by Jan Michael Carpo, Reporter
BDO Network Bank, the rural banking division of BDO Unibank Inc., is accelerating its branch expansion program, aiming to further its reach into underserved areas across the Philippines.
The bank plans to open 20 new branches this month, bringing its total network to between 560 and 570 branches by year-end.
Jesus Antonio Itchon, president of BDO Network Bank, highlighted the bank’s commitment to expanding its presence in underdeveloped regions, particularly in popular tourist destinations.
“What occurs is that we promote the investors building resorts when we open a branch. Therefore, we can make it easier for investors to invest in the region,” Itchon said while explaining how by concentrating on underdeveloped areas, particularly in popular tourist destinations, BDO Network Bank hopes to surpass this year’s expansion efforts in 2025.
Despite the increasing trend of digital banking, Itchon emphasized the continued importance of physical branches in rural areas with limited internet connectivity. “The market we are targeting is underserved, not just by the banks, in my opinion. It’s also underserved in terms of infrastructure,” he further stated.
BDO to address connectivity challenges
To address the connectivity challenges in these areas, BDO Network Bank is exploring innovative solutions such as Starlink satellite technology. “The lack of landline or mobile network connectivity in many of these areas necessitates creative solutions,” Itchon noted.
By establishing a physical presence in these underserved communities, BDO Network Bank aims to build trust with potential clients and stimulate local economic development. “Access is necessary for financial inclusion, yet our marketplaces require physical contact to gain access. People must be placed on the ground,” Itchon added.
In July this year, in a significant move to enhance financial accessibility for Filipinos, BDO Unibank Inc. introduced digital innovations like self-service machines across its branches nationwide. This initiative, according to the bank, aims to provide a seamless blend of physical and digital banking experiences — or “phygital” options — to its customers.
Also, by offering an additional transaction-completion channel, BDO ensures a more efficient and customer-centric branch experience. “We always strive to improve how we assist our customers,” said BDO branch banking group head Cora A. Mallillin. “By incorporating technology, we provide a digital banking experience that saves time and enhances convenience.”
“BDO’s digital banking solutions are now accessible on mobile phones and branches. Our bank branches have self-service stations and universal machines, among other digital banking technologies,” Mallillin further stated.
Integrating technology into the bank’s over-the-counter services
BDO has always believed that integrating technology into the bank’s traditional over-the-counter services can help streamline processes, reduce wait times, and offer a more efficient customer experience.
The new service and account assist devices will allow customers to input transaction details before interacting with branch staff, eliminating the need for manual form filling. With these machines, customers can scan QR codes for online branch booking, encode transaction details, queue their transactions, and benefit from priority queuing.
Additionally, the account assistance machines will help customers pay credit card bills, access online accounts, and open new accounts. BDO Network Bank, formerly known as One Network Bank Inc., has a long history of serving underprivileged and unserved communities.
The bank offers a range of financial products tailored to the specific needs of rural and remote areas, including loans, deposits, cash management, remittance, and bill payment services. It also offers various options for banking and payment methods that cater to their clients’ preferences, whether they prefer physical or digital channels. These include branches, ATMs, mobile apps, websites, agency banking, and payment channels.
As of June 2023, BDO Network Bank holds the position of the largest rural lender in the Philippines, with total assets amounting to P113.8 billion.