNB ramp up IT spending
MANILA, Philippines — Metropolitan Bank & Trust Co. (Metrobank) and Philippine National Bank (PNB) are ramping up investments in information technology (IT) amid the continued shift of consumers to digital channels.
Metrobank has earmarked between P3 billion and P5 billion for its capital expenditures this year. The bank said about 70 percent of the total budget has been allocated for IT.
“To adapt to an evolving environment, the bank believes that fulfilling its promises will be dependent on a sustainable culture transformation and change management program, a robust IT infrastructure, as well as sound control and risk management practices,” Metrobank said.
Metrobank ended 2020 with 706 branches and 1,774 ATMs nationwide. It believes it has reached its optimal state in terms of network and is confident that it has the size and scale to pursue its growth plans.
Its online banking includes Metrobank Online and Metrobankdirect corporate. It also offers web-based application Metrobank Business Online Solution and Tax Direct facility.
Last year, Metrobank’s capital expenditures fell by 38 percent to P2.96 billion from P4.77 billion in 2019 due to a sharp drop in expenditures for its consumer and corporate segments due to uncertainties brought about by the pandemic.
Likewise, PNB has also allocated P5 billion for its capital expenditures this year.
Of the total amount, PNB chief financial officer Nelson Reyes said P3.5 billion would be used to bankroll the bank’s digitalization initiatives, while the other P1.5 billion would be for general purposes, including the improvement of premises.
“We’re looking at accelerating our digital capabilities, so much of the budget or the capex are really for IT,” Reyes told reporters.
PNB spent P1.5 billion for its capital expenditures last year, lower than the P2.63 billion spent in 2019.
PNB president and chief executive officer Jose Arnulfo Veloso said the listed bank is studying and carefully preparing a business plan that would include the establishment of a digital bank.
“We’re currently studying and the business plan is being put up. Who are we going to work with and how is the structure going to be? That really gives me a lot of excitement because that is the future. That is where we are all headed,” Veloso said.
Veloso said PNB is committed to accelerate digital transformation in terms of offering enhanced digital banking products and services for clients and improving the bank’s way of doing business.
Veloso also said the bank plans to establish partnerships with other institutions including pawnshops, malls and others to foster cross-functional collaborations, provide bundled solutions, and jointly acquire more customers.
“Likewise, we aim to improve the new normal experience for our employees by providing an agile, responsive, and efficient working environment,” Veloso said.
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