Cebuana Lhuillier Bank, a rural bank, was established in 1998 as the banking arm of PJ Lhuillier, Inc., the parent company of Cebuana Lhuillier. The bank was founded to introduce the benefits of banking and foster financial inclusion among the unbanked and underserved Filipinos, who need it the most.
To better reach the Filipinos it aimed to serve, Cebuana Lhuillier Bank opened its first branch in Bacoor, Cavite, in 1998. In 2000, they opened their second branch in Nasugbu and in 2010, they opened their third branch in Calatagan, Batangas. In 2024, plans are afoot to expand in the following areas: General Santos City, Angeles City and TanjayCity.
Over a period of 25 years, Cebuana Lhuillier Bank diligently pursued its mission of financial inclusion, providing traditional yet more affordable savings and loan products to individuals and MSMEs in local communities.
Cebuana Lhuillier Bank Entices the Unbanked and Underbanked with Micro Savings
In 2018, an invigorated Cebuana Lhuillier Bank introduced a new banking product and developed a strategic roadmap to guide the bank’s endeavors going forward. In 2019, they launched Cebuana Lhuillier Micro Savings, an interest-bearing deposit product with a low initial deposit and no maintaining balance. What makes Cebuana Lhuillier Micro Savings a revolutionary banking innovation is that it is a product owned by Cebuana Lhuillier Bank and carried by Cebuana Lhuillier Pawnshop as its cash agent, allowing Cebuana Lhuillier Pawnshops to accept select transactions on behalf of the bank. In effect, Cebuana Lhuillier Micro Savings utilized almost 2,500 Cebuana Lhuillier Pawnshop branches at the time, into Cebuana Lhuillier Bank branches as well, now totalling to almost 3,500 branches. Cebuana Lhuillier Bank, a rural bank, was almost instantly thrust into the national banking landscape backed by a robust nationwide network of branches ready to offer the majority of the Filipino population the benefits of an affordable banking lifestyle that empowers their financial inclusion. At present, the popularity and strength of Cebuana Lhuillier Micro Savings Account is most noted in North Luzon, Central Visayas, Eastern Visayas, Western Visayas and Mindanao.
CL Bank Takes Operations Up a Notch with Technological Advancements
To complement Cebuana Lhuillier Micro Savings, the bank launched the eCebuana mobile app in 2020. The eCebuana app allows users to open a Cebuana Lhuillier Micro Savings account online, making affordable banking more accessible to Filipinos. The app also allows Cebuana Lhuillier Bank clients to easily access their bank account, send money within the bank, via Instapay and Pera Padala, pay bills, and top up loads.
Cebuana Lhuillier Bank also partnered with BancNet, UnionPay, Instapay, PesoNet and Visa to expand its card network and enhance online fund transfers for depositors. The company also embraced QR technology for more seamless and secured payment and funds transfer transactions and added a Teachers Loan to its roster of loan products.
Recently, Cebuana Lhuillier Bank selected Temenos to modernize its core banking platform, which gives Cebuana Lhuillier Bank flexibility and agility to manage customer accounts, manage transactions with greatly improved performance and efficiency and offer personalized products, faster and at lower cost. It means Cebuana Lhuillier Bank can now introduce affordable new lending products, such as motorcycle loans, to attract new customers while also growing sustainably. The solution will be implemented by Temenos’ delivery partner, Orion Innovation. Orion provides a suite of digital services and technology solutions that help banks modernize and transform their legacy systems and design and develop next-generation products that allow the banks to create new business opportunities.
These innovations have catapulted Cebuana Lhuillier Bank to sustain phenomenal growth. From 2018 to 2023, the bank’s deposits grew from 8 million USD to 108 million USD. Total number of Micro Savings Accounts rose to over 7.6 millionas of 2023.
Cebuana Lhuillier Bank’s Cebuana Lhuillier Micro Savings, the eCebuana mobile app, the digital technology initiatives and product innovations and the strategic partnerships with companies that enhanced and improved its services have all contributed to elevate the bank’s stature as an ordinary rural bank.
Cebuana Lhuillier Bank President Dennis Valdes states, “We operate on a scale similarly to that of a national bank due to Cebuana Lhuillier Bank’s innovative products, digital technology initiatives, strategic partnerships with biggest names in the industry and vast network/reach due to cash agency banking with almost 3,500 branches nationwide.”
The bank’s progression and over the years has not gone unnoticed by the international banking industry as it earned three consecutive wins from 2021 to 2023 as Rural/Cooperative Bank of the Year at the Asian Banking & Finance (ABF) Awards and three major wins at the World Economic Magazine Awards.
With such a phenomenal rise, it can be said that Cebuana Lhuillier Bank has gone over and beyond its mission of financially empowering the lesser served markets and is not just a rural bank. In the eyes of many, it is essentially, a national bank.
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