In the dynamic world of Philippine banking, rural and cooperative banks play a vital role in economic development by reaching the underserved and unbanked populations. However, navigating their financial landscape can be daunting, especially when evaluating their contributions based on total assets.
Therefore, this blog focuses on addressing this challenge by examining the top 10 rural and cooperative banks in the Philippines, ranked by the total value of their assets as of 2024. Readers can expect to gain insights into each of these banks, including their specialized services and impact on local economies, starting with BDO Network Bank Inc., the largest player in the field.
By the end, you will have a comprehensive understanding of how these institutions are encouraging growth and supporting communities across the nation. So, without much ado, let us dive in and take a look at the top Philippine rural and cooperative banks operating in the Philippines.
Top 10 Philippine Rural and Cooperative Banks by Total Assets - An Overview
BDO Network Bank Inc.
BDO Network Bank Inc. leads the pack as the largest rural bank in the Philippines, boasting total assets of PHP 119 billion as of September 30, 2024. This phenomenal figure underscores the bank's formidable financial health and extensive operational reach across the nation. This financial prowess is a testament to its expansive infrastructure, which includes an extensive network of 393 branches, 121 loan offices, and 431 automated teller machines, effectively catering to the banking needs of a diverse population.
The bank continues to expand aggressively with a strategic plan to open over 70 new branches by the end of 2024, which would bring its total branch count to around 560 to 570. This expansion not only amplifies their physical presence but also enhances their ability to serve more communities, thereby reinforcing their role as an essential player in the rural banking sector.
Despite a 22% dip in net income to 884.4 million pesos in 2023 from a previous 1.134 billion pesos in 2022, BDO Network Bank's parent company, BDO Unibank Inc., has shown remarkable resilience. BDO Unibank posted a 13.26% year-on-year growth in net income, amounting to PHP 21.18 billion, as recorded in the third quarter of 2023. With such impressive asset figures and strategic plans for growth, BDO Network Bank Inc. stands as a beacon of financial strength and operational excellence in the realm of Philippine rural banking.
East West Rural Bank Inc.
East West Rural Bank Inc. is a noteworthy entity in the Philippine rural and cooperative banking sector, positioned as the second-largest bank in terms of total assets. As of September 30, 2024, the bank held total assets amounting to PHP 36.5 billion. Although its asset size is almost one-third of the leading player, BDO Network Bank Inc., which boasts assets of PHP 119 billion as seen above, East West Rural Bank Inc. maintains a strong foothold in the industry.
Being part of EastWest Banking Corporation's network, East West Rural Bank Inc. aligns with a collaborative strategy aimed at enhancing financial inclusivity. This approach provides financial access to various segments, particularly those in rural areas, and supports EastWest's mission to reach all Filipinos with accessible financial solutions.
Customer-centricity forms the core of East West Rural Bank's operational philosophy. They engage in initiatives designed to address and meet customer needs effectively, reinforcing the bank's dedication to inclusivity. Through innovative financial products and streamlined services, East West Rural Bank Inc. strives to empower communities economically, contributing positively to the larger socio-economic structure.
The bank demonstrates its substantial impact within the rural banking landscape through its ongoing commitment to bridging the financial inclusion gap. East West Rural Bank Inc. illustrates how focusing on the rural banking sector can develop significant business growth while simultaneously supporting underserved communities economically.
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Card Bank Inc.
The Center for Agriculture and Rural Development, Inc., also known as Card Bank Inc., has established itself as a key player among rural banks in the Philippines, particularly through its unwavering commitment to microfinance. With total assets reaching PHP 29 billion as of September 30, 2024, the bank has carved a niche in catering specifically to small-scale entrepreneurs, socially and economically challenged women and families.
The bank's primary objective is to promote financial inclusion by providing tailored banking services for landless rural workers and underserved communities. Understanding the unique challenges faced by these groups, Card Bank Inc. offers non-collateralized loans to support viable projects that traditional banks might overlook.
Card Bank Inc. prides itself on its recognition by the Bangko Sentral ng Pilipinas, having been acknowledged as a Hall of Fame awardee for Financial Inclusion in 2013 and an Outstanding Financial Inclusion Champion in 2018. These accolades highlight the bank's dedication to providing accessible and affordable financial services for everyone, regardless of their socio-economic status.
