China Bank Savings

China Bank Savings, Inc.
Industry Banking & Finance
Founded September 8, 2008, Makati, Philippines
Headquarters VGP Center, 6772 Ayala Avenue, Makati, Philippines
Number of locations
 76 China Bank Savings branches (as of August 2014)
Key people
 Ricardo R. Chua, Chairman
Nancy D. Yang, Vice Chair
Alberto Emilio V. Ramos, President
Products Financial Services
Website www.cbs.com.ph

China Bank Savings (CBS) is the thrift bank subsidiary of China Banking Corporation (China Bank). Positioned to be an alternative to traditional banking, CBS targets entry level and start-up customers to asset accumulators, offering products and services that match different life stages, like basic deposit products for those building up their savings, basic loan products to fund personal dreams, investment products, and more. It aims to operate and grow as a profitable community-oriented institution, offering diverse products and services and its "madaling kausap" (easy to talk to) brand of personalized service at very accessible locations, including supermarkets.

History

Beginnings

China Bank Savings began operations on September 8, 2008, following China Bank’s acquisition of Manila Bank in late 2007, with Samuel L. Chiong as president. From a lone branch in Ayala Avenue, CBS branched out to six locations in just one year. The expansion enabled CBS to grow its assets by 55.6% in 2009 and introduce three new products: Easi-Earn High Five, a five-year time deposit account that earns interest tax free; Easi-Save for Kids for little savers aged 12 and below; and Easi-Checking Diary, a checking account with a passbook for easier monitoring.

In 2010, CBS opened ten more branches, which increased the deposit level by 38%. It also launched Easi-Drivin’ Auto Loan and Easi-Save Basic, a zero initial deposit and maintaining balance ATM account. The number of account holders increased by 93% and deposits by a record high of 99%. CBS expanded its loans portfolio by offering Easi-Livin’ Home Loan and Easi-Funds Personal Loan the following year.

On August 1, 2011, Alberto Emilio V. Ramos became president of CBS. Samuel L. Chiong continued to be a member of CBS' Executive Committee and Board of Directors until his retirement on January 31, 2014.[1]

Recent developments

In November 2012, China Bank’s acquisition of Pampanga-based rural bank Unity Bank was approved by the Monetary Board and the Securities and Exchange Commission. The acquisition boosted CBS’ network with 15 Unity Bank branches and additional 24 branch licenses in the restricted areas granted by Bangko Sentral ng (BSP) under the Strengthening Program for Rural Banks (SPRB) Plus, a program that aims to effectively serve the countryside and improve the delivery of financial services to rural communities by strengthening the thrift and rural banking industry.[2] Unity Bank was merged with CBS on January 20, 2014.

In July 2013, CBS launched the mini branch concept to expand more efficiently. It opened one mini branch at Fil Oil Gas Station in Tanauan, Batangas and four mini branches at selected Metro Manila outlets of SaveMore Market. CBS is targeting 16 mini branches by 2014 to complete its ‘hub and spoke’ business model-serving a big area with a traditional branch complemented by mini branches that also offer a full range of services.[3]

In September 2013, China Bank forged a deal to acquire a majority stake in Planters Development Bank (Plantersbank), a development-oriented finance institution nationally acclaimed as the country’s lead bank for small and medium enterprises (SMEs).[4] The merger was approved in May 2014 by the BSP.[5] CBS will absorb the 78 branches and the two unopened branch licenses of Plantersbank.

Alongside the branch network expansion is the launch of new products to complete CBS' offerings to the consumer market. Easi-Funds Student Loan, an easy and affordable private education loan program, was launched in October 2013,[6][7][8] followed by Easi-Padala, the country’s first domestic money transfer service via a local bank, in April 2014. In partnership with Cebuana Lhuillier, CBS Easi-Padala was developed to provide a fast, secure, and affordable domestic money transfer service.[9]

CBS is also strengthening its electronic banking channels. It now has 74 ATMs and an internet banking portal - www.cbs.com.ph - available 24/7.

CBS mini branches

The prevailing low margins and stiff competition have made the overhead costs of an extensive branch network, especially for a new bank like CBS, increasingly burdensome. To cut costs, remain competitive, and still be very accessible to customers, CBS has been beefing up its network of automated teller machines (ATMs), offering customers the option to bank via computer and mobile phone, and has restructured its operations, launching a promising concept for a bank branch: the CBS mini branch.[10]

CBS mini branches offer all the products and services of a regular branch, and are equipped with an ATM, a night depository, and an Online Banking Terminal. They are open daily, even on holidays, from 10:00 a.m. to 7:00 p.m., providing greater convenience to customers. These mini branches can be built and operated at a comparatively low cost—one fifth of the cost of setting up a conventional branch. Operating efficiencies are also achieved, even though a mini branch is open daily and for longer hours as fewer employees are required—only three full-time personnel per mini branch compared to six to twelve for a regular branch. Thus, CBS mini branches can attain the same level of profitability as a conventional branch.

As of August 2014, CBS has 11 mini branches at selected SaveMore Market and SM Hypermarket outlets.

References

  1. ↑ "Chinabank Savings names new president". Sminvestments.com. Retrieved 18 January 2015.
  2. ↑ "China Bank acquires Pampanga rural bank". Philstar.com. Retrieved 18 January 2015.
  3. ↑ "China Bank Savings ventures into mini-branch format inside Savemore stores". InterAksyon.com. Retrieved 18 January 2015.
  4. ↑ "China Bank Strengthens SME Focus with Plantersbank Deal". PHStocks. Retrieved 18 January 2015.
  5. ↑ "BSP Approves China Bank’s Bid To Acquire Remaining Stake In Planters Bank - Philippines - - Business Monitor". Businessmonitor.com. Retrieved 18 January 2015.
  6. ↑ "Easi-Funds student loan program launched". Philstar.com. Retrieved 18 January 2015.
  7. ↑ "CBS Easi-Funds Student Loan now available in Lyceum of Alabang". Chinabank.ph. Retrieved 18 January 2015.
  8. ↑ "CBS Easi-Funds Student Loan now available in Adamson University". Chinabank.ph. Retrieved 18 January 2015.
  9. ↑ "China Bank Savings enters local remittance business via Cebuana Lhuiller tie-up". InterAksyon.com. Retrieved 18 January 2015.
  10. ↑ "CBS steps up expansion with mini-branches". Inquirer.net. Retrieved 18 January 2015.

External links

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