#DIGITAL BPI Value Creation from Digitalization - June 8, 2021 - Macquarie Group
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ASEAN Digital Wallet #DIGITAL BPI Value Creation from Digitalization June 8, 2021
BPI
BPIhas
hasa large network
a large and client
network andbase
client base…
Growing Client Base One of the largest Branch and ATM Networks
8.6M
8.7M 1,172 2,756
Retail Clients Branches ATMs & CAMs
872 300
BPI/BFB* BanKo**
200k
1.0M
Corporate &
MSME Clients
21,249
Employees
Data as of June 2020
2 *869 local branches and 3 international offices; **Branches and branch-lite units (BLUs)
…and a broad array of financial offerings
RETAIL BANKING CORPORATE BANKING BUSINESS BANKING MICROFINANCE
ASSET MANAGEMENT BANCASSURANCE LEASING/RENTAL
3
Our Industry continue to evolve in a rapid phase. Economic growth and
BPI has a large network and client base…
consumer spending continue to attract Fintech players
2017 2020
8.6M
Retail Clients
1,172 Branches
2,756
ATMs & CAMs
872 300
BPI/BFB* BanKo**
1.0M
Corporate & 21,249
MSME Clients Employees
Total of 50~ Total of 200~
Data as of June 2020
4 *869 local branches and 3 international offices; **Branches and branch-lite units (BLUs)
5 years ago , we embarked our Digital Transformation journey, we took stock
on our Digital Assets, evaluate our capabilities to compete, and scan the
competitive landscape
Online Mobile
5 THIS DOCUMENT IS THE PROPERTY OF BANK OF THE PHILIPPINE ISLANDS. STRICTLY CONFIDENTIAL.
Mobile First and differentiated Customer Experience positioned BPI as a
major player in the Digital space
6 THIS DOCUMENT IS THE PROPERTY OF BANK OF THE PHILIPPINE ISLANDS. STRICTLY CONFIDENTIAL.
What we have learned and adopted … the power of their User ID and Password
to access other platforms.
This serves our inspiration when we develop our Open Banking APIs and
Partnerships
• Sign-up and login to other
platforms
• Understand customer
behaviours and segmentation
• Locked-in strategy
7 THIS DOCUMENT IS THE PROPERTY OF BANK OF THE PHILIPPINE ISLANDS. STRICTLY CONFIDENTIAL.
From humble beginning is 2016, We ended 2020 with significant
milestones
95% digital 400% 4.5M
During Lockdown Transaction Volume Growth Digital Customers
DIGITAL
95.1%
92.3%
85.2%
Launched BPI to Cash in 4 weeks
DIGITAL - RETAIL
ATM
BRANCH
DIGITAL – CORP/MSME
J F M A M J J A S O N D
8
Key drivers of Digital adoption
#5 finance app on
App Store #6 finance app on
Google Play
4.5M enrolled
#1 #2 #3
Self-service facilities made Partnerships created value Mobile first strategy
quick and easy added services reinforced
Top three partners:
Active Users (in M) Shift to Mobile from Online (Browser) Banking first
+42% YoY growth in Count 2.7 exhibited in 2016, sustained through 2020
1,200
E-wallets Partner APIs
+85% YoY growth in Count 3.2x YoY growth in Count
Channel Enrollments (in K) 2.5
6.7x YoY growth in Amount 45
3.3x YoY growth in Amount 50
Line - Count (in M)
+84% YoY growth in Count Line - Count (in M)
84%
1,000
160
140
Bar - Amount (in B PHP) Bar - Amount (in B PHP)
861 40
2
140
38.9
40
60% 62%
120
35
800
120
111
100 30 30
1.5
100
1.14
600
20.2
25
80
20
80
20
9.3
40%
1
60
38%
400
10.9
60
15
10
434 40
40
16%
26
10
19
0.5
200
0
20
5
20
3
- 0 0 0
0 -10
2015 2016 2017 2018 2019 2020 2019 2020 2019 2020 2013 2014 2015 2016 2017 2018 2019 2020
*YoY growth: 2020 vs 2019
THIS DOCUMENT IS THE PROPERTY OF BANK OF THE PHILIPPINE ISLANDS. STRICTLY CONFIDENTIAL.
