Bank taps local MSMEs to reach unbanked areas

CEBU, Philippines — BDO Unibank Inc. is accelerating its push into underserved communities by expanding its “Cash Agad” network, tapping sari-sari stores, pharmacies, gasoline stations and other neighborhood businesses as banking touchpoints in areas where traditional branches and automated teller machines (ATMs) remain scarce.

The lender has deployed more than 12,000 Cash Agad agents nationwide and is targeting 15,000 locations, according to Vince Yuzon, Head for Visayas and Mindanao Agency Banking under BDO’s Consumer Banking Group.

In Cebu alone, the bank aims to establish a Cash Agad partner in every municipality as part of its broader financial inclusion strategy.

“We have over 12,000 agents nationwide, and our end goal is to hit around 15,000,” Yuzon said during a media briefing. “Within Cebu, our goal is also to have a Cash Agad partner in every municipality.”

The initiative reflects a growing shift among Philippine banks toward agency banking, a model that leverages existing micro, small and medium enterprises (MSMEs) to deliver financial services closer to consumers.

By converting community-based businesses into banking access points, lenders can expand their footprint without the significant capital expenditure required to build branches in remote locations.

Under the Cash Agad platform, accredited agents are equipped with point-of-sale (POS) devices that allow customers to withdraw cash, make deposits, pay bills and conduct balance inquiries. Transactions are processed electronically, with deposits credited in real time through BDO Pay, providing customers with immediate confirmation.

The service is particularly aimed at communities where access to formal banking infrastructure remains limited, reducing travel time and transportation costs for residents who would otherwise need to visit urban centers to complete basic banking transactions.

Yuzon said the rise of digital wallets and fintech platforms has helped pave the way for wider adoption of agency banking. The popularity of electronic financial services during the pandemic familiarized Filipinos with conducting transactions outside traditional bank branches, helping build trust in alternative financial access channels.

“The confidence built by fintech and e-wallet platforms helped customers become more comfortable doing financial transactions in neighborhood businesses,” Yuzon said.

Cash Agad agents currently include a diverse range of enterprises, from sari-sari stores and pharmacies to hardware stores, water-refilling stations and fuel retailers.

To qualify, businesses need only a valid mayor’s permit or DTI registration and a BDO Unibank or BDO Network Bank account.

The model also creates an additional income stream for MSMEs. Agents receive a portion of transaction fees, with partners earning an average of P17 per transaction, according to BDO.

For customers, convenience fees average about P35 per transaction, with withdrawal limits comparable to ATM transactions at up to P10,000 per transaction, subject to the limits set by the issuing bank.

As competition intensifies among banks and fintech firms for retail customers, BDO’s expansion of its agency banking network underscores a growing industry focus on extending financial services beyond urban centers and into the country’s most remote communities, where millions of Filipinos remain underserved by traditional banking infrastructure.