SM Investments Corp. plays a pivotal role in shaping the economic landscape of the Philippines through its expansive growth across various sectors. Many areas in the country still lack access to modern retailing, formal financial services and integrated property developments. By expanding nationwide, SM Investments creates new markets and improves access to these essential sectors, serving more communities.
“The Philippines’ young, dynamic, higher-earning population holds immense potential,” said Frederic DyBuncio, president and CEO of SM Investments. “Our strategy aims to foster economic growth by expanding into underserved areas, enhancing access to essential services like retail, finance and property development.”
The financial services company’s approach focuses on accelerating growth in provincial areas, which are developing faster than the national average. This expansion is bolstered by government infrastructure initiatives aimed at upgrading highways, expressways and interisland linkages through bridges. Plans to expand airports nationwide and enhance internet connectivity further support regional and urban development. These efforts, combined with economic activities and a vibrant demographic, are expected to spur significant growth across the country.
Our strategy aims to foster economic growth by expanding into underserved areas, enhancing access to essential services like retail, finance and property development.
Frederic DyBuncio, President and Chief Executive Officer of SM Investments
Fostering sustainable development
SM Investments is committed to fostering sustainable development and addressing the country’s housing backlog while promoting financial inclusion.
“Beyond Metro Manila, SM Investments sees opportunities for residential development in provincial areas,” DyBuncio said. “These initiatives not only provide much-needed housing, but also stimulate local economies by increasing foot traffic to malls, thereby boosting trade and business activities in these regions.”
Financially, the company’s banking arm, BDO Unibank, plays a pivotal role in promoting inclusion through innovative solutions. Access to banking services empowers Filipinos to build emergency funds, expand businesses and plan for retirement.
Extending financial services
The Cash Agad mobile banking initiative extends digital financial services to rural areas where traditional banking infrastructure is limited. With 9,764 Cash Agad agents nationwide in 2023, covering 100% of provinces and 92% of municipalities in the Philippines, these agents fulfill the crucial need for basic financial services in underserved markets. They not only earn additional income through convenience fees, but also boost their stores’ sales as customers often spend their withdrawn cash immediately. This cycle effectively recirculates money within the community, contributing to local economic growth.
According to the latest Bangko Sentral ng Pilipinas survey, 44% of adult Filipinos remain unbanked. To enhance financial inclusion efforts, BDO Unibank has partnered with SM Supermalls, ensuring convenient access to banking services in both urban and provincial areas. Whenever SM opens a new mall, a BDO branch is established, offering clients a seamless banking experience alongside mall amenities, even on weekends. Notably, families of overseas Filipino workers frequently visit SM malls and utilize BDO services.
BDO continues its expansion through BDO Network Bank, delivering tailored products and services to underserved communities. Aligned with the BSP’s National Strategy for Financial Inclusion, the BDO Foundation remains committed to promoting financial education. Collaborating with the BSP and other agencies, the BDO Foundation introduced a free online course on personal finance, enhancing access to high-quality financial services for Filipinos.
Recognizing the unique needs of specific groups, the BDO Foundation’s financial education program for fishers garnered international acclaim at ceremonies like the Asian Banking & Finance Retail Banking Awards and the Asia Responsible Enterprise Awards. Locally, the initiative was honored by the League of Corporate Foundations CSR Guild Awards for its impactful contributions to community empowerment through education.
Integrating digital solutions
SM Investments continues to innovate in digital solutions, enhancing the customer experience and operational efficiency in retail and financial services. DyBuncio emphasized BDO’s commitment to enabling access to financial services through its Phygital Banking strategy, integrating physical and digital channels to meet diverse client needs.
“Phygital Banking blends physical and digital interactions, allowing clients to benefit from both personal engagement and advanced technological solutions within BDO’s nationwide network of branches and offices,” DyBuncio said.
Phygital Banking blends physical and digital interactions, allowing clients to benefit from both personal engagement and advanced technological solutions within BDO’s nationwide network of branches and offices.
Recent digital transformation efforts at BDO include self-service technologies within branches, improving service delivery and client satisfaction. Innovations like QR code and biometrics-equipped ATMs for cardless cash withdrawals enhance convenience and security. Universal Teller Machines expand service capabilities with features like check deposits and biometric transactions.
Through these digital advancements, SM Investments and BDO are at the forefront of enhancing the customer experience while driving operational efficiency across their retail and financial service sectors.
Promoting good governance
SM believes in continuously partnering with its host communities to build and nourish sustainable businesses. Transparency and ethical business practices are at the heart of SM’s work culture as the company recognizes that nourishing the trust of customers and stakeholders also benefits its business objectives. SM institutionalized the corporate governance and sustainability pillars of transparency, accountability, integrity, stakeholder engagement and ethical business practices, among others, through its corporate governance-related policies and sustainability road map for collaboration with customers and stakeholders.
SM’s green initiatives
SM Investments advances environmental sustainability by generating 300 megawatts of clean energy through the Philippine Geothermal Production Co.’s geothermal sources and expanding into solar energy through Citicore Energy Real Estate Investment Corp. investments. Neo Group’s Excellence in Design for Greater Efficiencies (EDGE) zero carbon-certified commercial buildings exemplify SM’s leadership in sustainable practices.
Looking ahead, SM Investments aims to further its environmental stewardship by exploring new sources of renewable energy and introducing green product offerings, contributing positively to local communities and global sustainability efforts.
In their large role, SM Investments fills a crucial role in shaping the Philippines’ economic landscape through expansive growth, sustainable development, regional expansion, digital innovation and environmental stewardship. As the company continues to step into these roles, its commitment to fostering inclusive growth and sustainable practices remains steadfast, paving the way for nationwide progress and prosperity.
