Bank of Makati leans on PH economic growth

Bank of Makati officials are relying on the sustained expansion of the Philippine economy to boost the savings bank’s loan portfolio as it focuses more on microfinance services to increase its customer base. (Photo: Bank of Makati/Facebook)

MANILA — Bank of Makati officials are relying on the sustained expansion of the Philippine economy to boost the savings bank’s loan portfolio as it focuses more on microfinance services to increase its customer base.

In an interview on the sidelines of the inauguration of the bank’s new headquarters at the corner of Ayala Ave. and Metropolitan Ave. in Makati City Friday, Bank of Makati President Luis Chua said micro, small and medium-sized businesses play a big role in the domestic economy.

“This is the segment we wish to serve well through our diverse savings and loans products,” Chua said.

To date, the microfinance sector accounts for 30 percent of the bank’s loan portfolio but Chua said they target to increase this to some 50 percent by 2022.

Chua said they want to widen their presence nationwide by tapping the branch-lite concept recently introduced by the Bangko Sentral ng Pilipinas (BSP). The bank currently has 62 branches in key cities and has 703 affiliates.

Under the branch-lite concept, banks can put up a small branch with lesser requirements than a regular bank branch to give the financial institutions more flexibility for their targeted clients.

Chua said they want to put up new branches in underserved areas of the country since people here are already being serviced by banks but most have not fully maximized available financial services.

He said they plan to open 40 branch-lite branches this year, citing that this concept is “more economical and cost-effective”.

“That is how we have grown and that is what we will pursue,” he said,

“While we are also into brick and mortar, I think we can’t get away with that. We want to take advantage as soon as possible because the name of the game is whoever gets the first,” Chua added.