PNB to establish all-digital bank, sets P3.5-B capex for digitalization

The Lucio-Tan led Philippine National Bank (PNB) is pushing further with its digitalization shift as it expressed intent to establish its all-digital banking operations.

This was confirmed by PNB President and CEO Jose Arnulfo “Wick” Veloso at a virtual press briefing on Friday.

“Currently, we are studying the business plan and it's being worked up,” Veloso said.

The PNB chief said establishing a digital bank is “very timely” as many financial institutions are already shifting towards further digitalization to free them from the cost of maintaining brick and mortar branch operations.

Veloso said the bank’s business plan will also include tapping partners. He, however, did not elaborate as the bank’s business plan is still at its early stages.

“Hopefully that gets finished as soon as possible,” he said.

For his part, PNB Chief Financial Officer Sonny Reyes said the bank is setting aside P3.5 billion in capital expenditures this year to fund its digitalization initiatives.

“Another P1.5 billion will be for other projects such as improvement of premises and so on,” Reyes said.

As the bank pushes towards its digital shift, Veloso said PNB is assessing its 716 branches to find redundancies in their activities.

“If all of these digital initiatives materialize... those redundant offices, are going to have a singular point of activity. We will further review or assess how we much can reduce,” he said. — DVM, GMA News