Several big banks were optimistic on the growth of Japanese small and medium enterprises (SMEs) that have relocated to the Philippines.
With the entry of Japanese bank Sumitomo Mitsui Banking Corp. (SMBC), Philippine banks with Japanese regional bank partnerships competition should not be a problem, as there should be enough of the SME businesses pie to go around.
BDO Unibank President Nestor Tan said they have partnerships with Japanese regional banks and are helping their foreign clients with their business operations in the country.
“They [SMEs] are coming here and are setting up shops, and they will always need peso services. So, that is what we’re trying to do. Our Japanese partners are referring their clients to us,” he told the BusinessMirror.
When asked about the imminent competition with Sumitomo over Japanese SMEs, Tan’s reply was: “There’s enough for everybody.”
As the country’s largest bank, BDO said it’s not in any way threatened by the competition with foreign banks already operating locally.
BDO has partnered with such regional banks as Hokuto Bank Ltd., Shonai Bank Ltd., Joyo Bank Ltd., Chiba Kogyo Bank Ltd., Juroko Bank Ltd., Awa Bank Ltd. and Daisan Bank Ltd.
Rizal Commercial Banking Corp. (RCBC) President and CEO Lorenzo V. Tan, in an earlier interview, said they made 36 new Japanese clients over an 18-month period as a result of a combination of partnerships with Resona Bank and with the Okasan Securities Group Inc.
RCBC Executive Vice President and Head of Strategic Initiatives John Deveras said RCBC’s partnership with Japanese regional banks allows RCBC to service clients of the JRBs looking to locate business operations in the Philippines.
“I am optimistic the Japanese SMEs will follow the large Japanese corporates in the Philippines. I think Sumitomo Mitsui Bank entering the Philippines will support the country’s development prospects,” Deveras told the BusinessMirror.
Metropolitan Bank and Trust Co. (Metrobank)-Tokyo Manager Takeshi Odaka Metrobank said the branch keeps receiving many requests for strategic alliances with Japanese regional banks. “We have additionally accepted 16 memoranda of understanding [MOUs] and tie-ups in 2014 alone in order to support mainly Japanese SME investments in the Philippines,” he said.
Odaka said Japanese SMEs have reported a steady increase in the number of new investments heading for the Philippines.
“Now we are literally hand in hand with 61 Japanese regional banks and two government banks in Japan to facilitate easier access to the Philippine market,” he told the BusinessMirror.
Many of the Japanese investors would want to invest in the Philippines if they could transact with their own bank, he quickly added.
Sumitomo Mitsui Banking Corp. (SMBC)’s entry to the Philippines was meant to support their SME clients’ expansions in the country.