The Bank of the Philippine Islands (BPI) is aiming to add one million more bank clients by 2025 as part of its expansion plans. The same is in line with its vision of “helping bank the unbanked,” which it intends to fulfill by onboarding self-employed micro-entrepreneurs (SEMEs) and by assisting them in achieving their long-term financial goals.
“Banking the unbanked is the first area in which we see our involvement in public-private collaboration,” said Jose Teodoro K. Limcaoco, President and CEO of BPI.
From its current roster of 140,000 clients, which includes both SEME borrowers and non-borrowers who are either depositors or insurance clients, BPI is expecting a growth of 614 percent in the next three years through its “NegosyoKo” loan package. The BPI’s NegosyoKo loan package grants SEMEs access to easy, convenient, and affordable ways to fund their operations and grow their businesses.
BPI is currently one of the country’s longest-running and biggest banks. As of end-June, it reported a net income increase of 73 percent year-on-year to P20.4 billion. Its total assets also went up to P2.5 trillion or an increase of 13.1 percent.
Providing relevant, innovative, and accessible financial solutions
In compliance with BSP’s Sustainable Finance Framework, the Ayala-led bank will also soon be expanding its sustainable development finance (SDF) programs. “This further reinforces our commitment to aid in the country’s growth by providing relevant, innovative, and accessible financial solutions for all Filipinos,” Limcaoco said in a statement.
Last year, BPI’s funding for sustainable infrastructure amounted to P2.5 billion. It has likewise released a total of P75 billion just for its SDF programs.
Meanwhile, in the areas of financial education, BPI Foundation, its social responsibility arm, will continue to work with underserved communities, self-employed and start-up micro and small enterprises that need guidance on proper financial management and even capital to kick start their big ideas and livelihood.
“At BPI, we believe sustained financial education and enterprise development and livelihood interventions can help stimulate inclusive growth,” beams Limcauco.
“We’re now looking for avenues through which we can work with key government agencies in promoting sustainable banking practices,” he added. BPI has since started laying the groundwork and is now urging the government and the private sector to work together for a more sustainable and inclusive Philippines.
Limcauco noted that BPI continues to support the government’s newly refreshed 6-year National Strategy for Financial Inclusion (NSFI), its infrastructure programs, and sustainable development initiatives. He also reiterated the bank’s support of the government’s “Build, Build, Build” program through both project and sustainable financing.
The BSP launched NSFI 2022-2028 in January as a shared blueprint for broad-based growth and financial resilience. The updated NSFI also embraced the Philippine Development Plan (PDP) and the “AmBisyon Natin 2040” program of the government.
The primary objective of the updated NSFI is financial resilience since many Filipinos, especially the poor, are now facing increased vulnerabilities from the COVID-19 pandemic and climate change.
Specifically, the new NSFI has a clear-cut focus on micro, small and medium enterprises, start-ups, and agriculture financing. The MSME sector is now considered a major source of livelihood for a large number of Filipinos after registering 63 percent of total employment in the country.
Last month, the BSP also announced the third phase of its sustainable finance roadmap. The latest rules on sustainable finance, once released this month, will include perks for banks that will increase their green financing.
So far, the BSP said that based on the reports submitted by banks in the last six months, they are “making good use” of the three-year transition window under the Sustainable Finance Framework. The Philippines committed to reducing its carbon emissions by 75 percent by 2030 under the UN Framework Convention on Climate Change.