by Jan Michael Carpo, Reporter
Banking giant Bank of the Philippine Islands (BPI) has finally received approval from the Bangko Sentral ng Pilipinas (BSP) to sell 15% of its ownership stake at GoTyme Bank Corp., thus paving the way for BPI to exit its investment in the digital banking venture entirely.
This transaction marks a strategic shift for BPI, which aims to focus on its core financial services offerings amidst a fast-evolving financial landscape.
The BSP greenlight, formalized through Resolution 1145, authorized GoTyme Financial Pte. Ltd. and Giga Investment Holdings Pte. Ltd. to acquire BPI’s share in the digital bank. The formal BSP approval letter was received last October 9, effectively allowing BPI to move forward with divesting 752 million of its common shares in GoTyme Bank — a stake it had initially acquired in early 2022.
“BPI will no longer own any shares in GoTyme Bank following the sale,” the company stated, signalling the end of its involvement in the digital bank.
In March, BPI disclosed its plans to divest by selling 7.96 million shares to Giga Investment Holdings and 744 million common shares to GoTyme Financial Pte. The entire transaction, valued at P902.47 million, set each share at P1.20, a price arrived at through negotiations between BPI and the acquiring parties.
Banking genius: The strategic rationale behind the sale
The Ayala-led BPI, one of the oldest and largest banks in the Philippines, has identified a potential conflict of interest stemming from overlapping products between BPI and GoTyme.
Both institutions have ventured into digital banking to meet the increasing demand for digital financial services among Filipino consumers.
However, as the digital banking market becomes increasingly competitive, BPI decided to divest from GoTyme to focus on its primary digital offerings and avoid market conflicts that could arise from competing products.
BPI’s exit also coincides with the recent merger between GoTyme Bank and Robinsons Bank Corp., a transaction that made Robinsons Retail Holdings and JG Summit Holdings, both under the Gokongwei Group, BPI’s second-largest shareholder.
The Gokongwei Group now holds around a 9% stake in BPI, creating a unique alignment as GoTyme Bank operates as a joint venture between the Gokongwei Group and Tyme Group. The sale, therefore, serves to streamline both BPI’s business focus and its ownership structure, allowing it to operate without potential conflicts in the expanding digital finance arena.
GoTyme’s rapid growth and ambitious targets
As one of the six digital banks licensed to operate in the Philippines, GoTyme Bank has demonstrated impressive growth since its launch in November 2022. In less than a year, the bank has built a customer base of 3.7 million, to onboard five million clients by the end of 2024.
GoTyme Bank’s financial performance underscores its impact, as its total deposits reached P17.3 billion as of August. This growth trajectory positions the bank to surpass its target of P20 billion in total deposits by the close of 2024.
Despite BPI’s exit, GoTyme Bank is expected to continue its rapid expansion under the leadership of the Gokongwei and Tyme Groups, focusing on digital accessibility for Filipinos. The bank’s competitive offering, which includes simplified account opening processes and no minimum balance requirements, has resonated well with a demographic increasingly seeking convenient, tech-driven financial solutions.
Last September, GoTyme Bank also partnered with the BSP to offer a more seamless way to convert their loose change into savings through Coin Deposit Machines (CoDMs).
The bank is actually the first financial institution to partner with the BSP and support its innovative coin deposit machines, which were launched to help combat the country’s artificial coin shortage and encourage coin recirculation.
The growing influence of digital banks in PH
The BSP has been proactive in pushing digital banking as a means to drive financial inclusion across the Philippines.
The rise of digital-only banks, including GoTyme Bank, Maya Bank, and Tonik, reflects the BSP’s broader agenda to transform the financial ecosystem by reducing dependence on traditional banking and expanding access to underserved sectors.
Digital banks have seen a significant uptake in the Philippines, a country where a substantial portion of the population remains unbanked.
The BSP’s commitment to digital transformation aligns with the government’s goal of bringing 70% of Filipinos into the formal financial system by 2025.
By investing in digital banking capabilities, entities like GoTyme are helping to bridge this gap, particularly in rural and underserved areas.
Future prospects for BPI
As BPI divests from GoTyme, the bank is anticipated to reinforce its own digital banking portfolio to better align with its customer-focused strategy.
With financial technology reshaping consumer expectations and banking services, BPI’s pivot may enable it to expand its proprietary digital offerings in a way that is more compatible with its traditional banking model, while avoiding market conflicts with emerging fintech ventures.
The sale marks a new chapter for both BPI and GoTyme Bank, with each institution positioned to grow in distinct directions.
While GoTyme Bank remains on an aggressive expansion trajectory under the Gokongwei Group, BPI’s divestment allows it to concentrate on delivering value to its customers through streamlined and non-overlapping financial solutions.