The Bank of the Philippine Islands (BPI), which is owned by the Philippines’ Ayala Corporation, recently created BPI Direct BanKo, a microfinance bank intended to cater to “self-employed micro-entrepreneurs.” It is the product of the merger between two “specialized thrift banks,” BPI Direct Savings Bank and BPI Globe BanKo, which was approved by the government in December 2016 [2, 3]. As of July 2017, BPI Direct BanKo operates 24 service locations in the Philippines, and it reportedly plans to grow that number to 100 by 2018 .
BPI Direct BanKo offers fee-based advisory services and “NegosyKo loans,” which range from PHP 25,000 (USD 500) to PHP 300,000 (USD 6,000) and are “processed within a target average of three to five days” .
Established in 1851, Bank of the Philippine Islands (BPI) is a Makati-based commercial bank that operates 800 branches in the Philippines, Hong Kong and Europe . As of 2016, BPI reported total assets of PHP 1.73 trillion (USD 34.3 billion), a loan portfolio of PHP 1 trillion (USD 20.7 billion), deposits of PHP 1.4 trillion (USD 28.4 billion), return on assets of 1.4 percent and return on equity of 13.8 percent [5, 6, 7].
With a history of urban development, Ayala holds interests in the financial, telecommunications, automotive, electronics, information technology and water infrastructure sectors. Founded in 1834, it was listed on the Philippines Stock Exchange in 1976 [8, 9]. Ayala has a market capitalization of approximately PHP 2 trillion (USD 40 billion), inclusive of its subsidiaries as of 2017.
By Matthew O’Neill, Research Associate
Sources and Additional Resources:
 BPID Plans to Open 100 Branches by 2018:
 About BPI Direct BanKo:
 SEC Approves BPI Merger:
 About BPI:
 BPI Financial Performance Summary, 2016:
 Ayala Financial Report, 2016:
 MICROCAPITAL BRIEF: Ayala Corporation, Bank of the Philippine Islands (BPI), and Globe Telecom Announce a New Microfinance Bank in the Philippines:
 MICROCAPITAL BRIEF: Ant Financial, Ayala Buy Equity Stakes in Globe’s Mynt, Operator of the Philippines’ GCash, Fuse Lending:
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