Gotianun-led East West Banking Corp. (EastWest) is not interested in applying for a digital bank license because it is already operating as both a full-service big bank with a robust online banking side, but it wants a level-playing field when it comes to the digital banking space, according to its highest-ranking official.
EastWest CEO Jerry G. Ngo, in an informal press chat Tuesday, Oct. 17, said, “the main focus is not to put (more) players but to ensure that there’s a level-playing field. It shouldn’t be around payment systems (because we already have) payment trails. What the country needs is access to credit.”
When asked if the bank will apply for a digital bank license once the central bank reopens the application window next year, Ngo said there is really no difference between what they are doing now compared to a digital bank. “What they can do, we can do, and more,” he said in a mixture of Filipino and English.
The bank CEO said at some point, a technology convergence will happen here, if not already happening in the country.
“And, with the capability of having both the physical and the digital capabilities, I think that confluence is more important,” he said.
Ngo said EastWest is actively launching capabilities that are at par with digital banks and in some instances – “it’s even better than what the digital banks are able to do.”
He placed emphasis on the provision of credit as a bank, not just in providing the fastest payments service. “We’re focusing on rolling out capabilities and services that would in fact approximate or even better than what digital banks are doing,” he added.
Presently, the bank has more than one million depositors plus another million as consumer borrowers. About a third of the one million depositors are already online or have access to the bank’s digital services.
“They deal with us in many different ways,” he said, and most would still require face-to-face banking which only a brick-and-mortar branch can provide.
Frankly, Ngo said that “the difference between a digital bank and full service universal bank is becoming less and less visible. Our hope is that there will be confluence of the two and people should have a choice if they want to do digital or physical.”
He said the trend in other countries in fact, is that both digital banks and fintechs or financial technology firms are buying banking licenses to be able to do more banking and financial services.
EastWest has been expanding its consumer-centric business to ensure it will stay on top as the country’s main bank in the consumer market by investing more in data and technology.
Ngo has said before that the bank is investing heavily and looking at new capabilities in technology and data to enhance productivity and to address the evolving demands of bank clients. Without mentioning any numbers, he said it is crucial for the bank to continue to invest and increase profits to improve and update IT, digitalization and cybersecurity.
These are important in growing its consumer lending and maintaining a lead in the mortgage and auto loans segment.
EastWest currently operates 468 branches, both unibank and rural bank.