BDO to scale down network expansion in metropolis, boost shift to digital

BDO Unibank Inc. will likely scale down its expansion in the metropolis in line with the shift to digital, but the Sy-led lender said it will continue building up its network in the countryside.

According to BDO president and chief executive officer Nestor Tan, the company will shift more to digital in the longterm with increasing competition from digital wallets and payment companies.

"I think over time we will see some adjustments in the mix of resources we use,"  he said during the company's virtual annual stockholders' meeting.

"Gradually, as digital picks up we will probably see a slowdown in our branching expansion, but at the moment, as we move into the countryside, it's probably premature to say that branches will cease to exist," he added.

As of September 2019, BDO has a total of 1,390 domestic operating branches and offices, and two full-service branches overseas.

Tan noted, however, that the slowdown in the expansion is likely to be seen in densely populated areas such as the metropolis.

"I think we will see the movement more in the more dense areas of metropolis. As people move to digital, the need for branches, and therefore the density required for each branch, will be adjusted," he said.

In the same meeting, Tan said that the bank will push for a more aggressive shift to digital.

"Our strategy remains the same, although the means to achieve it may actually be adjusted, and one of the adjustments we see is the move more to digital," he explained.

"We are cognizant of the threat from the digital wallets and the payment companies, as well as the fintechs, and that's the reason why two years ago we initiated a series of IT projects," added Tan.

Among the initiatives the company undertook are the adoption of quick response (QR) code capabilities, the upgrade of digital banking to reflect more modern architecture, the upgrade of the IT platform to integrate with most applications, and the cybersecurity initiatives.

BDO ended the first quarter with a net income of P8.8 billion, 10% lower than the P9.8 billion it reported in the first three months of the year. --KBK, GMA News