Landbank expands
MANILA, Philippines–Land Bank of the Philippines, the country’s largest state-run lender, is aggressively expanding its network this year, targeting areas that have yet to see formal financial services.
This is in line with its goal of promoting development in the countryside, and comes amid talks of a possible merger with Development Bank of the Philippines (DBP).
“Our goal is to penetrate and bring financial services to areas with limited or no access,” Landbank president and CEO Gilda Pico said.
In a statement, Landbank announced its use of so-called other banking offices (OBO) in more remote parts of the country.
Dubbed as Landbank Easy Access Facilities (LEAF), these quasi branches are designed to complement its network of branches and extension offices.
Each LEAF allows clients to conduct non-transactional banking activities such as ATM withdrawals, self-service cash deposits, submission of loan applications and requirements for opening accounts, and inquiries about loans, savings, and other products and services.
LEAFs will also have a Cash Deposit Machine, the Landbank Express Access Machines, which accept tax payments and would eventually be able to accept PhilHealth contributions and other bill payments, Pico said.
The bank plans to open 20 LEAFs this year, in addition to the six LEAFs opened in 2014 in Davao del Sur, Quezon, Cebu, Tarlac, Cagayan, and La Union.
In the meantime, the bank said it remained aggressive in expanding its network.
In 2014, the bank opened 10 new branches and extension offices in Pangasinan, Pampanga, Batangas, Albay, Leyte, Zamboanga del Norte, Pasay, Cubao, and Muntinlupa.
Landbank became present in all of the country’s 81 provinces last November with the opening of a branch in San Jose, Dinagat Islands.
The bank is looking to open 12 more branches and EOs this year, which will bring to 363 the bank’s total number of branches nationwide by the end of 2015.
This month, the House Committee on Banks passed a resolution that sought the merger between Landbank and DBP, a smaller state-owned lender. These institutions’ functions overlap. Both will also become stronger as a combined entity, a report by the agency tasked with overseeing state-owned companies said earlier this year.
