The Bank of the Philippine Islands (BPI) is encouraging small and medium enterprises (SMEs) to invest in digital transformation amid the “new normal” brought by the coronavirus pandemic.
BPI Business Banking Sales Group Head Luis G. Cruz, in a recent webinar, said that firms should adopt a digital mindset to boost the efficiency of their operations.
“Given the situation now with physical distancing, digital or e-commerce is actually benefitting from the situation,” Cruz explained. “The ‘New Normal’ doesn’t tell you to change your business entirely. It’s more about having a plan or including as part of your growth the digital aspect of doing business.”
Companies can incorporate digitization in settling bills, supplier payments, salary payments and other financial transactions, the bank noted.
To note, BPI sells an online facility service for business clients it calls “BizLink.”
BPI Business Banking Head Eric M. Luchangco said this platform could enable businesses to make routine transactions online, including downloading bank statements and collecting through automatic bills arrangement, among others.
“As businesses adjust to the changing consumer behavior, it is also important to prepare their back-end processes,” Luchangco said. “And when they build their digital capabilities now, they will be ready for the resurgence in their businesses when the pandemic ends.
“The capacity of BPI’s digitalization is really being tested and we were able to cope with the increasing demands on our systems,” Cruz added. “We want our SME clients to have that same digital advantage in their own businesses.”
The bank said its digital transactions surged by 90 percent during the lockdown that began March 17 and which constricted economic activities.
Even BPI saw its first-quarter earnings slide by 5 percent to P6.39 billion year-on-year after it provided higher provisions for loan loss.
BPI said in a separate statement it has extended anew grace period for loan payments in accordance with government’s measures, which include the modified enhanced community quarantine in Metro Manila and other cities beginning May 15.
All payments on credit card and loans due from March 17 until May 31 are given a 30-day extension.
Should the lockdown be extended, the coverage period will be automatically adjusted accordingly, BPI added.