• BPI adds 1.5 million customers in 2023, half onboarded digitally
• Creating more inclusive products in the core mass segment
• Robust branch network is a strategic advantage for broadening customer base

Bank of the Philippine Islands (BPI) is ready to pivot from its well-known affluent banking proposition to embrace inclusive growth, said executive vice president and head of consumer banking Ginbee Go, who highlighted the bank’s expanded engagement in the core mass and broader base income segment.

BPI, the Philippines’ second-largest retail bank, reported a total retail loan size of PHP 433 billion ($7.8 billion) as of December 2023, and a growing customer base that has reached 11 million. Its operations are supported by a 709-strong branch network and an additional 158 branches from its recent merger with Robinsons Bank. Its microfinance arm BanKo, also has an extensive network of 348 branches. 

Expanding the customer base across ecosystems

BPI now has 4.6 million monthly active users across its platforms. The bank’s engagement with customers has changed significantly in recent years, from focusing solely on existing depositors to identifying users interacting within BPI ecosystems as potential customers. Since 2021, it has rapidly expanded distribution capabilities with third-party service providers to onboard new customers and make them part of a broader consumer finance ecosystem.

To expand market access, BPI partnered with retailers operating physical stores and e-commerce platforms. Four out of its seven core digital engagement platforms currently serve retail customers. These are BanKo, VYBE wallet, BPI Trade and BPI mobile app that received a major upgrade in 2023. 

In 2021, the bank also began offering #MySaveUp and Ginvest on GCash, the largest payments platform in the Philippines, and opened a virtual store on e-commerce platform Lazada, the first financial institution to do so.

Focus on inclusivity and sustainability

The acquisition of Robinsons Bank in January 2024 will enable BPI to have synergies across products and platforms. “We understand the value of interoperability, and our mission is to be as inclusive as possible,” said Go.

Go said that BPI’s robust digital and physical network are a huge advantage as it grows its customer base in the core mass segment; half of the acquisitions happen in branches. 

These strategic moves come at a time when consumer demand for financial services in the Philippines is growing, despite rising interest rates and inflation. In the first nine months of 2023, retail loans increased by 16% year-on-year, with credit card receivables and personal loans expanding at the quickest rate. According to the IMF, the Philippine economy is one of the strongest performers in 2023, with real gross domestic product growth of 5.3% and a projected 5.9% expansion in 2024.

BPI reported that its consumer loan portfolio grew by 10% from December 2022 to July 2023, with overall retail loan growth for 2023 likely to be around 20%. Personal loans grew by 115% to PHP 16.1 billion ($309 million) between September 2022 and 2023, with strong fee income growth in credit cards, insurance, and remittances.

Go explained: “Our commitment to sustainability and financial inclusion drove us to develop and offer new products like MyBahay and MyKotse, which lengthen terms and lower monthly amortisations for housing and auto loans, respectively.”

In the affluent market, BPI is shifting its focus from mobile and wallet services with mostly transactional features to more lifestyle and personalised services. With VYBE, BPI’s digital stand-alone wallet launched in 2022, the bank offers easier onboarding for new clients, creating a one-stop lifestyle and rewards platform. In its first major mobile app revamp in six years since 2017, it offers personal financial management tools to track and plan cash flows and spending. To date, more than 6.6 million users have migrated to the new app, with an active rate of about 70%. The new version also fully integrates a wallet function.

In wealth management, the bank is developing remote advisory services and plans to launch an app later this year with virtual stores, relationship managers, and loan advisors for digitally loans. BPI began developing its hyperpersonalisation capabilities in 2023 through its innovation arm, Growth Labs. 

BPI’s move to intensify efforts into core mass and broader-based income segments, while maintaining a dominant position in the affluent market, demonstrates adaptability and foresight, and also highlights the challenges of catering effectively to all segments. The bank, which owns 60% of the affluent customer market, underscores the importance of balancing innovation with traditional banking strengths such as branch-driven customer acquisition.