China Bank putting up mini branches in Savemore outlets
MANILA, Philippines - China Bank Savings (CBS), the thrift unit of China Banking Corp., is putting up at least 15 full-service mini branches inside Savemore Market outlets within the year as part of its aggressive near-term expansion program, company officials said.
During the press launch of the bank’s In-Store Branching Strategy, CBS president Alberto Emilio Ramos said this new branching approach is expected to contribute 15 to 25 percent to the bank’s total earnings.
“This strategy would great impact on fee-based income as this is concentrated in acquiring more accounts, thus widening the bank’s customer base,†he said.
Ramos said this branching strategy is expected to add at least one million customers within the next two-and-a-half years.
He said next year, they hope to set up 15 more mini-branches, also within Savemore branches which now count 88 nationwide.
The additional mini-branches would help CBS meet its goal of bringing its total number of branches to 100 by next year, Ramos added.
CBS and Savemore are both partly-owned by the SM Group of Companies.
According to CBS executive vice president Jaime Valentin Araneta, this strategy is consistent with CBS’ “madaling kausap†personalized service brand.
CBS began operations on Sept. 7, 2008, following China Bank’s acquisition of Manila Bank in late 2007.
An in-store branch is a full-service mini branch operating in retail outlets like supermarkets or gasoline stations. CBS’ mini-branches in Savemore Market, occupying an average 25 square meters of leased space and manned by two staff and a branch sales and service officer, offer all the products and services of a regular branch, and is equipped with an ATM, a cash acceptance machine (CAM), and an online banking terminal.
The mini-branches are open daily, even on holidays, from 10 a.m. to 7 p.m., providing greater convenience to customers. On the other hand, banking kiosks, usually located in malls, are not full service branches and not officially considered as branches.
“Our mini-branches allow us to increase market coverage in key cities at 80 percent cheaper than traditional branches. Considering that the capex (capital expense) and operating cost are much lower than the conventional bank branch, the payback period is much shorter,†Ramos said.
CBS ended 2012 with 33 branches. Keen on growing its branch network to reach out to more customers in more locations, the bank is looking at a 73-strong branch network in 2013 – around 40 more branches this year alone – and 100 by 2014.
A mini-branch, located at the Fil Oil gas station in Tanauan, Batangas, opened on July 5. Four more are now operational in Savemore: Araneta Center COD Anonas, Pedro Gil and Nepa Q-Mart.
Opening soon are 11 more mini-branches in Savemore and SM Hypermarket: Nova Plaza Mall in Novaliches, Taft-Masagana in Manila, Jackman in EDSA-Muñoz, Avenida in Manila, Adriatico (SM Hypermarket), FTI in Taguig City (SM Hypermarket), Acacia Estates in Taguig City, Mezza in Sta. Mesa, Nagtahan in Manila, Camarin in Kalookan City and Visayas Ave. in Quezon City.
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