CBS ramps up presence in underserved markets

CEBU, Philippines — China Bank Savings (CBS), the thrift banking arm of China Banking Corporation, is ramping up its presence in Visayas and Mindanao as part of its aggressive nationwide expansion strategy.

With a strong foothold in Luzon, CBS is now shifting its focus to underserved markets in the south, combining physical branch growth with cutting-edge fintech innovations.

In an interview with CBS President James Christian T. Dee, he highlighted the bank’s commitment to bridging financial gaps in the region, emphasizing a balanced approach between digital transformation and traditional banking services.

"While we are enhancing our digital capabilities, we recognize that many of our clients, especially in the Visayas [and Mindanao], still prefer human interaction. That’s why our expansion is twofold—growing our branch network while improving our digital banking services," Dee said.

CBS operates 170 branches nationwide, with 93 branch-lite units—smaller versions of full-service branches—strategically placed in key growth areas.

In Visayas, CBS has 14 branches, including five in Cebu, while its Mindanao presence remains limited but poised for expansion.

By 2025, CBS plans to open at least five new branches in Visayas and Mindanao, relocating resources from its Luzon operations to tap into emerging markets in the south. One of the first new locations will be in Ormoc City by the third quarter of this year, followed by branches in Negros Island, Panay, and other urbanizing areas.

Last week, CBS relocated a branch to the Orion Corporate Center on A. S. Fortuna in Mandaue City, to better serve the growing banking needs of the community.

As part of its digital transformation, CBS is leveraging artificial intelligence (AI) to streamline customer interactions and enhance banking accessibility.

The SM Group partly owned bank recently launched "Casey," an AI-powered chatbot, to provide 24/7 real-time assistance to customers via Facebook and the CBS website.

Developed in collaboration with Tech One Global Philippines and powered by Microsoft Copilot, Casey assists clients with inquiries, product recommendations, and banking transactions, ensuring a seamless digital experience.

“Our partnership with Tech One Global aligns with our strategy to enhance CBS’ digital capabilities and provide a seamless banking experience,” Dee explained. “With Casey, we are making a significant leap in our digital transformation journey.”

CBS is also investing in fintech-driven loan processing to speed up approvals for auto loans, SME financing, and housing loans. These efforts align with the Bangko Sentral ng Pilipinas' (BSP) push for greater digital adoption in the banking sector.

Driving Growth Through Payroll Deduction Loans and SME Financing

CBS continues to strengthen its loan portfolio, particularly in automatic payroll deduction (APD) loans for public school teachers, a segment that has been a steady driver of growth.

According to Dee, the bank also maintains a strong presence in auto loans, SME loans, and end-user housing financing, catering to both overseas Filipino workers (OFWs) and local salaried employees.

Recognizing the increasing demand from real estate developers, CBS is also actively financing horizontal housing projects, supporting pocket developers and large-scale property ventures.

Beyond expansion and digitalization, CBS remains committed to financial literacy and inclusion.

Since 2023, the bank has conducted over 35 training sessions, educating more than 1,000 participants, including teachers, students, and employees, on budgeting, debt management, and financial best practices.

“We believe that financial literacy is crucial in helping Filipinos make informed decisions. Our training programs empower communities with the knowledge they need to manage their finances effectively,” Dee said.

With a 20 percent growth rate in 2024 and a record-breaking asset expansion over the past five years, CBS is well on track to achieving its vision of “Easy Banking for You,” serving more Filipinos through its Visayas and Mindanao expansion and AI-driven banking solutions, Dee added.