35 years of Real banking

MANILA, Philippines - The art of saving money is both a discipline and a blessing. Once saving is seeped into one’s consciousness, one is assured of prosperity in the future. That prosperity then becomes an undeniable blessing.

In the subject of financial literacy, The Real Bank chairman Jose “Lolo Pepe” Araullo believes one can start teaching one’s kids about money as soon as they express curiosity or interest about monetary topic.

“Even two-year-old kids can be taught to put coins into a piggy bank.  They may not completely understand the concept of saving, but this is a good introduction to what coins look like and the idea of putting the coins into a piggy bank,” Lolo Pepe says. 

He adds that when a child asks for something in a store, explain to him or her that he or she has to pay for the item, that it is not free.

“At this age, you can even introduce the concept of ‘needs vs. wants.’ Instilling good money values can begin very early,” he says. 

Teaching the importance of financial literacy among young minds is one of the advocacies of the The Real Bank, which celebrates its 35^th anniversary on July 15 via a dinner cum musical at the Manila Peninsula befitting the thrift bank’s modest achievements.

The many successes the bank is reaping now are for real. Those who have witnessed how The Real Bank navigated through its many challenges in the past can’t be any prouder.

The key personalities in the continuing growth and expansion of The Real Bank include real estate genius Jose Acuzar, professional banker Alfredo Barretto and Lolo Pepe, a banker of integrity and founder of the audit firm Punongbayan & Araullo. They are also the hands-on forces behind the preparations for this significant chapter of the bank’s history.

The thrift bank opened its first branch in 1976 in Cainta as The Real Savings Loan Association, Inc. Between 1976 and 1994, only four branches were opened. The Real Bank officially became a thrift bank in 1995. Under the stewardship of Acuzar and Araullo, and with experienced banker Barretto as their lead man, The Real Bank has grown from just four branches in 1994 to its present 24 branch network with the last 10 years being devoted to branch strengthening and relocations, products development and getting more attuned to their depositors. The additional branches were distributed throughout the major growth municipalities of Bulacan, Laguna, Cavite, Rizal, Batangas and Metro Manila.

The recent figures — deposits in 2010 were pegged at a staggering P11 billion, compared to P100 million in 1994 — are indicative of the bank’s definite sustained growth.

The corporate advocacies of The Real Bank were just as big both in concept and impact. In 2004, the Bata, Bata, Mag-impok at Magsinop was launched and in no time became a byword in the banking circles as it was recognized in the Asian Banking Awards, the London Quality Crown Award and to top them all, bagged the prestigious Bronze Anvil. The project’s backbone is a book aptly called “Mga Kwento ni Lolo Pepe,” a series on thriftiness and savings distributed to grade school kids.

The project, in partnership with the Department of Education and Marylindbert International, was first introduced in 18 selected public and private schools in Metro Manila, Bulacan, Rizal, Cavite, Laguna and Batangas areas. As it gained acceptance among the beneficiary schools, a total coverage of 125 schools reached areas of Cebu and Davao including 20 selected NCR high schools where financial independence through the values of honesty and hard work in entrepreneurship is also promoted.

To date, the total coverage has reached more than 3.6 million students that are equipped with sufficient and applied knowledge on the important values of thrift and savings.

“As the kids grow to become teenagers,” Lolo Pepe says, “they can be taught about compound interest. Get them excited about how fast their money can grow if they start saving today.”

Lolo Pepe is aware that a young mind can be developed to become financially literate in a comprehensive and encompassing way. He says that saving should begin with the family. Parents, he adds, should be able to introduce kids to lessons that will make them earn money like selling old newspapers, selling baked goodies or palamig.

He also espouses that part of financial literacy is teaching the kids how to properly take care of their personal belongings. It also includes taking care of their health; that eating good nutritious food is cheaper than junk food. Children, he says, should also be taught early on about conserving water and electricity. He says that saving money can also be done by teaching the kids the value of exercise; that it is better to walk than take the jeep or taxi or tricycle if the place they’re going to is just near.

“Children learn directly from watching their parents and teachers.  They must walk the talk when it comes to managing their finances if they expect the kids to understand and appreciate the value of money, saving, and preparing for their financial future,” Lolo Pepe concludes.