Banks ramp up branch-lite units

MANILA, Philippines — Banks continued to step up the opening of branch-lite units, particularly in far-flung areas to reach more unbanked Filipinos, the Bangko Sentral ng Pilipinas (BSP) said.

Lyn Javier, in charge of the BSP’s Financial Supervision Sector, issued Circular Letter 2018 – 085 approving the application of 14 banks to open 184 new offices nationwide including 158 branch-lite units for the third quarter of 2018.

The BSP approved the application of state-run Land Bank of the Philippines to open six new branches as well as that of Sy-led BDO Unibank Inc. to open four and that of rural banking arm One Network Bank Inc. to launch 16 new branches.

The central bank also approved the application of One Network Bank of retail and banking magnate Henry Sy to open 67 branch-lite units all over the country followed by CARD Bank Inc. with 28, and CARD SME Bank Inc. with 17, Rizal Bank Inc. with 16, and Aboitiz-owned City Savings Bank Inc. with 15.

During the third quarter, big and small banks alike opened 70 branch-lite units nationwide. Banks that opened branch-lite units include government-led Development Bank of the Philippines, state-run Land Bank of the Philippines, Philippine National Bank of tobacco and airline magnate Lucio Tan, Ayala-owned BPI Direct Banko, among others.

The BSP approved the rationalization of requirements on banking offices and guidelines on the establishment of branch-lite units through Circular 987 last December.

A branch-lite unit refers to any permanent office or place of business of a bank, other than its head office or a branch. A branch-lite unit performs limited banking activities and records its transactions in the books of the head office or branch.

The concept would help banks be more responsive to the changing preferences of financial consumers and market conditions.