The adoption of digital technology in the financial services sector offers extensive opportunities for digital banks while at the same time threatening the monopoly of traditional banks, which tend to rely on outdated systems.
The increasing competition and the disruption in the banking markets provide confidence to Gokongwei -backed GoTyme Bank to compete head-on with formidable baking institutions in the country, following its partnership with Bancnet, and one of the world's digital payment enterprises, Visa.
"We will say that we will not be multiples of traditional banks. With that being said, it's not going to be our key differentiator against digital banks. We are much more competitive than our primary competition, and that's BDO and BPI," GoTyme president and CEO Nathaniel Clarke said at the launch of the GoTyme-Visa ATM Debit Card.
He went on to say, "This might sound arrogant, but we feel we have the partnership, the product set, and the capability to become the biggest bank in the Philippines."
He said GoTyme targets to become the country's top bank as it seeks to onboard some 10 million active users in the next five years.
"The traditional banks and branch-based approach will not reach the rest of the population. So there must be a new entrant, and compared to other new entrants, they are digital only, and they are only to serve millennials and those in the cities. So, someone has to win, and with this unique model we have, we are cautiously optimistic," Clarke stressed.
Expanding in Phl
Clarke said they had chosen the Philippines to expand, partnering with the Gokongwei Group, because most of its citizens are unbanked.
"We exist to unlock the financial potentials of all Filipinos. At least 70 percent of Filipinos are unbanked, only two percent have access to affordable credit cards, while two percent can buy stocks or bonds and grow their wealth. Instead, they grow their money in a savings account, or worse, it's under their mattress. The same goes for insurance, where less than two percent of Filipinos have access to insurance which means they are very susceptible to large shocks," according to Clarke.
Just last month, the Bangko Sentral ng Pilipinas greenlighted the partnership between the Gokongwei Group and Singapore-based digital banking group Tyme to carry high-quality digital banking services in the country, with a 60-40 share of investments, respectively.
The BSP gave GoTyme Bank the certificate of authority to operate as a digital bank last 29 July.
Clarke said GoTyme bank has more than 100 member depositors, including their employees and its families. But soon, he said, once operational by October this year, the digital bank will be open to the public.
Once it goes full swing, GoTyme Bank depositors can open an account and receive a free personalized debit card in less than five minutes via digital kiosks located in Robinsons Malls and Robinsons Supermarkets.
Partnership with Visa, Bancnet
GoTyme Bank, Bancnet, and Visa formed a strategic partnership to address the need for convenient and accessible banking and digital payment solutions in the Philippines.
GoTyme Bank Co-CEO Albert Tinio said they forged the partnership as Visa's worldwide reach and expertise in digital payments, synergizing with BancNet's extensive nationwide and offshore coverage, together with GoTyme Bank and the Gokongwei brand's reputation, technology, and understanding of the Philippines market, will offer consumers high-quality banking to every Filipino, and an exciting and rewarding digital payment and money movement experience.
"This partnership launch coincided with the introduction of the GoTyme Visa ATM Debit Card, which will be free to all GoTyme Bank Account holders. This high-quality card will allow everyone to enjoy the benefits of Visa for transactions worldwide, including withdrawals from any ATM when traveling outside the country," he said.
Initially, clients who download the GoTyme app can generate a Visa-powered virtual card for free that they can use to make digital payments and other related transactions, with more exciting solutions and benefits in the pipeline.
"This easy process for onboarding will offer safer, better, and varied options for their banking and payments needs, including instant access to banking and payments platforms through the Visa debit card. The personalized cards will be issued in real-time through GoTyme Bank. These can be used for eCommerce, and the physical card can also be used for transactions here and abroad," according to Tinio.