BPI Direct BanKo eyes having 300 branches by end of 2019

LOS BAÑOS, Laguna - BPI Direct BanKo, the microfinance unit of Bank of the Philippine Islands, is targeting to open an additional 100 branches in 2019.

“We are targeting 300 branches by year-end,” BanKo chairman and BPI Financial Products and Alternative Channels head Simon Paterno told reporters on the sidelines of the celebration of the microlender’s 200th branch in Los Baños, Laguna.

Banking on its significant growth since its conception two years ago with a network of 200 branches and 45,240 clients, BanKo is optimistic to expand further this year.

“We are growing very fast,” Paterno said.

BPI’s microfinance arm BanKo eyes to end 2019 with additional 100 branches, growing its branch network to 300 this year. @gmanews pic.twitter.com/8reqfSYAQK

— Ted Cordero (@Ted_Cordero) March 12, 2019

For his part, BanKo president Jerome Minglana said that apart from aggressively expanding the business, the goal of the microlender is to provide financial services to self-employed microentrepreneurs (SEMEs) through convenient and affordable loan products.

Minglana said that the additional 100 branches will be placed nationwide, with the majority placed in Luzon due to its proximity to Metro Manila.

BanKo Micro-Enterprises Loans Group head Rodolfo Mabiasen Jr. said the microlender is offering SEMEs a NegosKo loan ranging from P25,000 to a maximum of P300,000 with 2 to 3 percent interest rate a month.

Requirements are also simple as BanKo only requires its clients to submit a business permit from the Office of the Mayor or barangay and a government ID.

Customers can have their loans released within seven banking days upon submission of complete requirements.

From almost 46,000 SEME clients as of end-2018, BanKo is also targeting to increase its client base to around 85,000, according to Paterno.

“Our end goal is to be able to capacitize SEMEs financially and help them contribute to the economic growth of the country,” Paterno said.

The BanKo chairman also noted that the microlending arm is also BPI’s answer to the Bangko Sentral ng Pilipinas’ call to promote financial inclusion and provide alternative capital sources for small businesses who rely on loan sharks that offer high interest rates.

The 2017 BSP Financial Inclusion Survey found that 52.8 million Filipino adults out of 68.6 million are still unbanked.

“BanKo is a result of BPI’s partnership with the BSP to extend the banking system to all Filipinos,” Paterno said. —KG, GMA News