From ₱5 Million to ₱2.4 Trillion: The Untold Story of Metrobank’s Owner
The ₱5 Million Gamble That Changed Philippine Banking Forever
Imagine walking into a Manila bank in 1962 with ₱5 million (about $125,000 then) – enough to buy several city blocks – and declaring you’ll start a competing bank. That’s exactly what a young George Ty did when he became the owner of Metrobank at just 31 years old. Today, that ₱5 million seed has grown into a ₱2.4 trillion financial empire serving over 8 million customers. But how did this Chinese immigrant’s son outmaneuver established Spanish-Filipino banking dynasties? The answer lies in Ty’s revolutionary approach to banking in the Philippines – one that combined traditional Chinese business values with bold innovation.
What’s even more remarkable? Ty built Metrobank during Marcos-era martial law, surviving economic crises, and fierce competition from century-old banks. His story isn’t just banking history – it’s a masterclass in entrepreneurial resilience that today’s business owners can learn from. Whether you’re an aspiring entrepreneur or just curious about Philippine business giants, Ty’s journey from small-time financier to the owner of Metrobank offers priceless lessons.
Did You Know? Metrobank was the first Philippine bank to:
- Offer 24-hour ATM service (1983)
- Launch a dollar checking account (1976)
- Provide drive-through banking (1980s)
The Making of a Banking Maverick: George Ty’s Early Years
Born in 1930 to Chinese immigrant parents in Manila’s Binondo district, George S.K. Ty grew up watching his father run a small sari-sari store. This humble beginning shaped his legendary work ethic – he reportedly worked 16-hour days even after becoming a billionaire. After studying at Chiang Kai Shek College and Mapúa Institute of Technology, young George cut his teeth at his father’s trading business before spotting a gap in post-war Philippine banking.
While established banks catered to Spanish-Filipino elites, Ty saw opportunity in serving the growing Chinese-Filipino business community. His “lightbulb moment” came when he realized these entrepreneurs needed faster loan approvals and more flexible terms. This customer-first philosophy would become Metrobank’s trademark. As the owner of Metrobank, Ty often said: “We don’t just keep money – we help make money for our clients.”
Ty’s Success Principle: “Find the unmet need that big players ignore. For us, it was serving business owners who needed speed and personal relationships – not just fancy branches.”
Building the Metrobank Empire: 5 Game-Changing Strategies
When Ty became owner of Metrobank in 1962 (then called Metropolitan Bank and Trust Company), he implemented radical strategies that reshaped Philippine banking:
- The 24-Hour Approval Promise: While competitors took weeks to process loans, Metrobank guaranteed decisions within a day for qualified clients
- Bilingual Banking: First to offer full Chinese-English services, capturing the ethnic Chinese market
- Employee Ownership: Gave shares to loyal employees, creating fierce loyalty
- Weathering Storms: Survived the 1983 financial crisis by maintaining ultra-high liquidity
- Diversification: Expanded into insurance (Philippine AXA Life), automotive (Toyota Manila), and real estate (Federal Land)
These moves helped Metrobank grow from a single branch in Binondo to over 950 branches nationwide by 2023. Ty’s secret? “We moved at the speed of business, not the speed of banking,” he once told Forbes Asia.
Ty’s Leadership Playbook: Lessons for Today’s Entrepreneurs
The owner of Metrobank left behind a leadership philosophy that modern business owners can emulate:
- Hands-On Risk Management: Ty personally reviewed all major loans during Metrobank’s first 20 years
- Long-Term Vision: Invested in technology early (their first computer cost ₱12 million in 1970!)
- Cultural Bridge-Building: Blended Chinese financial discipline with Filipino relationship banking
- Prudent Expansion: Grew deposits before lending, maintaining strong capital ratios
A telling anecdote: During the 1997 Asian Financial Crisis, while other banks froze lending, Ty instructed Metrobank to increase credit to fundamentally sound businesses – earning lifelong customer loyalty. This counter-cyclical thinking helped Metrobank emerge as the Philippines’ second-largest private bank by assets.
Case Study: When Toyota entered the Philippines in 1988, Ty didn’t just finance car buyers – he became Toyota’s local partner through GT Capital. This vertical integration created multiple revenue streams.
The Ty Family Legacy: Who Runs Metrobank Today?
