Wealthbank earmarks P100 million for capital expenditure

CEBU, Philippines - Wealth Development Bank (Wealthbank) earmarks P100 million capital expenditure (capex) to further strengthen its market presence nationwide.

The bank, which is operated by the Metro Gaisano group, is geared towards completing its upgrading project specifically on information systems involving software and hardware to improve service, while the bank is on active move for nationwide expansion.

The investments is also in line with the bank's expansion plans of establishing five more branches this year or early next year in strategic locations in Metro Manila and Wealthbank’s entry into the ATM services.

Wealthbank president Sabiano Villamor announced that included in the bank’s capex is the acquisition of seamless system/equipment in preparation for its membership to the Philippine Clearing House Corporation (PCHC) to upgrade the bank’s status to direct clearing participants at par with the rest of the member banks with direct clearing facilities.

“This will allow our bank to take advantage of a longer clearing cut off time for checks deposits of our clients,” he said. All other requirements including the PCHC membership fees are ready for implementation pending the final signing of the Memorandum of Agreement (MOA) between Wealthbank, Bangko Sentral Ng Pilipinas (BSP) and PCHC which is expected within the second quarter, Villamor added.

Banks that are non-members of the clearing house have to course through their clearing checks through their respective conduit banks.

 However, they do not enjoy the luxury of longer clearing cut off time since their conduit banks demand earlier delivery of checks by the non-member banks to give ample time for processing these checks.

Because of the heavy investment required to become a member of PCHC, Villamor said many smaller banks opted to link up their clearing checks through a conduit bank.

Because of this, Villamor said that Wealthbank feels that by becoming a member of PCHC, the bank’s clients will no longer be rushing up everyday in making check deposits.

“We find this service improvement to be of greater value to our clients,” he said.— Ehda M. Dagooc