Later that evening, Michael and Bridget met for dinner at one of their favorite restaurants in Manila. It was a small, intimate place where they could enjoy a quiet meal together, away from the hustle and bustle of their busy lives. Bridget, as always, was keen to know what Michael had been working on.
"So, how was your day?" Bridget asked, sipping her wine as she looked across the table at Michael.
Michael smiled, appreciating her interest. "Busy, as usual. We're making good progress on the new banking enterprise."
Bridget's eyes lit up with curiosity. "Reyes Bank, right? I've been meaning to ask you more about it. Starting a bank sounds like a huge undertaking. What's the minimum budget for something like that?"
Michael leaned back in his chair, thinking for a moment before responding. "It varies depending on the scale and the services you want to offer. For a digital-only bank like the one we're planning, we're looking at an initial capital requirement of around ₱1 billion. This covers everything from regulatory compliance, and technology infrastructure, to the initial marketing push.
Traditional banks, with their physical branches, typically require much more."
Bridget nodded thoughtfully. "And what about the regulatory side? I imagine getting approval to start a bank isn't easy."
Michael smiled, impressed by her insight. "You're absolutely right. The Bangko Sentral ng Pilipinas (BSP) has strict guidelines for new banks. We've already submitted our preliminary application, and so far, the feedback has been positive.
But we still have a lot of work to do in terms of providing detailed financial projections, risk management plans, and ensuring our technology meets their security standards."
Bridget took another sip of her wine, clearly fascinated by the process. "It sounds like a lot of upfront work. What made you decide to get into banking?"
Michael shrugged slightly, his expression turning serious. "I just think starting a banking company would be a cool thing to do. Like..." Michael paused, carefully choosing his words as he continued. "I've always been drawn to industries where I see the potential for innovation and impact. Banking is one of those areas.
"Michael Reyes," Hector began, his voice measured but heavy with concern. "He's not just another entrepreneur. Everything he touches turns to gold, and now he's decided to get into our industry."
Around the table, the other executives exchanged uneasy glances. They all knew what this could mean. Reyes Corporation wasn't just a tech company; it was a juggernaut that had redefined every sector it had entered. From healthcare to energy, Michael Reyes had a knack for shaking up established industries and coming out on top.
"What do we know about Reyes Bank so far?" Hector asked, turning to the head of strategy.
The strategist, a sharp woman named Carla, adjusted her glasses and quickly summarized what they had learned, about their digital-only platform.
"And what about their resources? How much are they pouring into this?"
Carla continued, "Initial capital is estimated to be around ₱1 billion, but with Reyes Corporation's backing, they have virtually unlimited resources at their disposal. They've already started working on partnerships with fintech companies and telecoms to enhance their offerings and ensure rapid scalability."
A murmur of concern rippled through the room. BDO had long enjoyed its position as the leading bank in the country, but this was a direct threat to its dominance. Reyes Bank's focus on technology and accessibility was something they couldn't afford to ignore.
Hector steepled his fingers, deep in thought. "We need to respond, and fast. Reyes Bank may be starting small, but they have the potential to grow rapidly. We can't let them outmaneuver us."
"Should we consider acquiring or partnering with them? Maybe we could turn this into an opportunity rather than a threat."
Hector shook his head. "Michael Reyes isn't the type to sell or partner easily, especially not when he has a vision. He's likely looking to disrupt the market, and I doubt he'll compromise on that. No, we need to strengthen our own digital offerings, improve our customer service, and perhaps lower some of our fees.
We have to remind our customers why they've trusted us for so long, and why they should continue to do so."