John Richmond Go
De La Salle University
Pia Manalastas
Keep this story going! Share below!
Living up to its brand promise of “You’re in Good Hands”, Metrobank continuous to customize its services to meet the needs of its stakeholders being their trusted financial partner. It caters to all social classes and businesses with its various banking services and products while advancing the careers of Filipinos across the country by being an employer of choice.
The Metrobank Sustainability Framework on Sustainable Finance and Financial Inclusion is a framework that acknowledges the responsibility of the bank in financing businesses and organizations with a purpose of attaining the UN’s SDGs into its core business.
Sustainable Finance focuses on connecting the bank’s business strategies with community development priorities such as the UN’s SDGs with the objective of creating a positive impact that promotes wealth and sustainable growth. Therefore, the bank strategically and aggressively partners with clients and businesses who share the same objective of contributing to the UN’s SDGs.
Financial Inclusion aims to help reduce poverty through a series of business initiatives by reaching to the unbanked and underserved and by promoting financial literacy. Metrobank has equally strengthened its network by providing channels in far flung areas of the country and various nations across the world to give all Filipinos access to meaningful banking.
With its extensive network and deep-seated connection in the community, Metrobank ensures that sustainability is at the forefront when doing business. In 2021, the Institutional Banking Sector of the bank was able to raise PHP 780.2Bn or 87.25% of its commercial loans to strengthen its Sustainable Finance program. This is notably higher by 29% compared to the PHP 606.9 Bn in 2020.
Aside to that, Metrobank has incorporated Financial Inclusion into its business model aimed at reducing poverty through its various initiatives and programs. The bank considers Financial Inclusion as a key driver in addressing social and economic challenges as well as the inequalities faced within the country. This is done through the following series of programs:
1. Powered by the bank’s Branch Banking Sector, Metrobank is Reaching out to the Countryside faster and farther to provide its banking products and services to the unbanked and underserved areas of the country. Currently, the bank has established its presence in 6 out of the 7 provinces identified as the poorest provinces and 13 out of the 16 provinces in the second cluster of the poorest provinces.
2. Reaching out to Filipinos Abroad was equally improved in 2021 through the bank’s 5 foreign subsidiary offices in New York, Taipei, Tokyo, Osaka, and Seoul; 6 foreign remittance subsidiaries in the United Kingdom, Singapore, Yokohama, Hong Kong, Canada, and Hawaii; and through 142 other remittance partners across 26 countries. This allows Metrobank to respond to the financial needs and banking services that OFWs and their families require.
3. As a key economic driver in the country with a 99.5% establishment coverage and a 62.6% employment rate, Micro, Small, and Medium Enterprises (MSMEs) is considered the backbone that drives businesses in the Philippines. Reaching out to MSMEs during the pandemic was a key move by the bank with the objective of helping them survive by providing them an avenue to do business despite the series of lockdowns.
The Business Banking Center of the bank proactively onboarded MSME clients to the Metrobank Business Online Solution (MBOS) which is the bank’s innovative online banking system that provides businesses the capability to do business from home. To further promote growth post-lockdown, Metrobank has cut its fees on interbank fund transfer by half to help reduce the financial burden to both its SME clients as well as personal clients.
4. Metrobank’s Financial Education Program is a program led by the Institutional Brand Marketing which targeted individual clients to spread awareness and promote the understanding of fundamental principles on personal finance, debt management, and investments. As of 2021, the bank has two key platforms that drives this initiative which are accomplished through Moneybility and Earnest.
Moneybility is a compilation of events and practical financial tips which provides a reliable and consolidated reference for customers. The e-book contains various articles and topics on personal finance, budgeting, and debt management which are vetted by the bank’s financial experts. This is also published in the bank’s Facebook and Instagram social media accounts to capture a larger audience.
Earnest is financial education and investing platform intended for beginners which are available both on the web and mobile applications. It provides tools and platforms that users can access to know how investing works, what available investment options are open to them, various technical investing terms, and how to manage their own investments.
With the adoption of the UN’s 2030 Agenda on the Sustainable Development Goals back in 2015, Metrobank was equally determined to act and do its part with the rest of the nation. As it commits to be an Institution with a Heart, Metrobank believes that the true sense of growth, development, and success is when everyone has equal access to basic rights and needs including financial services. Ms. Ann Gregorio shared during the interview that for the bank, “This mission became more apparent during the pandemic as it further opened our eyes on how the unbanked were suffering and how our financial solutions for the country is lacking.”
Given the limited resources the country has compared to other developing nations which is further aggravated by various socioeconomic problems the community faces daily, a comprehensive yet sustainable action is needed to create a meaningful impact, especially for the unbanked and underserved.
