BanKO eyes 4,000 ‘branches’

MANILA, Philippines - BPI Globe BanKO (BanKO) is looking at realizing a “branch” network of 4,000 by the end of 2014.

The “branches” are actually partner outlets and Globe Telecom cash-in, cash-out outlets, and the automated teller machines (ATMs).

That is because BanKO is the only thrift bank that is mainly technology-driven. Thus it relies on creative distribution channels and technology to create a financial inclusive condition.

The thrift bank is a joint venture among the Bank of the Philippine Islands (BPI), Globe and Ayala Corp. It utilizes Globe’s GCash mobile platform and BPI’s mobile ATM cards.

The system has worked well as BanKO reported a P2-billion deposit base and a total loan portfolio of over P1 billion.

As of May, BanKO has 2,500 partner outlets or establishments, like pawnshops, where a bank client can transfer cash, deposit or withdraw loan. Some of the popular partners are the nationwide network of Tambunting Pawnshops, CVM Pawnshop, Generika drugstores, Czarina Foreign Exchange, and Raquel Pawnshops.

In certain areas, local government units (LGUs) are actually partners including Pulilan town in Bulacan and the government of Quezon City.

The 7,000 Globe cash-in, cash-out nationwide network for acquiring airtime, are also BanKO partner outlets.

“BanKO is about partnership,” John M. Rubio, BanKO president and chief executive officer, said in a press briefing. In fact, it only operates five branches, including its head office.

It has an existing partnership with 30 microfinance institutions (MFIs) reaching thousands of individuals.

Rubio said that they are targeting a minimum one million total account by yearend. As of presstime, It stood at 650,000. Incidentally, BPI and BPI Family Savings Bank manages more than 4.5-million individual depositors.

Another area that the technology-enhanced thrift bank is expanding into extending credit lines to retail stores directly or through their whole sale suppliers.

Last month, BanKO entered into a partnership with the Puregold supermarket chain. Through Puregold’s wholesale clients, such as sari-sari stores, are offered additional capital  for purchase of goods.

Then there is the ongoing credit line offered to wholesale distributors like Nestle Philippine and Unilever Philippines Inc. for their micro-retail distributors.

“BanKO will provide credit lines to micro-retailers at competitive rates, allowing them to purchase additional inventory of goods from their distributors to generate more sales and grow their income,” the BanKO chief executive explained.