Thrift banks prepare to go hybrid, see possible double digit growth

MANILA — The Chamber of Thrift Banks will pursue hybrid banking, as it eyes to make all its members advocate digitalization enhancing its physical branches and not letting go of the traditional way of banking.

At the CTB National Convention in Makati, the association's President Mary Jane Perreras said there is no way to go for banks but to go digital. This makes processes more efficient while also capturing the younger market.

“Pag di ka pumasok sa digitalization, maiiwan ka. Why? Because our customers now are the younger ones… We need to adapt to that and we need to adjust to that type of banking kasi we are trying to invite these young people to do the banking with us,” Perreras said.

Jaime Valentin Araneta, CTB Convention Committee Co-Chairman said digitalization means creating mobile apps, improving online services and in the future, use artificial intelligence.

“We are also seeing the automation of the entire credit cycle- from loan origination, underwriting, and credit scoring to disbursement, payments, and collections. These innovations improve efficiency, reduce turnaround times,” said Araneta.

Bangko Sentral ng Pilipinas Deputy Governor Chuchi Fonacier supports the thrift banks’ initiatives. She said 73.2 percent of thrift banks have electronic payment and financial services licenses, while 48.8 percent has InstaPay, 43.9 percent has PESONet, and 24.4 percent of thrift banks are connected to the Paleng-QR Ph.

“Hybrid banking allows banks to offer both personalized service and digital solutions that address the evolving and diverse needs of customers, and to remain resilient amidst the opportunities and emerging risks,” Fonacier said.

She also mentioned that Filipinos mostly use electronic payment in their deals.

"Roughly 73.2 percent of the 41 thrift banks have electronic payment and financial services or the ePFS licenses, wherein 48.8 percent and 43.9 percent are participants of InstaPay and PESOnet, respectively," she added.

CTB now targets double digit growth this year with the push towards hybrid banking. As of April 2025, it has assets worth P1.1 trillion and gross loans surged to P823.3 billion, and deposits at P850.1 billion.