By strategically positioning itself to address the needs of non-bankable but resourceful individuals, Card Bank Inc. has effectively utilized microfinance as a tool for social change. This focus on financial inclusion not only helps landless rural workers and small entrepreneurs achieve their dreams but also strengthens the overall economic fabric of rural communities in the Philippines.
Seabank Philippines Inc.
Seabank Philippines Inc. is a prominent rural bank playing a pivotal role in the Philippine banking sector. Seabank boasts total assets amounting to PHP 28 billion as of September 30, 2024, a testament to its robust financial foundation and capability. Initially established as The Rural Banco Laguna, Inc. on December 5, 1965, this bank has a long-standing history of commitment to enhancing the financial landscape of rural areas in the Philippines.
The significance of Seabank Philippines Inc. transcends beyond mere numbers. As a major rural bank, it has substantially contributed to the development of rural financial infrastructure. Its extensive asset base not only reflects its financial strength but also emphasizes its dedication to rural development.
By offering credit facilities for agricultural, business, and personal purposes, Seabank serves as an essential financial lifeline to many borrowers in rural regions. Moreover, its deposit products, such as regular and premium savings deposits, further encourage and enable financial inclusion among individuals who mainstream banks might underserve.
Much of Seabank's value lies in its ability to support economic activities in rural areas. By financing agricultural pursuits and various business ventures, the bank ensures that development is not confined to urban centers alone. This facilitation of development aligns with the rural bank's fundamental mission of promoting financial inclusivity and growth within rural communities.
For a deeper understanding of the context and significance of rural banks in the Philippines, explore this YouTube video. The video dives into the evolution of rural banks and their vital role in uplifting underserved communities, offering insights that enhance our appreciation of institutions like Seabank Philippines Inc.
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Guagua Rural Bank Inc.
Guagua Rural Bank Inc. stands as a prominent financial institution within Region III of the Philippines. As of September 30, 2024, the bank proudly reported total assets amounting to PHP 8.4 billion, showcasing substantial growth and financial stability.
Operating predominantly within the vibrant communities of Region III, Guagua Rural Bank Inc. offers essential banking services tailored to meet the needs of its clientele. The bank has a storied history originating in the Municipality of Guagua, and over the years, it has successfully expanded its reach to various locations within this region. Its localized approach ensures that customers receive personalized financial services, thereby fostering trust and loyalty among its clientele.
The bank influences more than just financial transactions; it acts as a catalyst for economic growth within the local community. Guagua Rural Bank Inc. actively participates in numerous community initiatives, enhancing education, promoting sustainable practices, and supporting economic development. Its endeavors underscore a commitment to corporate social responsibility, with the ultimate goal of improving the quality of life for the residents it serves.
The bank's strategic focus on community upliftment has cemented its status as a trusted and reliable financial partner, deeply embedded in the cultural and economic fabric of the region. The initiative to support education and sustainable practices underlines its role as a 'cornerstone of financial security for generations,' continually reinforcing its dedication to making a positive impact on society. This dedication not only strengthens the community but also secures the bank's longevity and success in the region.
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Cebuana Lhuillier Rural Bank Inc.
Cebuana Lhuillier Rural Bank Inc. stands out as a key player in the Philippine rural banking sector, with total assets reaching PHP 8.3 billion as of September 2024; as part of the extensive Cebuana Lhuillier financial services conglomerate, the bank not only benefits from the brand's broad network but also from its diversified scope of services.
This conglomerate includes well-known entities such as Cebuana Lhuillier Pawnshop and Cebuana Lhuillier Insurance Brokers, Inc., contributing to a robust financial ecosystem that supports rural communities.
This rural bank is particularly notable for its commitment to serving rural and underbanked populations, a mission it pursues through a carefully tailored product lineup. Among its most innovative offerings is the Micro Savings account, which is revolutionary for the rural market, with no maintaining balance requirement and accessibility through over 3,500 branches nationwide.
Such access is unprecedented in many rural areas, effectively bridging the financial gap for countless individuals. The account also facilitates cashless transactions and allows withdrawals at numerous retail stores and ATMs, making it a practical solution for daily financial needs.
