Bank of Makati (A Savings Bank), Inc. is accelerating its digital transformation and expanding its product offerings as it works to regain its position as the sixth-largest thrift bank in the Philippines by total assets. The Makati city government-owned institution competes in a thrift banking sector where consolidation has reshuffled rankings in recent years.

President Luis M. Chua, speaking on the sidelines of an industry event last month, acknowledged the bank's current standing falls short of expectations. "Based on our latest data… we're not satisfied with our ranking. In terms of assets, I think we're just number eight now because of some mergers that happened. But in terms of our profit target and RoE (return on equity) so far, we are above our target," he said.

"I think we were already in the sixth before, but… they reported to me that we're at eighth in terms of asset size," Mr. Chua added.

Central bank data placed Bank of Makati's assets at P60.83 billion as of end-March, ranking eighth in the thrift banking sector.

The bank intends to launch its digital banking platform starting January. "We are in the process of migrating to a new core banking as well as a new loan system. Based on the last check in our timetable, it will happen in January next year, the full implementation. So, after that, we will implement mobile banking and internet banking," Mr. Chua said. The migration aligns with the Bangko Sentral ng Pilipinas' (BSP) broader push to digitize retail payments across the country's financial system.

Bank of Makati is also positioning itself to capture greater share of the teachers' loan market following the BSP's decision to extend the maximum repayment period for salary loans — a move expected to drive stronger credit demand. Public school teachers represent a substantial borrower segment in the Philippines, and the longer terms are designed to ease repayment burdens on outstanding obligations.

The central bank raised the maximum repayment period for salary-based general-purpose consumption loans to seven years, up from the previous three-year limit. The adjustment came in response to calls from the education sector for greater payment flexibility on outstanding borrowings.

"We're already finalizing the features. The infrastructure is critical. Meaning, the unit itself, as well as the expectations of the people. We're also hiring some people," Mr. Chua said regarding the bank's preparations.

"It's good for those who are already in the game. Because of course, that could increase their revenue for another two years due to the expansion. But in our case, it's also a welcome move. The portfolio growth will be fast and we can extend larger amounts," he added.

On the regulatory front, Mr. Chua described the central bank's push to lower retail digital transfer fees as a positive development for the thrift banking industry, citing the potential for increased transaction volumes.

"For me, in the long run, I think it's net positive because hopefully, it will increase the use of electronic transfers. If the speed of the transaction will also improve, the volume of the portfolio can also expand rapidly," he said.

"It's like in ATMs before, you have to shoulder the cost of your deposit. The [digital banking] infrastructure is costly. So, you're hoping that you can recover those costs. But it will not form part of the regular cost to operate," Mr. Chua noted.

— A.M.C. Sy