Metrobank took this as a significant catalyst to make considerable progress in its agenda of sharpening its key focus areas in sustainable growth and development. This set into motion the establishment of the Metrobank Sustainability Framework on Sustainable Finance and Financial Inclusion which created a robust set of business initiatives and upscaling of business operations to develop relevant and sustainable wealth creation for a more inclusive society.
As mentioned by Ms. Ann Gregorio during the interview, “We can be proud of our brand promise of “You’re in Good Hands”, because we continue to provide meaningful banking to our different stakeholders while ensuring the creation of a sustainable future for our society and economic development for our country.”
Her message shows how the bank gives importance in accelerating national development by providing financial solutions that empower individuals and businesses through meaningful banking.
Of the PHP 780.2Bn in SDG-related loans, 25% was directed in funding businesses whose purpose was related to developing SDG 8 Decent Work and Economic Growth. The capital benefit was directed in stimulating trade activities; operations of holding companies and other financial intermediaries; hotels and resorts; and professional and technical services supporting the UN’s established goals to diversify, innovate and upgrade for economic productivity; promote policies to support job creation and growing enterprises; and universal access to banking, insurance, and financial services.
Another 25% was directed to fund businesses whose purpose was related to SDG 9 Industry, Innovation, and Infrastructure and focused on developing public infrastructure projects such as roads, highways, and commercial properties; support manufacturing; and operations of transportation, storage, and telecommunication activities. This aimed to support the UN’s established goals for this SDG which is to develop sustainable, resilient, and inclusive infrastructures; increase access to financial services and markets; upgrade all industries and infrastructures for sustainability; and universal access to information and communications technology.
The remaining 50% contributes to SDG 11 Sustainable Cities and Communities with a contribution of 23%, SDG 7 Affordable and Clean Energy with a contribution of 14%, SDG 2 Zero Hunger with a contribution of 11%, and the remaining 2% to 5 other SDGs.
Aside from the Metrobank’s contribution through the UN SDG-related loan disbursements, the bank was able to generate further impact when it comes to Financial Inclusion.
With these innovations and initiatives, Metrobank was able to fulfill its responsibility to its stakeholders and the community by driving business growth and demonstrating the bank’s financial strength. Accordingly, this allowed the bank to increase brand loyalty and trust as mentioned by Ms. Ann Gregorio during the interview. Furthermore, she shared that “This has allowed us to grow our economic value which furthers our capabilities to grow the business and contribute back to society.”
From the additional information that she shared, the bank was able to generate PHP 87.4 billion in economic value in 2021 where PHP 83 billion was distributed to key stakeholders. Out of the distributed value, the bank was able to improve and support its operations effectively by utilizing 35.8% which caused non-provision related expenses to go down by 1% year on year.
Metrobank was also able to generate a 60% increase on its overall Net Income compared to the previous year with a Return on Average Assets of 0.9% and Return on Average Equity of 6.9% showing the bank’s efficiency in sustainably managing its assets and capital for business operations.
Finally, the bank was able to generate PHP 2.5 trillion in total assets and PHP 1.9 in deposit liabilities through sustainable business activities and operations. Compared to the previous year, these are higher by 2% and 7%, respectively, allowing the for a stronger financial position and putting Metrobank as the second largest bank in the country.
Metrobank, through these efforts, achieves to create long-term shareholder value while creating shared value for a sustainable future. Below is the sustainability roadmap of the bank geared towards finding a balance between ensuring viability of the business and attaining its sustainable goals.
Ms. Ann Gregorio iterates this by sharing how “This roadmap aligns our business model in creating a positive impact to our community and society no matter how small it can be or no matter how small it is. As we aim for sustainability, we look at this roadmap and ensure that we can create and achieve these goals to ultimately make a difference.”
Get stories of positive business innovations from around the world delivered right to your inbox.
Ann Rozainne R. Gregorio, Head, PR and Corporate Communications
The Metropolitan Banking and Trust Company (“Metrobank”) was established in 1962 and has been serving the Filipino community for over 60 years empowered by its brand promise of “You’re in Good Hands”. It remains as a top financial institution in the Philippines that continuously provide quality and meaningful banking to every Filipino through its diverse products and services. Which is further complemented by the bank’s wide-ranging network that spans over 950+ branches, 2,300+ ATMs & CAMs locally, and 30+ foreign offices worldwide.
Metrobank does not only ensure the wealth creation of its stakeholders but to do its part in ensuring the growth and development of the community through nation building. With “An Institution with a Heart” at the heart of its mission statement, the bank ensures that it is able to give back to the community it serves and provide meaningful contributions to the overall development of the nation.