CBS eyes 29 new branches in 2014

MANILA, Philippines - China Bank Savings (CBS) is planning to open at least 29 more branches this year to bring its total network to 180, which includes the 78 operating branches and two branch licenses as a result of the acquisition by China Banking Corp. (China Bank) of Planters Development Bank (Plantersbank) early this year.

CBS is the thrift bank of China Bank, a universal bank part of the SM Group of Companies.

Of the 29 new branches to be opened this year, half will be traditional or regular branches while the remaining half are mini-branches. The mini-branches will likely be located within Savemore outlets spread out nationwide.

CBS president and chief executive officer Alberto Emilio Ramos said the challenge for the mini-branches is finding space in existing Savemore outlets as well as immediately contracting space in future outlets.

“We have the ability to open a total of 40 mini-branches in the next two year, subject only to the availability of space or future outlets of Savemore,” Ramos said.

CBS is part of an integration team spearheaded by Savemore, which is likewise a member of the SM Group.

The original target set for 2015 was a hundred branches for the thrift bank, and over 400 new branches for the unibank. With a revised target, CBS is looking at surpassing the 200-branch mark by next year.

Ramos said that the bank draws inspiration from the fact that 30 percent of their walk-in depositors in the mini-branches are first-time bank depositors or formerly un-banked.

“That was an eye opener,” the bank chief executive said.

Meanwhile, CBS is holding talks with Manulife China Bank Life Assurance Corp. (MCBLife), the bancassurance partner of China Bank and Manulife Financial, one of the world’s biggest insurance and financial players.

Ramos said that they are looking at selling low-cost traditional protection life insurance products at their branches.

The Bangko Sentral ng Pilipinas (BSP) has relaxed regulations, which in effect allows life insurance providers to sell their products through thrift banks as long as it is not investment-laced.

“The consumer market of thrift banks are low-income individuals that cannot afford expensive protection products much less consider investment-link insurance products. It must be inexpensive,” the bank president said.

CBS’ mini branches offer the best of both worlds – face to face interaction with tellers, and fast and convenient service through e-banking channels.  Each mini branch is equipped with an automatic teller machine (ATM), cash accept machine, and online banking kiosk.

The banking hours of mini-branches located in Savemore outlets are from seven in the morning to nine in the evening, including weekends.

Savemore is a chain of neighborhood grocery stores under the SM Food Retail Group.  Savemore outlets are strategically-located outside SM malls to bring the SM shopping experience closer to where shoppers live and work.