Investments made on delayering our Technology platform , and API
based components created an extended ecosystem*
500M 70+ 180~
Trans Partners Services
eWALLET UTILITIES GOVERNMENT
AGGREGATOR TRANSPORTATION HEALTH
REMITTANCE E-COMMERCE OTHER PAYMENTS
*sample list , not exhaustive 10Market Leadership : National Real Time Payment
2020 BPI Volume 2020 BPI Value
In M transactions In ₱ Billion
2021 – First mover BPI Net PDDTS 43.8
#2
29.0
#1
• QR for Instapay
transactions
• Proxy (mobile and
Receiver Inward Volume
Participant email) for Instapay Participant*
transaction
#3
Sender
BOY InstaPay 2.0 Features:
• Bills Pay PH via QRPh
#1
eGov
Participant Overall • P2P via QRPh Participant* 21.3
InstaPay BPI InstaPay
• Request to Pay
5.5 5.9 • Customer-Presented QR
13% 1.6
• Cross Border
#2
Inward Value
Of InstaPay
users are BPI Participant*
J F M A M J J A S O N D J F M A M J J A S O N D
*YTD Apr 2021
11Continuing our multi-year digital journey through the pandemic
4.5M 2.9M #2
Enrollments Active*** Most Active Users** Top 10 Finance Apps in 2020: Active Users
By App Annie
GCASH
809M 1.8B online transactions BPI
Where we were before: 2016 to 2020
BDO
2.6M 4.5M digital enrollments PAYMAYA
PAYPAL
1.5 2.5M digitally active users COINS
METROBANK
0 1 B PHP API Revenues UNIONBANK
CITIBANK
0 136 APIs in production HOME CREDIT
/LANDBANK
Jan Feb Mar Apr May Jun Jul Aug Sep
0 154K APIs in consumption
#1 #2
finance app on App Store*** finance app on Google Play***
As of Dec 2020
*Rolling 3 months on a growing client base
**Based on benchmarking of Select finance apps in Google Play and the App Store (Jan to Nov 2020); behind Gcash
*** As of April 2021
12Our pillars of transformation allowed us to thrive during COVID-19
TECH PARTNERS | Accelerating digital take-up through best-in-class tech partners
SECURITY | Fortifying our platforms to foster client trust
API | Enabling payments, wallets and prepaid services
ANALYTICS | Insights and Models via enterprise data platform and data science
13Facilitate the flow of funds during the lockdown
• Built in 4 weeks
• Leverage existing API stacks
• Agile via MVP model
• >200k transactions in 5 months
• Total value of P1B
14eGovernment Portal
• Built in 6 weeks
• Showcase key government
agencies for ease of selection
• In 2 months , #1 Bank in
transaction count and value
15eADA (Automatic Debit Arrangement) Portal
• Built in 4 weeks
• Doing away with time consuming,
inefficient enrolment process
• Creating value for the Biller and
Consumer
16Redefining COD – “Cashless On Delivery”
For the client
Allows buyer to see the goods
1
before payment
No need to withdraw cash/look
2
for change
For the merchant
Allows secure Real Time
Payments direct from the Reduced cash handling for
3
bank account at the point of riders and hubs
checkout or at the point of
delivery
17With a 170 years of service, We will evolve with the times
Before 1400 1400 to 1950 1950 to 2000 2000 to 2025 2025 +
INFORMAL COMMUNITY- UNIVERSAL OMNI-CHANNEL UBIQUITOUS
BANKING LED BANKING BANKING BANKING BANKING
• Nascent currency/ • Single Bank • Primary Financial • Multiple FI • Banking utility
trading systems Relationship Institution relationships embedded in the
• “Under the mattress” (Geographically • Branch as the primary • Channel agnostic world
savings geared) channel access • Technology-led
• Only accessible via money experience/
bank branch advice
18We look to regional digital transformation
champions to benchmark our progress
DBS Bank Siam Commercial Bank Kasikorn Bank
Singapore Thailand Thailand
STRATEGIE
• Bank with Digital core, reimagining • Transformation program with strategic • Strategic digital ecosystem partners such as
legacy tech with API partnerships and ecosystems that deliver new Grab (co-branded mobile wallet), Lazada
• Embed digitalization in customer journey digital customer experiences and Shopee(offer lending facilities for online
• Transformation culture • i.e. Gojek, Sea Group and 7-Eleven sellers)
S
Everyday banking embeds daily financial needs – Enabling group synergy BPI M/S, BPI Trade, BPI
payment for transport, fuel, telco and shopping LAC via API Services
Digitally enabled the legacy technology architecture via Expanding digital ecosystem with GrabPay, AsiaPay,
API based services LiquidPay. Funds Transfer via Palawan, Cebuana
Lhuillier
CURRENT INITIATIVES ECQ Culture Transformation – customer
engagement via webinars, vidcon Created a Fintech Play via Cartera
19 Source: Innosight: ASEAN’s Transformation Champions, June 2020PhyDigital is the future of banking
Previously, we enhanced
physical spaces with digital
features.
