In a bid to create One BPI, Bank of the Philippine Islands (BPI) has announced on Jan. 20 that it will merge with BPI Family Savings Bank (BFSB). The merger with its wholly owned thrift bank subsidiary, which is subject to shareholder and regulatory approvals, will see BPI as the surviving entity.
“This merger has the best interests of our customers and employees in mind. As One BPI, our 8.5 million customers will be able to enjoy the full suite of the BPI group’s products, via all our digital and physical channels. Similarly, as One BPI, our employees will have the ability to work across a larger, more varied bank, while having continuity of tenure and job level,” said BPI President and CEO and BFSB Chairman Cezar P. Consing in a press statement.
As part of its digital transformation, BPI has adopted a phygital banking strategy. By going phygital, BPI aims to optimize digital channels for high-volume routine transactions while providing higher-value services through physical branches.
The merger, which BPI hopes to complete this year, will prime the bank to seize emerging opportunities and ultimately enhance the overall banking experience of customers.
The integration of both entities will provide considerable advantages to the customers and employees of BPI and BFSB, and present potential synergies that will benefit shareholders. The reduction in the gap in regulatory reserve requirements between commercial banks and thrift banks was also a factor in the timing of the transaction.
BFSB is the country’s largest thrift bank with Php287 billion in assets, Php235 billion in deposits, and Php227 billion in loans. BFSB has focused on providing housing and auto loans to Filipino families, and is a market leader in these loan segments. BFSB has approximately 3,000 employees.
“If our customers and employees are better off, our shareholders will also benefit. This merger is timed to provide us with the platform to help lead the economic recovery that is sure to come,” Consing said.