As one of the Philippines’ largest and oldest universal banks, Bank of the Philippine Islands (BPI) is navigating a retail banking landscape undergoing rapid digital transformation. Mobile penetration continues to rise across the country, supported by strong remittance flows, growing adoption of digital payments and government efforts to expand financial inclusion. As competition shifts from physical distribution to digital engagement, BPI is repositioning its mobile platform from a transactional interface into a core customer engagement and operating channel. By September 2025, BPI’s mobile banking app reached 8.75 million registered users, reflecting a 15.6% year-on-year increase. A third of these new users are entirely new to the bank, onboarding digitally. This shift has reduced reliance on branch-based account opening, which Fitzgerald S. Chee, head of consumer platforms at BPI, identified as a key strategic priority. Adoption and behavioural shift: the core of BPI's strategy BPI’s mobile platform has evolved beyond its original transactional function to become the primary customer engagement channel within its hybrid service model. “We are looking at the BPI app not just as a transactional tool, but as a comprehensive platform that can address all our clients' needs, whether it’s banking, financial advice or even providing access to services they would otherwise have to visit a branch for,” Chee said. As transaction volume increases, the app is becoming the primary channel for day-to-day banking activities. This behavioural shift reflects BPI’s broader transition towards a digital-first operating model, where customer engagement, service delivery and distribution are increasingly anchored on mobile channels. Engagement trends and features reflect behavioural change User engagement continues to deepen, with financial transactions rising 22% and QR payments up 40%. Higher digital usage is reducing branch dependency and reshaping the bank’s operating model by reducing dependance on branch infrastructure. BPI has also prioritised security enhancements to strengthen customer trust and reduce barriers to adoption. Features such as Mobile Key authentication and real-time fraud alerts deliver robust protection while maintaining ease of use. Revenue implications: prioritising customer acquisition over transactional fee income BPI’s mobile strategy reflects a shift from maximising transactional fee income towards accelerating customer adoption and engagement. While gross transaction volume rose 23.4% to PHP 2.5 trillion ($43 billion), fee income generated from app transactions decreased to PHP 1.017 billion ($17 million), reflecting the bank’s decision to reduce transactional friction and encourage mobile app adoption. Chee said: “The rapid growth we’ve seen in our mobile app this year, especially in terms of transactions and new users, shows that digital banking is no longer an optional feature but a core part of how people manage their finances today.” This approach positions BPI to strengthen long-term customer relationships, expand cross-selling opportunities and improve operating efficiency over time. Operating model: integrating digital and physical services BPI’s mobile strategy is closely linked to its hybrid operating model, combining digital-first services with selective physical access points. Through its agency banking programme, customers can complete transactions at 366 partner stores across the Philippines, expanding geographic reach while reducing reliance on traditional branches. At the same time, digital features such as AI-powered personal finance tools and mobile cheque deposits enable customers to complete more services remotely, reinforcing the mobile app as the central engagement layer within BPI’s operational strategy. Forward direction: evolving BPI’s digital ecosystem Looking ahea, BPI plans to further enhance its mobile platform through expanded AI capabilities and cross-border service integration. Chee said: "We plan to enhance our mobile app by incorporating more AI-driven features and exploring opportunities in cross-border services to further integrate digital banking with physical services.” The bank also plans to expand agency banking and enhance cross-border remittance services to broaden access and strengthen customer engagement. BPI’s mobile banking strategy reflects a deliberate shift towards an engagement-driven operating model, with digital channels becoming central to customer acquisition, distribution and service delivery. By prioritising adoption and engagement over transactional monetisation, BPI is positioning its mobile platform as the foundation of its future growth as digital banking adoption accelerates across the Philippines.
