BDO Unibank keeps customers first with commitment to excellence and innovation

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Across the full suite of its universal banking services, BDO Unibank (BDO) has expanded its capabilities both through digital and physical channels. And impressive growth in core and strategic areas earned the bank notable successes in the FinanceAsia Awards 2024.

October 22, 2024

BDO is reaping the rewards of a focused vision to build a strong business franchise to achieve diversity and sustainability of earnings over the long-term.

This is based on its mission to be the preferred bank in every market it serves in the Philippines. While this is easier said than done, BDO’s approach has been to strengthen its competitive edge through its strategy of expanding market coverage through a combination of enhanced digital capabilities and  continued rollout of physical branches, collectively reinforcing its dominant industry standing.

The proof of the bank’s success is in its financial performance. BDO grew its core businesses to post net income in the first half of 2024 of P39.4 billion ($682 million), marking a 12% increase from the same period last year.

At the same time, the bank’s balance sheet remains strong and diversified, backed by solid capital and improving asset quality. For example, it delivered a 13% increase in gross customer loans year-on-year to end of June 2024 across all the market segments, while its non-performing loan (NPL) ratio settled at 2.06% with NPL coverage at 169%, better than the industry average.

Two-pronged success

BDO prides itself on its mix of physical and digital capabilities which, ultimately, enable it to deliver easy and seamless access to comprehensive suite of products and services. Most importantly, BDO continues to raise the bar in these areas.

Having an upgraded technology stack also helps the bank modernise its product range to meet evolving customer needs, broaden market reach and improve efficiency and productivity. Meanwhile, its investment in cybersecurity means it is at the forefront of sophistication, security and resilience in the country.

BDO’s physical market coverage has also taken further steps forward. This includes expanding into the unbanked and underserved markets, broadening financial inclusion by supporting micro, small and medium-scale enterprises (MSMEs).

After opening over 70 new branches in the past 18 months, mostly in rural and provincial areas, BDO now counts an extensive network of over 1,700 branches and more than 5,600 teller machines, the largest in the country. Further, this infrastructure strengthens the bank’s deposit franchise – its current account savings account (CASA) ratio is among the highest in the industry while its cost of deposit is the lowest.

BDO also has 16 international offices in Asia, Europe, North America and the Middle East, including full-service branches in Hong Kong and Singapore.

The bank focuses on leveraging its vast data-sets and client base to generate leads for cross-selling opportunities across its various business units through the expanded use of data mining and analytics. BDO Life, BDO’s life insurance business, has benefited from this approach as it grew its income by 19% in 2023.

Investing in the Philippines’ bright future

BDO’s community banking arm, BDO Network Bank, is promoting financial inclusion through its expansion to rural areas in the country. BDO Network Bank reaches out to individuals and MSMEs in far-flung regions to provide relevant financial products and services, such as zero maintaining balance accounts and loans with no collateral.

BDO Network Bank also partners with BDO Foundation to conduct financial literacy programmes. In 2023, BDO Network Bank opened 60 new branches in developing communities throughout the Philippines.

For the digitally-savvy segment of the population, BDO introduced digital innovations to facilitate mobile banking and technology-assisted branch banking. The bank recently rolled out Service Assist and Account Assist Machines where clients can apply for new accounts and loans, and do straightforward banking transactions. Clients now enjoy a more efficient Queue Management System, online account opening with a virtual Know-Your-Customer process, and biometric recognition on self-service cash deposit machines and ATMs.

These technological developments have cut transaction turnaround time in branches and led to over 90% new CASA accounts being opened digitally.

Securing top spot in wealth management

BDO Private Bank, a wholly owned subsidiary of BDO Unibank, distinguishes itself as the only Philippine bank exclusively serving high net worth individuals, with wealth centres in Singapore and Hong Kong.

With a strong onshore presence through its 13 Wealth Centers nationwide, BDO Private Bank delivers an unparalleled range of financial investment options, spanning diverse asset classes. Complementing this are comprehensive estate planning and asset management services, tailored to meet the complex needs of its elite clientele.

In 2024, the bank deepened its client relationships with an array of curated events – ranging from exclusive gatherings in Manila, Cebu and Davao to insightful webinars on timely market opportunities. This active engagement strategy continues to position BDO Private Bank at the forefront of wealth management in the country.

Recognised as the Philippines’ Best Private Bank by FinanceAsia, BDO Private Bank solidifies trust through exceptional service and bespoke investment advice.

As it moves forward, BDO Private Bank is redefining the client experience by blending cutting-edge technology with personalised service, ensuring banking services is not only efficient but deeply rewarding for its discerning clients.

Raising the bar for banking in the Philippines

All of BDO’s efforts to provide responsive products and to improve its service-delivery further bolster its position as the country’s leading full-service bank, dedicated to meeting the diverse banking needs of every Filipino.

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