CEO INTERVIEW
Bank of the Philippine Islands’ President talks reinvention and digital ambitions CEO TG Limcaoco says that 6 million of BPI’s clients now use digital channels.
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PHILIPPINES
or Southeast Asia’s oldest bank, reinvention and innovation are the key ingredients to how it remains one of the Philippines’ biggest banks since its establishment over 170 years ago. In the modern era, Bank of the Philippine Islands has set its sights on an ambitious goal: to be the undisputed leader in digital banking. “The pandemic has accelerated digital banking adoption among Filipinos, and all indicators say that there’s simply no turning back. If we truly want to be the Philippines’ undisputed banking leader, we must ensure that each and every one of our customers, without exception, has digital access to our services and products,” Jose Teodoro “TG” Limcaoco, president and CEO of BPI, told Asian Banking & Finance in an exclusive interview. Since assuming the leadership of BPI in 2022, Limcaoco has pushed BPI’s position as a pioneer in local banking — the very quality that has allowed it to thrive in every era. “We doubled down on digitalisation over the past two decades as online banking transformed into mobile banking. We brought banking services that were only available on desktops to smartphones,” he said. “BPI’s spirit of innovation has enabled the bank to become a pioneer in various aspects of banking. In the 1980s, BPI launched the Express Teller system and introduced the first 24-hour ATM service in the Philippines. We later on launched the country’s first debit card system. In the 1990s, BPI began offering phone banking and then introduced Express Online,” Limcaoco added. More recently, BPI introduced the mobile wallet in 2012 for retail payments, the country’s first bank-initiated contactless payment system. Its latest reinvention has borne fruit in 2022. BPI reported a record net income of PHP39.6b (US$716.36m) in 2022, 66% higher than in 2021, thanks to strong loan growth, higher net interest margin, and lower provisions. In its most recent quarterly results, BPI posted a net income of PHP12.1b (US$218.77m), 52% higher than in the first quarter of 2022. As of December 2022, BPI has nearly six million clients enrolled in digital channels and nearly four million active users across all digital platforms, and has facilitated 375 million transactions. Limcaoco sat down with Asian Banking & Finance to share more about BPI in the modern banking era, his thoughts on the future of financial services across the region, and what inspires him in his daily life as CEO of Southeast Asia’s oldest bank. What’s it like to be the CEO and president of a bank that bears such a long history? As the President and CEO of the oldest bank in Southeast Asia, I am acutely aware of the challenges that come
10 ASIAN BANKING & FINANCE | Q3 2023
Jose Teodoro “TG” Limcaoco, President and CEO of Bank of the Philippine Islands
We must navigate a rapidly changing regulatory landscape that demands greater transparency, accountability, and compliance
with leading an institution with such a long and storied history. We have weathered many changes over the years, including wars, economic crises, and political upheavals. However, the current era of massive digital and regulatory changes presents a unique set of challenges and opportunities that we must address to remain relevant and competitive. On one hand, we must embrace digital transformation and leverage emerging technologies to improve our operational efficiency, enhance customer experiences, and enable innovative products and services. This requires significant investments in technology and talent, as well as a willingness to adapt our business models and processes to the digital age. On the other hand, we must navigate a rapidly changing regulatory landscape that demands greater transparency, accountability, and compliance. We must be vigilant in ensuring that we meet these requirements whilst maintaining our commitment to customer confidentiality and trust.
