GoTyme Bank anticipates its deposits will surpass P20 billion by the end of the year, driven by the introduction of new loan products and an expansion of its kiosk network. This projection comes from Nathaniel D. Clarke, the President and Chief Executive Officer of the Gokongwei-led digital bank.
“We’ll end up with over P20 billion this year,” Clarke confidently told reporters last week. This optimistic forecast follows a significant milestone, with the bank having already amassed P17.3 billion in deposits. The bank’s customer base has reached 3.7 million, reflecting a steady increase in monthly transactions.
One of the key strategies behind this growth is the planned introduction of a QR code-based credit card early next year. “We will not be launching a physical credit card yet,” Clarke explained, noting the complexity and the current 3% interest rate cap on credit cards. The digital credit card aims to offer convenience and accessibility, aligning with the bank’s tech-savvy approach.
GoTyme Bank’s loan products have also shown promising results. The bank’s partnership with PayMongo, an early wage access provider, led to the launch of a pilot loan product last year. According to Clarke, this initiative has performed “above expectations,” with manageable credit losses. The successful pilot phase is set to conclude soon, enabling the bank to approve more loans to merchants and incorporate larger partner merchants this semester.
In a significant move to broaden its lending capabilities, GoTyme Bank acquired SAVii, formerly known as Uploan, in May. SAVii specializes in financial technology salary lending and boasts a loan book exceeding P3 billion. “The bigger growth from a lending perspective in the next year will come through our shareholders’ acquisition of SAVii,” Clarke remarked. The collaboration aims to expand salary lending and enhance payroll account offerings, leveraging SAVii’s network of 150 corporate clients and over half a million employees.
The bank is also on the cusp of rolling out cryptocurrency and equity investment features on its app, pending regulatory approval. “We have both local and international partners for crypto and shares,” Clarke said. “We’ve already developed the product and are just waiting for regulatory approval, so I can’t give a timeline because it’s out of our hands now. It’s ready to go.”
In addition to these digital advancements, GoTyme Bank plans to increase its physical presence by adding 100 more kiosks by year’s end. “It’s an expansion outside of supermarket and retail,” noted Co-CEO and Chief Commercial Officer Albert Raymund O. Tinio. The bank has observed significant traction in office buildings, particularly those housing business process outsourcing (BPO) workers. This expansion strategy is expected to attract new customers from large office complexes.
The digital bank’s growth is further supported by strategic partnerships. Last year, GoTyme Bank partnered with Accenture and more recently with Concentrix. Clarke hinted at another forthcoming BPO partnership, signaling continuous efforts to strengthen its market presence and customer base.
As GoTyme Bank forges ahead with its ambitious plans, it remains focused on leveraging technology and strategic collaborations to drive growth. The anticipated P20 billion in deposits by year-end marks a significant milestone, underscoring the bank’s commitment to innovation and customer-centric solutions in the competitive digital banking landscape.