MANILA, Philippines - One Network Bank (ONB), the rural bank of BDO Unibank Inc. (BDO), is introducing microfinance in its portfolio as it pursues its aggressive expansion in the Visayas and Mindanao next year.
BDO chairperson Teresita T. Sy-Coson said ONB would be an ideal vehicle for microfinance products.
“We want to extend our banking services to fulfill our desire to increase financial inclusiveness in the Philippines,” Sy-Coson said.
At about the same time last year, the country’s largest commercial bank BDO absorbed the country’s largest rural bank ONB.
The acquisition opened Mindanao and some areas in the Visayas to BDO, since majority of ONB’s branches are positioned strategically in Mindanao. It likewise has a presence in the Panay Islands.
ONB provides BDO with an instant platform to access almost 700,000 clients in areas where the commercial bank has no presence. BDO, in turn, provides balance sheet strength, strong business franchises, the largest capital base in the industry, and a wider menu of products and services for ONB clients.
BDO president and chief executive officer Nestor V. Tan said while expansion thrust was already in place prior to the acquisition, ONB is now synchronizing its direction with that of BDO.
“We’re just trying to pull them into our system,” Tan said.
ONB will likewise re-introduce microfinance into its portfolio having placed it on the back burner. It was one of the first rural banks to introduce financial inclusion in Mindanao through microfinance.
It also has a huge salary loan portfolio for teachers, among the biggest among rural and thrift banks.
Tan said ONB would continue with its core business while strengthening its teacher salary loans.
“Focus is ONB’s core businesses, which is the underserved and the teacher’s salary loans. We’re not going to stray beyond what they are doing right now. Just try to maximize their means,” Tan said.