Now, we deliver the physical
customer experience digitally.
• Zoomfication of Financial Services
• Enhanced customer interaction and premium advisory services through
video conferencing and collaboration platforms
20A Universal Bank with a value proposition across different market segments
1
High-net worth clients
BPI Preferred Banking
BPI Private Banking
3
Unbanked Filipinos
BPI Personal Banking
BANKO
2
Micro, Small & Medium
Enterprises
BPI Direct BanKo
BPI Business Banking
4
Corporates
BPI Corporate Banking
21A center for corporate and business solutions
FINANCIAL CASH MANAGEMENT and
INCLUSION TRADE FINANCE
ü Access to easy, convenient and ü Corporate Bizlink with one of the most
affordable loan products for SEMEs comprehensive offerings in the market
ü BPI Direct BanKo has served ü Trillions in processed annual transactions
100,000 customers in 300 branches
nationwide ü First to launch SWIFT GPI for cross-
border payments
ENTREPRENEURS MICRO PAYMENTS
ü BEAMS new Platform Q2 ü BPI eWallet and Rewards Platform (Q3)
22Creating Value and Nation Building
OUR CAPITALS | Establishing our foundations financially, intellectually, humanly, socially and naturally
ü Php 2.2T in total assets (+1.3% vs 2019) ü 99.7-99.9% uptime for BPI Online, Mobile App and ü 119,291 gigajoules of electricity consumption
ü Php 279.8B in total capital Bizlink ü 252,975 cubic meters of water consumption
ü 1.2K branches, 2.7K ATMs and CAMs ü 19.9K employees with Php 48.4M in trainings
ü Almost 170 years in service with 139 int’l partners
HOW WE CREATE VALUE | Staying true to our vision and mission through operations and strategies
VISION: Building a Better Philippines ü Deepen client relationships
STRATEGIES
ü Grow high margin businesses
MISSION: We nurture every Filipino’s future with a trusted approach to ü Strengthen funding franchise
managing money and innovation that makes life easier every day. ü Execute on digital strategy
ü Rationalize distribution channels
VALUE-DRIVEN RESULTS | Benefitting clients, employees, investors and regulators
ü 8.6M total clients with Php 1.4T in total customer loans ü Php 101.9B total revenue (+10.5% vs 2019)
ü 2.9M unique active users of BPI Online and Mobile App ü Php 21B total payments to gov’t with Php 62B
ü Php 18B microfinance loans and Php 189B SME loans capital raised (21% remittance mkt share)
ü Php 17.8B total payments to employees and Php 20.2B ü Php 21.5B raised through COVID Action
to capital providers Response Bonds
OUR SDG CONTRIBUTIONS | Aligning ourselves with the UN
ü Php 199.9B disbursed towards Sustainability Development Goals (SDG) projects
23To be the “BEST” Bank , not the Best Digital Bank
Total Return to Shareholders compared to peers BPI continues to be the most valuable PH bank with the highest
TRS post-COVID, percent Price-to-Book ratio of 1.30x
46.1 BPI is also #1 in TRS performance in past 5 years 7.79 PFINC Member Banks 12F P/B vs ROE (2020)
2020 Return on
Equity (ROE)
30.6
28.3
24.0
21.5
ROE (%)
4.4
12F P/B (x)
1.30x
2020 Price-to-
Book ratio
24Our pillars of digital transformation is in place
PEOPLE ANALYTICS
Touch Insight
PLATFORM JOURNEYS
Technology Understanding
25 THIS DOCUMENT IS THE PROPERTY OF BANK OF THE PHILIPPINE ISLANDS. STRICTLY CONFIDENTIAL.We want to be the focal point of financial intermediation
Corporates
Retail
Customers
Micro, Small
& Medium
Enterprises
3rd Party
Partners
26A digital BPI will be a strong and resilient
BPI, whatever the future
THE UNKNOWN
RESULTS
PILLARS
STRATEGIES
27May 2021 READY TODAY. READY TOMORROW.
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