Expansion Plans for Investment in Digitalization reduced by DBP

Development Bank of the Philippine (DBP) will reduce its expansion plans because it appears to invest in digitalization and use more fintech companies.

In a press release released on Thursday, DBP President and CEO G. Herbosa said the bank was "trying to reduce its expansion plans in the medium term" rather than directing its resources to expand its reach by investing in technology and strengthening existing ones. Banking infrastructure and systems.

"The current market situation and current trends make it necessary to reassess the feasibility of brick-and-mortar banking," he said.

DBP said on Thursday that "revaluing the bank's strategy" meant it would withhold plans to open more branches, but the investment amount had not been released.

He said lenders would use fintech companies, non-bank financial institutions (NFIs), rural banks and IT (information technology) applications available to improve their services.

"DBP sees its partnerships with fintech companies, NBFIs and potential alliances with progressive rural banks as a way to overcome the so-called" last mile "in providing basic banking services, especially in remote and non-banking communities," Herbosa said .

He said this partnership helped lenders implement previous programs, specifically to accelerate the release of payments from beneficiaries.

"This collaboration can be a model for future efforts that will require large amounts to pay individual recipients in a short time," he added.

DBP has 129 branches with 11 branches and 837 ATMs throughout the country.

In 2019, the bank was the ninth largest bank in the country with 761.5 billion pesetas.

"In the future, DBP as a development bank must expand its capacity in the business of private customers and at the same time use institutional customer niches such as city units, water areas and small, small and medium-sized companies." said Mr. Herbosa. ,, ,,.

Bank net income fell seven percent to 1.46 billion pesetas in the first quarter after increased risk from a coronavirus pandemic increased. - B.M. Laforga

The Philippine Development Bank wants to develop its business.