Furthermore, the Cebuana Savings account is an enhanced version of the Micro Savings account, appealing to individuals looking to save larger amounts with balances exceeding PHP 50k. For those who prefer traditional banking methods, the Regular Savings Account provides a passbook-based system available at select branches, ensuring more conventional customers can still enjoy the bank's services.
Cebuana Lhuillier Rural Bank Inc. also offers a Checking Account, allowing customers to make secure payments through cheques, which is particularly beneficial for small businesses and individuals conducting frequent transactions. Additionally, the bank's Time Deposit product caters to those seeking to maximize interest in their savings, aligning with many rural savers' broader financial strategy to enhance their income through higher yields.
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Card MRI Rizal Bank Inc. - A Microfinance-Oriented Rural Bank
Card MRI Rizal Bank Inc. stands out as a significant financial institution in the Philippines, with a total asset worth PHP 7.3 billion as of September 30, 2024. Its primary mission revolves around microfinance, a crucial component in empowering rural areas economically. By implementing microfinance strategies reminiscent of those used by Card Bank Inc., this bank successfully addresses the financial needs of communities that traditional banking models often overlook.
Microfinance is more than just financial transactions; it's a lifeline for many in underprivileged areas who lack access to conventional banking services. Card MRI Rizal Bank not only provides micro and SME loans, but it also offers savings accounts and remittance services. These financial products are tailored to support individuals starting small businesses, saving for future needs, or managing remittances from overseas family members.
A noteworthy aspect of Card MRI Rizal Bank's approach is its emphasis on community and capacity-building. By organizing women into centers that hold weekly or monthly meetings, the bank creates a platform where community members can interact, learn, and make informed decisions. This not only enhances financial literacy but also encourages a culture of learning and mutual support among clients.
Furthermore, Card MRI Rizal Bank extends its impact beyond financial offerings through active participation in community development programs. The bank supports various initiatives, including education, healthcare, livelihood, disaster management, and environmental conservation.
Card MRI Rizal Bank Inc. is a prime example of how microfinance goes hand in hand with community development. By focusing on both financial services and community initiatives, the bank effectively contributes to the sustainable development of rural areas in the Philippines, demonstrating the transformative power of microfinance in rural development.
One Cooperative Bank
The One Cooperative Bank is a notable player in the Philippine banking ecosystem, with total assets amounting to just more than PHP 5 billion as of September 30, 2024. This financial institution stands out due to its cooperative model, which emphasizes the pooling of resources by its members.
Unlike traditional banks, where decision-making power is often vested in the hands of a few shareholders, One Cooperative Bank adheres to the principle of 'one person, one vote.' This egalitarian approach ensures that each member has an equal say in how the bank is managed, promoting a strong sense of community and joint ownership.
The bank is governed by a Board of Directors, elected by its members, who guide the bank in achieving its mission to address the financial needs of its varied membership base. In cooperative banks like this, any surplus generated isn't just added to the coffers; instead, it is either disbursed to members as dividends or reinvested to bolster the bank's capital foundation.
One Cooperative Bank is not just focused on individual financial gains but also emphasizes community development. It actively promotes financial literacy among its members, ensuring they understand how to effectively manage their finances. Additionally, it supports local enterprises and invests in projects that benefit the community.
Through these community-centric endeavors, One Cooperative Bank plays a crucial role in uplifting the economic status of its members and enhancing their quality of life. The cooperative banking model is a testament to how collective effort can lead to shared prosperity and community resilience, creating an environment where both personal and communal aspirations can be realized.
Also Read: Applying For SSS Business Loans in The Philippines
Agribusiness Rural Bank Inc.
Agribusiness Rural Bank Inc. stands out as a pivotal financial institution in the Philippines focused on the agricultural sector. The bank's total assets were reported at PHP 6.4 billion as of September 30, 2024, reinforcing its reliable and expansive financial foundation and capacity to meet the demands of its clientele.
Specializing in agriculture, Agribusiness Rural Bank Inc. has strategically tailored its services to support this vital industry. In addition to agriculture, the bank has broadened its horizons to include microenterprises and small to medium-sized businesses, acknowledging the diverse needs within rural areas. This diversification not only eliminates risks but also enhances financial inclusion for various economic sectors.
