The Philippines’ most dynamic rural bank continues its commitment of financial inclusion as it enters 25th year
According to the Bangko Sentral ng Pilipinas (BSP), there are more than 15M account holders in the Philippines by end of 2022. 42% of these accounts are under Cebuana Lhuillier Bank’s basic deposit account, the revolutionary Cebuana Lhuillier Micro Savings product introduced in 2019. Based also on the same study, Cebuana Lhuillier Micro Savings also account for 33% of the total deposit liability of PHP11.96B.
Since the launch, the micro savings product has become a force to reckon within the industry, changing the way Filipinos approach to saving their money by offering an easily accessible and convenient way to save. To do this, Cebuana Lhuillier Bank, in partnership with its parent company, Cebuana Lhuillier identified the usual barriers to saving and developed the micro savings product to tackle these barriers.
The launch of micro savings also signaled the start of Cebuana Lhuillier Bank’s journey towards being the leader innovator within the rural banking sector. From its humble beginnings in Cavite established over 20 years ago, the bank has grown to be the largest in the country in terms of network through its agent partnership with Cebuana Lhuillier with more than 3,000 branches nationwide. This alliance has helped nearly seven million account holders achieve their first step in financial security.
For Dennis Valdes, president of Cebuana Lhuillier Bank, this achievement emphasized the bank’s bullish approach as a modern rural bank that constantly pushes the envelope in the local rural banking industry.
“Cebuana Lhuillier Bank has been in the forefront of pushing for financial inclusion among our kababayans, especially in rural communities and far-flung locations in the Philippines,” said Valdes. “Because we believe that the first step towards financial inclusion is ensuring that every Filipino should have the means to safe and accessible banking, we started our push with Cebuana Lhuillier Micro Savings and by making use of a cash agency partner that gives us a significant and reliable footprint nationwide.”
This move has earned Cebuana Lhuillier Bank numerous nods not only in the local banking industry, but also back-to-back wins in 2021 and 2022 as Rural/Cooperative Bank of the Year from the Asian Banking & Finance (ABF) Awards.
More than that, the bank’s revolutionary move through its micro savings product has cemented its reputation as an innovator in its industry, with a knack for utilizing technology to further improve the way it delivers its services to its roster of clients. The bank’s bold and modern approach to banking also earned the attention and trust of the BSP, naming Cebuana Lhuillier Bank as its one of its key industry players in 2021.
The national governing body also tapped Cebuana Lhuillier Bank and Valdes as part of its resource on financial inclusion, leaning on the bank’s expertise in reaching the rural communities through a combination of increased network presence and use of technology.
In 2019, Cebuana Lhuillier Bank also introduced the first iteration of the eCebuana app, which allowed for quick and seamless money transfers online through its micro savings product. In 2022, eCebuana’s total transactions increased by 58% and its throughput amount increased by 105% from 2021 to 2022.
Aside from the app, the Bank also partnered with BancNet and UnionPay to widen its card network coverage and reach through increased ATM and POS access worldwide. It also expanded online fund transfers by partnering with Instapay and PesoNet. In 2022, InstaPay total transactions increased by 40 percent, with settlement accounts increasing by 54 percent.
The Bank also became one of the early adapters of QR technology in the Philippines, after being tapped by the Bangko Sentral ng Pilipinas (BSP) for the pilot launch of QR PH in 2022.
Cebuana Lhuillier Bank also focused on improving its product offerings to its clients. After micro savings, the bank launched its Teachers Loan product, which provides short-term loans to Non-Teaching and Teaching personnel from the Department of Education.
As the Bank enters its 25th year, it stays focused on its bullish outlook in changing the way it delivers its services to Filipinos, especially those with limited means, and push them towards their own means to be financially included.
“The journey of the bank towards being an industry leader for financial inclusion does not stop with the wins we have accumulated in the past. Winning and setting milestones are good, but as a bank, we are working on our legacy of being the partner of choice for the ordinary Filipinos are looking for other more accessible options to save,” Valdes added.
“We are bringing financial literacy and financial freedom closer to them with tools that they can immediately and easily use. We want to be the catalyst towards their very own journey towards saving for a better future for themselves and their families.”