State-owned Development Bank of the Philippines (DBP) was recognized as SME Bank of the Year award in The Asian Banker – Philippine Country Awards for 2017 during ceremonies held on October 6, 2017 at the Fairmont Hotel in Makati City. The awards ceremony was held in conjunction with the region’s most prestigious retail banking event, the Future of Finance in the Philippines.
DBP was recognized for growing its SME business and creating value to its customers. In 2016, it expanded its SME lending business by 30% from the previous year and grew its SME accounts by a high teen rate.
Over the years, the bank has also established a significant and highly developmental SME retail portfolio through its core strategy of availability, affordability and access. Moreover, its business expansion is supported by partnerships with local government units and various cooperatives.
DBP’s Sustainable Enterprises for Economic Development (SEED) program aims to enhance financial access and empower marginalized SMEs by offering alternative ways of securing credit. It distinguishes itself through key features such as alternative collateral as a means of securing the loan; flexible repayment terms with grace period based on cash flow; and minimal equity requirement. The program has a more comprehensive reach and scope covering all industries and special segment compared to other programs in the market.
DBP is also continuously fine-tuning its technology to provide customer-centric services to SMEs. It recently launched the DBP Digital Banking Portal (DBP2), a complete suite of cash management solutions designed to provide online banking convenience to its corporate and institutional clients, including services such as real-time balance inquiries, electronic fund transfers, PDC warehousing and auto-debit arrangement.
In addition, DBP has improved its credit scoring system in partnership with the Innovations for Poverty Action to shorten the credit evaluation process of SME borrowers.
The awards programme, administered by The Asian Banker and refereed by prominent global bankers, consultants, and academics, is the most prestigious of its kind. A stringent evaluation process across three months based on a balanced and transparent scorecard determines the winners of The Asian Banker International Excellence in Retail Financial Services Awards, and the positions of various retail banks in the region.