In the realm of Philippine banking, a transformative figure emerged in the form of Dennis Valdes, the dynamic force behind Cebuana Lhuillier Bank‘s meteoric rise to prominence.
Back in 1998, Cebuana Lhuillier Bank (CL Bank), the banking subsidiary of PJ Lhuillier, Inc., took its initial steps by inaugurating its inaugural branch in Bacoor Cavite. Fast forward to 2018, and CL Bank had evolved into a modest entity with three branches, focusing on providing conventional yet affordable savings and loan solutions to individuals and micro, small, and medium enterprises (MSMEs) in rural communities. The turning point came in June of the same year when Dennis Valdes, then the Treasury Head at Cebuana Lhuillier, assumed the role of CL Bank’s President at the young age of 40, propelling the institution into uncharted territories within the Philippine banking sector.
“Geared to foster financial wellness of the general population, CL Bank set out to overcome barriers to saving by educating, encouraging, and providing banking access to unbanked and underserved Filipinos. This mission is essentially what drives all our businesses of Cebuana Lhuillier and this includes CL Bank,” according to Jean Henri Lhuillier, President and CEO of Cebuana Lhuillier.
Valdes’ journey into banking commenced during his childhood, as he found inspiration in his father’s role as a senior bank officer. Fueling his passion further, Valdes pursued a college degree in BSC with a Major in Management of Financial Institutions, followed by a Master’s Degree in Business Administration from De La Salle University. His professional journey included stints at renowned local and foreign banking institutions such as Equitable PCI Bank, ANZ, and Unionbank. This diverse experience equipped him with a profound understanding of the multifaceted world of banking before joining Cebuana Lhuillier in 2012.
In 2019, CL Bank under Valdes’ leadership introduced the groundbreaking Cebuana Lhuillier Micro Savings. This interest-bearing deposit product required minimal documentation, an initial deposit of just PHP50, and no maintaining balance. What set it apart was its unique collaboration with Cebuana Lhuillier Pawnshop, turning nearly 2,500 pawnshop branches into CL Bank branches. This strategic partnership significantly expanded CL Bank’s physical reach, surpassing even the largest banks in the Philippines. To complement this innovation, the Bank launched the eCebuana mobile app in 2020, enabling users to open Micro Savings accounts online, making affordable banking accessible to a broader spectrum of Filipinos.
“In 2018, there were more than 70% of Filipinos who remained unbanked/underbanked. While most major banks found it commercially unviable to cater to this market, this was the segment that the Cebuana Lhuillier Group was known to serve. At that time, it was quite unheard of in the banking sector to open an account with just one ID with zero maintaining balance. There was also this misconception that the unbanked/underbanked did not have disposable income for savings because of their daily financial obligations… of course, we would prove this wrong later,” said Valdes.
Since 2020, Valdes and his dedicated team at CL Bank have continually enhanced their product offerings through digital initiatives. Collaborations with BancNet, UnionPay, Instapay, PesoNet, and Visa have expanded CL Bank’s card network and facilitated online fund transfers. Embracing QR technology and introducing the Teacher’s Salary Loan further diversified CL Bank’s suite of services. The recent selection of Temenos to modernize its core banking platform positions CL Bank for enhanced performance, efficiency, and personalized offerings.
The transformative efforts did not go unnoticed. In 2021, CL Bank received accolades from the Bangko Sentral ng Pilipinas as an outstanding stakeholder. The Asian Banking and Finance Awards consecutively honored CL Bank as the Best Rural/Cooperative Bank from 2021 to 2023. In addition, the World Economic Magazine recognized CL Bank as the Most Innovative Microfinance Bank, Fastest Growing Bank for Financial Inclusion, and Best Microfinance Bank.
Reflecting on the journey, Dennis Valdes takes pride in CL Bank’s remarkable ascent from obscurity in 2018 to a top 10 position in the country’s rural banking landscape. With Dennis at the helm, CL Bank is poised to secure its place as the undisputed leader in the Philippine banking industry, championing financial empowerment on a grand scale.