After George Ty’s passing in 2018 at age 86, leadership passed to his son Arthur Ty as Chairman. The current owner of Metrobank maintains the family’s 40% controlling stake through GT Capital Holdings. Under Arthur’s leadership, Metrobank has:
- Pioneered digital banking with the MBank app
- Expanded into sustainable finance (green bonds, ESG loans)
- Maintained AA credit ratings – highest among Philippine banks
Interestingly, the Ty family follows George’s “20% rule” – never letting personal ownership in any venture exceed 20% to encourage professional management. This balance between family control and corporate governance has kept Metrobank innovative across generations.
Want to learn how other Filipino tycoons built their empires? Check out our deep dives on the Ayala family’s telecom empire and Ramon Ang’s San Miguel Corporation.
Banking in the Philippines: Then vs Now (Metrobank’s Impact)
To appreciate how the owner of Metrobank transformed Philippine finance, consider these before/after snapshots:
| Era | Before Metrobank (1960s) | After Metrobank’s Influence |
|---|---|---|
| Loan Approvals | 2-4 weeks | As fast as 24 hours |
| Banking Hours | 9AM-3PM weekdays | 24/7 digital access |
| Customer Base | Primarily elite families | Mass market to multinationals |
Metrobank’s innovations forced entire industry changes. When they launched Saturday banking in 1975, competitors had to follow or lose customers. This pattern repeated with ATMs, online banking, and SME lending programs.
5 Banking Lessons Every Entrepreneur Can Learn from George Ty
Whether you’re running a bank or a bakery, these principles from the owner of Metrobank apply:
- Liquidity = Longevity: Ty kept cash reserves above regulatory requirements, allowing crisis survival
- Know Your Niche: Chinese-Filipino businesses were his beachhead before mainstream expansion
- Reward Loyalty: Metrobank’s employee stock program created industry-low turnover
- Innovate Conservatively: Adopted tech early but avoided reckless fintech bets
- Build Multiple Pillars: GT Capital’s diversified holdings provided stability
As Ty often advised young entrepreneurs: “First make your business storm-proof, then make it grow-proof.” This balanced approach explains how Metrobank weathered every Philippine economic crisis since the 1960s.
Your Turn: Apply one Ty principle this week – perhaps reviewing your cash reserves or identifying an underserved niche in your market.
Beyond Banking: The Ty Family’s Philanthropic Impact
The owner of Metrobank believed wealth carried social responsibility. The GT Foundation has:
- Built over 50 school buildings nationwide
- Funded 10,000+ college scholarships
- Donated ₱1.2 billion to pandemic response
Their philanthropy mirrors Ty’s business philosophy – targeted, sustainable, and often ahead of trends. In 2005, they established the country’s first endowed professorial chairs in risk management, anticipating the 2008 global crisis.
Like learning about socially-conscious businesses? See how Bentamo supports IT education in Mindanao.
Frequently Asked Questions
How did George Ty become the owner of Metrobank?
Ty founded Metrobank in 1962 with ₱5 million capital after recognizing underserved Chinese-Filipino entrepreneurs. His background in his father’s trading business gave him unique insights into their banking needs. Unlike established banks focused on large corporations, Ty built Metrobank by serving small-medium businesses with faster, more personalized service.
What made Metrobank different under Ty’s ownership?
Three key differentiators: 1) Unprecedented speed in loan processing, 2) Bilingual Chinese-English services, 3) Conservative risk management that ensured stability during crises. Ty also pioneered many customer conveniences we now take for granted – from ATMs to extended banking hours.
Who owns Metrobank now?
The Ty family maintains about 40% ownership through GT Capital Holdings, with Arthur Ty (George’s son) as Chairman. Public shareholders own the remainder. This structure balances family stewardship with corporate transparency – a model George Ty established early on.
How did Metrobank survive so many Philippine financial crises?
Ty’s conservative approach meant Metrobank always maintained higher-than-required capital adequacy ratios (often 15-20% vs the 10% regulatory minimum). This “safety cushion” allowed them to keep lending during crises when competitors froze up. They also avoided overexposure to any single industry.
What businesses does the Ty family own besides Metrobank?
Through GT Capital, they control significant stakes in Toyota Philippines, Philippine AXA Life Insurance, Federal Land (real estate), and Metro Pacific Investments. This diversified portfolio provides stability beyond banking.
How can I apply George Ty’s principles to my small business?
Start with these three steps: 1) Identify an underserved niche in your industry, 2) