BPI Expands Free Cash Deposit and Withdrawal Services to Supermarkets and Convenience Stores

MANILA, Philippines – Need to open a bank account, deposit cash, or withdraw money without paying extra fees? Bank of the Philippine Islands (BPI) wants more Filipinos to do these not just through branches or ATMs, but at the same places where they already buy groceries, medicine, gas, or other daily needs. BPI is expanding its partner-store banking services to cover account opening, cash deposits, and cash withdrawals. BPI customers can generate barcodes through the BPI app for deposits and withdrawals, then have these scanned by cashiers at participating partner stores. Cash deposits and withdrawals through these partner stores are free for customers. The Ayala-led bank now has 34 partner businesses with close to 8,000 partner locations nationwide, including supermarkets, convenience stores, pharmacies, pawnshops, and gas stations. Of this network, 1,369 partner stores already offer cash deposit and withdrawal services. “Everywhere you go, we embed ourselves into your daily lives. So banking now is not a chore anymore. It’s part of your daily life. That is the thought process behind BPI and the partner stores,” BPI agency banking head Rally Jereza said during a media roundtable. These partner stores include Robinsons Department Store, Robinsons Supermarket, Robinsons Easymart, Uncle John’s, Lawson, The Marketplace, TGP, Southstar Drug, and regional supermarket chains like Prince. “For now, I’m satisfied with the 8,000 because we want to be able to encourage people to use,” Jereza said. “But in terms of expanding it quickly with the existing BPI clients that our corporate banking has, it’s easy to expand.” Jereza said that the next goal is to have every store enabled with “branch-like capabilities” by the middle of next year. Aside from opening accounts and transacting in partner stores, BPI is also pushing its barcode withdrawal feature as a practical tool for families and even overseas Filipinos. A BPI customer can generate a barcode through the app and send it to another person, who can then cash it out at a partner store. For example, an OFW can remit once to their own BPI account, then send barcodes to relatives in the Philippines who need cash, instead of making several remittance transactions. “You’re in the US, somebody needs money, generate that barcode, send it here, they can shop. You don’t pass through remittance anymore. So it’s very, very convenient,” Jereza said. For customers, this also means they do not need to hand over a debit card or withdraw only in ATM-sized amounts. Smaller withdrawals can be done at partner stores. Must Read BPI to make InstaPay, PESONet transfers free starting July 1. Will other banks follow? Why partner stores? From BPI’s perspective, expanding through partner stores makes sense because it is cheaper than relying only on branches and ATMs. BPI officials said transactions done through partner stores cost less than those done at branches and even ATMs. Branches come with rent, staff, and other operating costs, while ATMs require maintenance and cash restocking. Partner stores, on the other hand, allow cash to circulate more naturally. One customer deposits money, another withdraws, and the cash stays in the store ecosystem instead of constantly being moved through armored cars. “Someone withdraws it from an ATM, spends it at the store, the store deposits it into the bank, and we take that money, that same cash, and put it back in the ATM,” BPI president and chief executive officer TG Limcaoco said. “Here, they spend it at the store, the store holds it, someone comes and withdraws it, so it cycles very fast.” Jereza said BPI pays partner stores a small fee for providing the service, while customers get another channel for basic transactions. This could also change what bank branches are for. Limcaoco said around half of branch transactions may be deposits and withdrawals. If more of those routine transactions move to partner stores, branches can focus more on financial education, advisory services, investments, loans, and other complex conversations. “So you decongest the branch, move the day-to-day transactions to the partner store, and your branch becomes more like a place where we can educate and raise awareness. That’s the idea,” Limcaoco said. BPI said partner-store banking has already brought in more than 1 million customers, which can be especially helpful in areas that have traditionally been underserved. For instance, a Fitmart branch in Tacurong, Sultan Kudarat, Jereza said BPI was opening around 300 accounts a day after talking to the community about saving and using accounts to receive funds such as ayuda. The bank’s ambition is to eventually bring in 10 million new accounts through agency banking. But going digital is not always easy for the people banks still need to reach. Officials said some customers struggle with weak signal, lack of mobile data, low-quality phone cameras, damaged IDs, or even fear of making a mistake on a banking app. “You can make your app so good, but the infrastructure is poor,” Limcaoco said. “That’s why agency banking is key because they help.” – Rappler.com