One Network Bank

One Network Bank Inc. (ONB), now operating as BDO Network Bank, stands as a significant player in the Philippine rural banking sector, with a strategic focus on fostering financial inclusion across the nation's underserved communities.

The bank's origins trace back to the consolidation of three Mindanao-based rural banks: the Rural Bank of Panabo, Network Rural Bank (owned by the Consunji family), and Provident Rural Bank of Cotabato. This merger was officially approved by the Monetary Board in December 2003, and the consolidated entity, One Network Bank, commenced operations on April 1, 2004. The driving force behind this union was Alex V. Buenaventura, the then-president of the Rural Bank of Panabo, who brought his extensive rural banking experience to lead the newly formed institution. His leadership was pivotal in establishing a unified system that leveraged the strengths of the three banks to create the largest rural bank in the Philippines.

ONB’s business model centers on providing accessible financial products to provincial areas, particularly targeting the unbanked and underbanked populations in Mindanao and the Visayas. The bank's services are tailored for micro, small, and medium enterprises (MSMEs), as well as individual consumers in communities often overlooked by larger commercial banks. Revenue streams are generated from a portfolio of loan products, including teacher salary loans which have a favorable net interest margin, alongside deposit-taking, cash management, remittance, and bill payment services. A key aspect of its operational strategy involves field officers who visit local markets and businesses directly, facilitating deposits and providing financial support without requiring clients to leave their workplaces.

The bank offers a range of specific products, such as starter savings accounts with low initial deposit requirements, non-collateral loans for small business owners, and micro-insurance products. To enhance accessibility, ONB was the first rural bank permitted by the Philippine Clearing House Corporation to clear its own checks directly and became an early member of the MegaLink interbank network (now part of BancNet), expanding its ATM services. In July 2015, BDO Unibank, the Philippines' largest bank, completed its acquisition of ONB in a share-swap deal valued at approximately P6.7 billion, aiming to leverage ONB's extensive regional presence. Following the acquisition, ONB was rebranded to BDO Network Bank in 2019 to align with its parent company's brand, while continuing its mission to serve community-level clients with financial solutions like deposit pick-up services and tailored business loans.

Keywords: rural banking, financial inclusion, microfinance, SME lending, community banking, Mindanao banking, Visayas banking, BDO Network Bank, Alex V. Buenaventura, MSME loans, agricultural loans, deposit services, remittance services, bill payments, micro-insurance, provincial banking, Philippine banking, emerging markets finance, branch banking, financial accessibility