Electronic banking gains more users

Electronic banking gains more users

MORE THAN half of transactions at the Bank of the Philippine Islands (BPI) are now made electronically, prompting the country’s third largest bank in asset terms to rethink its branching strategy.

“Over the past 10 years, financial transactions at BPI increased by almost 12% and a big portion was done through the electronic banking platform,” said Natividad N. Alejo, BPI senior vice-president and consumer banking group head, at the sidelines of BPI Express Online Open 24/7 Promo Grand Awarding Ceremony yesterday.

Manual transactions or those that are done over the counter, have gone down to 34% at present from 70% 10 years ago, while electronic banking transactions have ballooned to 66% from 30%, Ms. Alejo said.

Electronic banking covers transactions completed using automated teller machines, the internet, mobile phones and the customer transaction assist machines (CTA) at about 300 of 809 BPI branches nationwide.

Ms. Alejo said the increase in the number of electronic banking users -- which is projected to grow more in the coming years -- was due to its convenience, the variety of transactions can be completed, particularly through internet banking, and BPI’s growing number of “young clients.”

With BPI’s internet banking, clients can pay their bills, load their mobile phones, transfer funds from one BPI account to another, among others, without the hassle of going to bank branches.

In the first half of the year, BPI’s internet banking enrollees increased by 35% to 700,000 compared to the same period the year before.

Despite the marked shift to electronic banking, Ms. Alejo said BPI is still planning on expanding its branch network, but will be very particular about locations. “Due to clients’ shift to the electronic banking platform, we would have to rationalize the branch location and the market share we would get if we decide to open a branch,” she said.

She also noted out that a market segment will always seek person-to-person contact over electronic banking. “There would never be a time when nobody would go to branches as there is still a client segment that prefers person-to-person transactions, where there is a sense of personal touch from the bank, ” she said.

“Clients would always need to go to our branches to open accounts,” she added. -- Ann Rozainne R. Gregorio

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