Banking sector to grow in ‘12

By Katlene O. Cacho

Monday, January 9, 2012

CEBU’s banking sector is expected to sustain its growth this year despite external risks. A former top official of the Cebu Banker’s Club (CBC) said most banks are expected to take advantage of the growing trend of online banking to improve services.

In an interview, former CBC president and first senior vice president of the Rizal Commercial Banking Corp. (RCBC) and RBG deputy group head for VisMin sales Prudencio Gesta said most bank expansion these days will be geared toward improvement of their online banking facilities.

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He, however, dismissed the idea of banks no longer putting up physical branches because of the popularity of online banking.

Electronic channels

“Banks will not reduce branching out. Part of the plan is also to improve electronic channel facilities for the convenience of depositors like automatic teller machines,” he said.

He said that despite the growing popularity of online banking due to the advancement of mobile technology, banks still opt to open physical branches especially in areas where mobile and online facilities are underutilized.

Gesta said RCBC, for instance, will open 10 more branches in the Visayas-Mindanao area this year. Three of these branches will be located in Metro Cebu.

RCBC currently has 76 branches in the VisMin area.

Positive

Gesta said the banking industry is poised to grow this year.

“The banking industry is positive on its outlook this year. Banks will sustain its growth despite the impact of the economic problems of US and Europe. We have strong macroeconomic fundamentals that we could bank on and government spending with the realization of the public-private-partnership projects will push economic activities this year,” he said.

Gesta said bank mergers and acquisitions are also expected this year.

He said, however, that manpower can be a challenge for banks this year with the industry losing workers to business process outsourcing companies.

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“We wanted to expand, but we are not getting qualified staff and officers to man our branches,” said Gesta. He said most young professionals now “keep on hopping from one job to another.”

“The employment landscape in Cebu has now changed. We now have a very competitive job market,” he said.

Gesta said they are now competing with most industries in terms of offering attractive salary, benefits and incentive packages to retain employees.

“We usually give what is required by law but banks now are willing to compete in terms of giving attractive salaries and benefits,” Gesta said.

Cebu-based job portal mynimo.com owner Wesley Chiongbian earlier reported that Cebu’s competitive job market posts a threat to small and medium-sized players in hiring qualified people.

“Cebu’s competitive job market has pushed SMEs to become incentive-driven and increase the salaries they are offering,” he said.

Published in the Sun.Star Cebu newspaper on January 10, 2012.