Digital bank GoTyme Bank is aiming to lead the banking industry not just in the digital market space but as a whole, according to bank officials on Wednesday, March 29.
GoTyme is a joint venture of Tyme, a multi-country digital banking group, and the Gokongwei Group of companies, namely Robinsons Bank, Robinsons Land Corp., and Robinsons Retail Holdings. Similar with the other five digital banks in the Philippines, GoTyme was granted its digital banking license only in 2021.
In an online press briefing Wednesday, GoTyme CEO and president Nathaniel Clarke said in time, with their retail partners – “we can actually (become) the biggest bank in the country.”
“Will we become the biggest digital bank in the next couple of years? I would say that’s absolutely the plan, and probably more,” said Clarke.
He said GoTyme is competing not just against the other digital banks but also with the traditional or conventional banks as well.
“We are a digital bank but we see ourselves more competing with the traditional banks. If you would ask me who our competitor is I would say Union Bank in the short term and in the longer term, its more likely BDO,” said Clarke.
BDO Unibank Inc. is the largest lender in terms of assets, loans and deposits and is tied to one of the region’s biggest retail business, the SM Group. Meanwhile, the Aboitiz-controlled Union Bank of the Philippines, which is the ninth biggest bank, also owns UnionDigital Bank, one of the six digital banks in the country.
Clarke and co-CEO Albert Tinio said their unique hybrid model allows them to offer both a fully digital proposition and an in-person distribution via Robinsons retail and other partners.
To advance their No. 1 plan more, both officials announced the bank’s latest savings product the GoSave Account, with an annual interest savings payout – currently five percent -- that is linked to the Bangko Sentral ng Pilipinas’ (BSP) current policy settings and pegged to the present economic situation. As of March 23, the BSP’s key rate is at 6.25 percent. The last time the policy rate was at this level was in 2008.
The simplicity of the product is that depositors can name their goals and set a target on how much they want to save. “This is a big step for banking here in the Philippines. In the coming months, we will continue to make big steps to deliver next-level banking,” said Clarke.
By May this year, GoTyme through its app will introduce QR payments and bills payments.
“There’s a lot of game-changing products coming soon (and) we’re rounding out the basics. The things we’re missing so far is QR and bill payments. When it comes to game-changing disruptive ones, we’re going to be launching an investment proposition by the middle of the year. By the end of the year, we’ll be adding our first credit proposition to the market,” according to Clarke.
GoTyme within five months from its launch date last year has 340,000 depositors. They operate 145 kiosks at the moment but this will increase to over 400 by end-2023.
As to how many depositors they have today, the digital bank would not say. As previously announced, the digital bank is targeting five million customers in three years and 10 million in five years.
“We’re (opening) another 18 kiosks (in Robinsons supermarkets nationwide) in the next two weeks,” said Tinio, which should help onboard more clients.
Tinio also said the targeted 400 kiosks is supported with over 500 locations where GoTyme users can deposit and withdraw for free over the counter at any Robinsons supermarkets and department stores.
Both officials expect the GoSave and its offer of five percent savings rate will accelerate its customer onboarding in the next months.
“We expect our balance sheet or deposit growth to significantly increase now that we are what we believe, the leading savings proposition in the country now,” said Clarke.
Digital banks, unlike brick and mortar banks, have no physical branches but BSP requires these banks to set up one office in Metro Manila. Basically, financial products and services are processed end-to-end through a digital platform or electronic channel.
The BSP has granted six digital bank licenses in 2021 before closing the application window for two years or until end-2023 to give it time to assess the market and to properly supervise these online-only banks.