The bank's offerings include loans and an array of other financial services that are indispensable for agricultural progress. These services are crafted to enable development, thereby ensuring that farmers and agricultural enterprises have access to the necessary financial resources.
Agribusiness Rural Bank Inc. has been recognized with prestigious awards, such as the Most Outstanding Microfinance Availer Award by the Land Bank of the Philippines and the Most Outstanding Rural Financial Institution by the National Livelihood Development Corporation. These accolades reflect the bank's significant contributions and its role as a catalyst in empowering the agricultural community in the Philippines.
BOF Inc.
BOF Inc. stands as a pillar of financial stability for rural communities in the Philippines, with total assets reaching an impressive PHP 5.6 billion as of September 30, 2024. This homegrown rural bank has established itself as a cornerstone in Central Luzon, especially noted for its pivotal role in empowering MSMEs.
The bank's substantial asset base enables it to offer diverse financial services that are critical for the economic vitality of its clientele. By delivering tailored banking products, BOF Inc. directly supports the entrepreneurial ventures of MSMEs, both within and beyond Pampanga. This support plays a crucial role in sustaining the growth not only of these businesses but also of the community as a whole.
BOF Inc.'s approach to banking is deeply intertwined with the fabric of the rural communities it serves. Its intimate understanding of local needs—stemming from being an integral part of these communities—ensures that the financial services it provides are both excellent and relevant.
By being a part of the community, BOF Inc. can deliver services that are not just transactional but transformational, contributing to the broader development and prosperity of the regions they serve. BOF Inc.'s dedication to countryside development and financial empowerment marks it as a significant player among Philippine rural banks, and its contributions continue to enhance economic opportunities and growth across Central Luzon.
Conclusion
In conclusion, the top 10 Philippine rural and cooperative banks by total assets play a significant role in the financial landscape of the country. These banks not only provide essential banking services to rural areas but also promote economic development by supporting agricultural and small-scale business activities.
Their strong asset bases enable them to offer competitive loan products and contribute to the financial inclusion of underserved populations. The continuous growth of these banks reflects their ability to effectively cater to the needs of local businesses and individuals, providing a foundation for economic progress in rural communities.
NBFIs, such as N90, are equally pivotal in supporting Filipino entrepreneurs. Similar to rural banks, it offers crucial funding services, including quickly-approved SME loans, which are designed to help Filipino entrepreneurs establish and grow their businesses. With less strict collateral requirements compared to traditional or rural banks, N90 provides greater access to capital for those starting new ventures. Get in touch with us to take your Philippine SME to new heights.
Frequently Asked Questions (FAQs)
1. What are the largest rural banks in the Philippines?
As of September 30, 2024, BDO Network Bank Inc. is the largest rural bank in the Philippines, with total assets amounting to approximately PHP 119 billion.
Following BDO Network Bank, the other top rural banks by total assets are as follows:
- EastWest Rural Bank Inc. – PHP 36.5 billion
- CARD Bank Inc. – PHP 29 billion
- Seabank Philippines Inc. – PHP 28 billion
- Guagua Rural Bank Inc. – PHP 8.4 billion
2. How many rural cooperative banks are there in the Philippines?
As of September 30, 2022, the Philippines had 400 rural and cooperative banks operating 3,596 offices, including head offices and branches. These institutions play a crucial role in providing financial services to rural communities, promoting financial inclusion, and supporting local economic development.
3. What is the fastest-growing bank in the Philippines?
As of December 31, 2023, GoTyme Bank is recognized as the fastest-growing bank in the Philippines. Since its operational launch in November 2022, the bank has experienced remarkable growth, adding over 250,000 new customers each month and achieving a 600% year-on-year increase in monthly transactions.
By the end of 2023, GoTyme Bank's customer base had expanded to over 2 million, and it continued to grow rapidly into 2024, reaching 3.7 million customers by mid-year.
4. What is the safest bank in the Philippines?
BDO Unibank is considered one of the safest banks in the Philippines due to its strong financial standing, large asset base, and consistent performance. It is backed by its parent company, SM Investments Corporation, and is insured by the Philippine Deposit Insurance Corporation (PDIC), ensuring deposit security. Its stability is also reflected in its credit ratings from global agencies.
