Gotianun family-led EastWest Banking Corp. has joined the local digital banking race with the launch of Komo. It is a fully digital banking platform operating under the group’s rural banking arm. The platform has launched a digital saving deposit product carrying an interest of 3% per annum without the need for a minimum balance.
It is launched at the time when the local banking system is witnessing a dramatic surge in online banking usage when people want to perform their regular banking operations during the lockdown in various regions.
Antonio Moncupa, EastWest Chief Executive Officer, said, “Komo combines the best of two worlds: the convenience of modern digital banking backed by the security of a strong brick-and-mortar bank like EastWest.”
The pullers of Bank’s Komo project believe that EastWest would help in the acceleration of digital banking adoption in the country. The low-interest rate, zero to minimal fees, and convenient platforms can make major contributions to the effort.
“We see a digital future in banking. With Komo, our customers are sure to get the best that digital banking has to offer while being confident that their money is in good hands,” Moncupa added.
This initiative is a way to move toward digital banking transformation, keep up the innovation with customer service, and thereafter launch solutions that are reliable, seamless, and secure.
Melchor Plabasan, Director of the Central Bank’s Technology Risk and Innovation Supervision Department, told The STAR, the BSP (Bangko Sentral ng Pilipinas) is now finalizing and slated to issue the digital banking framework within the year.
“For existing supervised institutions, they are given the prerogative to adopt a digital banking business model, which they intend to do so. They just need to demonstrate that they can manage attendant risks,” Plabasan said.
He also said that the institutions with the digital-only model need to apply either as a universal, commercial, or rural bank by using the existing licensing regime.
Being established in 1994, EastWest is one of the fast-growing banks and has been among the most profitable banks of the country.