A big universal bank like Bank of the Philippine Islands literally underwent a stress test early this month after a widespread glitch in its computer system fanned wild rumors that the bank suffered illiquidity or was about to go bankrupt.
Many BPI clients, fearing the worst, expressed their apprehensions in social media on June 6 when they failed to do their regular transaction with the bank. Some social media users thought of switching their funds to other banks following the internal system error experienced by BPI.
But many clients stuck with the bank, confident enough that the country’s third largest lender would weather the storm.
Danilo del Castillo Domingo, a long-standing BPI client, called his branch the morning of June 7, inquiring about the issue spreading over the news and on social media.
His branch manager assured him, “It’s an internal system error, and BPI is already correcting the double posting.”
Domingo visited his branch on June 9, remarking about how the incident has been widely covered and checking on the branch staff.
“There’s nothing to worry about. Everything is fixed already. I’m giving you my assurance that BPI is still strong and stable,” the manager told him.
“I trust BPI. [The incident] will not be the reason for my family and I to leave BPI. I’ll stay with BPI, even if we have accounts in other banks, this is the bank that I trust with most of my funds,” Domingo replied.
It may take a lot of convincing before clients like Domingo change their banks. His relationship with BPI already spans decades, starting with BPI Family Bank in Novaliches, Quezon City before he was married. He is confident about the bank’s capabilities. “It is a big company with vast capitalization.”
“The BPI staff in my branch know me, especially now that I transact with them often,” he says. “I’ve been with them for a long time, and even if branch managers change, I would be endorsed to the succeeding branch manager. BPI is like family to me.”
“I never believed that the incident was as big as it was made to be. It was just one glitch, and BPI is bigger than that,” he adds.
Exaggerated news
Another BPI client since 1998 visited his branch on June 7, asking for statements for his two passbook accounts. While being assisted for his transaction, another client seated next to him noted: “What’s happening with BPI is scary. I’m considering getting my money.”
The other client quickly defended the bank: “It’s not BPI’s fault. It was just a system error, and BPI will quickly fix it.” The exchange prompted one BPI personnel to explain what really happened.
Another BPI client, who has been with the bank since 2002, visited her BPI branch on June 8 and inquired about the situation. When the matter was explained to her, she noted, “The reports are exaggerated. BPI has been there for a long time. Don’t tell me that issue can’t be fixed.”
This BPI client also understands that no money was lost during the incident. “In the BPI system error, there was no money involved. Other people are easily swayed, but we are sticking with BPI.”
A client of the BPI Rockwell branch noted that her relationship manager went to great lengths to ensure clients’ needs are addressed.
“The RM took my call as early as 7:30 a.m. and provided the official advisories, which we circulated internally,” the client wrote. “This flow of information minimized worries and further panic among [our] employees. What amazed me was then when I visited the branch that morning to make an over-the-counter withdrawal for my boss, I was surprised to see the RM herself at the door of the Rockwell branch, assisting bank clients.”
Not hacked
Incoming Bangko Sentral ng Pilipinas Governor Nestor Espenilla found no evidence the system was hacked.
BSP’s head of financial consumer protection Pia Roman-Tayag also said in a radio interview “no one really lost money” as BPI assured, because it was a human error that simply resulted in the wrong posting of April 27 to May 2 transactions, which the system read instead of the June 6 transactions.
The misreading affected the debit and credit accounts of clients. With the correction, the wrong postings and charges were immediately reversed, at hardly any cost to the clients.
“And amounts in the accounts remained intact, no transactions were made and money didn’t move,” Pia Roman-Tayag said.
For all those glitches and cyberbullying, BPI endured the stress test with a well preserved capital.
E-mail: rayenano@yahoo.com or business@manilastandard.net or extrastory2000@gmail.com