37. EL BANCO ESPAÑOL FILIPINO DE ISABEL II GLITCH

EL BANCO ESPAÑOL FILIPINO DE ISABEL II GLITCH

Dr. Troy Alexander G. Miano

07 June 2017

Technology has many benefits to an individual or organization including optimizing speed and time, providing a better way to store information, enhancing the sharing of information and providing automation to tasks that otherwise require extensive human work and calculation. Technology serves as advancement in science that allows for a better solution to everyday tasks. But there are a number of times when modern technology fails us and one classic example is the Bank of the Philippine Islands (BPI) internal data processing error which happened today that had led to discrepancies in bank account balances complained by some clients.

The glitch or a sudden usually temporary malfunction or irregularity of equipment very much affected the century old bank’s ATM services. The Ayala-led BPI also apologized for the inconvenience caused by the error, vowed full resolution within the day and assured that no client would lose money over this incident. Doris Dumlao-Abadilla of the Philippine Daily Inquirer reports that social media users suspected a hacking incident behind the error but this was refuted by bank officials. BPI executive vice president Simon Paterno said in a text message: “not a hacking.” Later in the morning, BPI president Cezar Consing reiterated in a television interview that this was not a hacking incident. “Due to an internal data processing error, some clients may have seen their accounts debited twice or credited twice for a past transaction,” BPI said in its official social media advisory. “We are currently correcting the mispostings,” the bank said.

Google disclosed that BPI was originally known as El Banco Español Filipino de Isabel II established on August 1, 1851 under Spanish colonial rule. The financial institution was named after reigning Queen of Spain, Isabel II. The royal decree establishing the Banco Español-Filipino also gave it the power to print Philippine currency, the first time the Philippine peso was printed in the country; before 1851, a multitude of currencies were used, most notably the Mexican peso. They were originally called Philippine peso fuerte (PF), or "strong pesos". First printed on May 1, 1852, they were redeemable at face value for gold or silver Mexican coins. The first deposit with the bank was also done on that day by a man named Fulgencio Barrera. Three days later, a Chinese man named Tadian became the first borrowing client of the bank after the bank discounted to him a promissory note amounting to ten thousand pesos fuertes.

On September 3, 1869, following a revolution which overthrew Isabella II, the name was changed to Banco Español-Filipino. In January 1892, the bank moved from the Royal Custom House in Intramuros to the new business district of Binondo after it found out that Intramuros was becoming "economically inactive". It moved to No.4 Plaza Cervantes, which was at that time a prime property owned by the Dominican friars.

On January 1, 1912, a decision by the shareholders of Banco Español-Filipino changed the name to the present Bank of the Philippine Islands (BPI) or Banco de las Islas Filipinas in Spanish by virtue of Act No. 1790 passed on October 12, 1907. The bank was also privatized during the American colonial period.

Following World War II, BPI was actively involved in the post-war reconstruction of the Philippines. In 1949, with the establishment of the Central Bank of the Philippines (now the Bangko Sentral ng Pilipinas), BPI lost the right to issue Philippine pesos, a right it had since the Spanish colonial era and during the American colonial period.

In December 31, 1969, Ayala Corporation, which had been affiliated with BPI since its establishment in 1851, became the dominant shareholder of BPI and eventually made BPI into the flagship of Ayala's financial entities. Starting in the 1970s, BPI has been involved with many mergers and acquisitions. The first merger occurred in 1974 with BPI's acquisition of the People's Bank and Trust Company. Major notable acquisitions include Commercial Bank and Trust Company in 1981, City Trust Banking Corporation in 1996 and Far East Bank and Trust Company in 2000.

In 1982, BPI became a universal bank, and in 2000, became the Philippines' first bank assurance firm, being the first Philippine bank to offer insurance services after acquiring the insurance companies of the Ayala Corporation, the parent company of the Ayala Corporation. Within that year, BPI also founded the BPI Direct Savings Bank, an Internet bank, which launched BPI into 21st century banking. On February 14, 1986, BPI established its own interbank network, Expressnet. In October 2015, BPI launched the "Make the Best Things Happen" campaign which empowers Filipinos to make the best of their life happen by providing innovative and accessible financial solutions.

My first ATM card was with BPI and I have enjoyed the services of Expressnet since day one. My other account is with the Landbank of the Philippines (LBP) which is also under Expressnet. The glitch is one of the setbacks of today’s technology including hacking and other irregularities and scams which makes us all think and go back to the ever reliable bank passbook to contain and reflect our hard earned money.