BPI makes history anew with opening of Philippines’ first virtual bank branch

MANILA, Philippines — From being the first bank in the Philippines and in Southeast Asia founded in 1851, to being the first bank in the country to offer access via Automated Teller Machines (ATM), Bank of the Philippine Islands (BPI) recently marked another first.

In addition to its more than 750 brick-and-mortar banks nationwide, BPI recently opened its first ever bank branch in e-commerce site Lazada.

“Whatever you can do in a branch, you can do in a virtual bank,” BPI Agency Banking Head Rally Jereza told Philstar.com in an exclusive interview.

Like any physical bank, the new BPI store in Lazada allows customers to open an account or apply for a credit card or auto, housing and personal loans wherever they are.

“Every single Filipino will now be able to bank online, to experience what it is to be in a BPI branch physically,” explained Lazada Philippines Chief Executive Officer Carlos Barrera in a separate interview.

“We leveled the playing field by offering the same products online that can be found in a physical bank,” he said, adding that those who live far from banks can benefit most from the new virtual bank.

When asked why the bank decided to have a digital branch just now that the COVID-19 pandemic is almost over, Jereza reasoned: “It’s not about the pandemic but about giving customers a wide channel of choice.”

He explained that having more distribution channels like Lazada would enable BPI to reach more customers and in effect, become more profitable and sustainable.

“It’s about financial inclusion,” he said. “We aim to make our products and services more accessible for customers.”

Barrera enthused that having a virtual bank aligns with their company’s aim to build a financial literacy culture in the country.

Apart from being able to “add to cart” the bank’s products and services in the e-commerce site, the new virtual bank offers gift cards and other discounts and perks when used in the platform.

“We want to embed (our brand) into the daily lives of customers. So banking is no longer a chore,” said Jereza, who personally prefers e-banking and shopping with a digital wallet over Cash on Delivery (COD) as paying digitally enables him to earn points, keep a record of his expenses and also since bringing cash can lure thieves or robbers.

In terms of security, “all LazMall brands are authentic and deliver their promises,” Barrera assured, adding that their Sure Ka Sa Lazada program allows consumers to make refunds and exchanges. 

“We have the best cyber security processes to make sure they won’t face any challenges,” he affirmed. 

“The safety of an agency bank is you get inside the bank through the platform (Lazada),” Jereza added.

Since Lazada has 80 million subscribers, “It’s like a town or country with 80 million people. Now, you have BPI there. Safety is assured because it’s the same systems and processes that BPI has when you enter a BPI bank. So it’s nothing new; we’re just creating more avenues for distribution.”

To attract that 80 million would provide the bank a good opportunity, he said.

“The behavior of adoption to digital was accelerating most especially during (the height of) the pandemic,” Jereza enthused.

“I’m not surprised if other banks will follow. In fact, we welcome them. It’s actually good for the country if we’re able to provide services to Filipinos that are easy, convenient, affordable.”

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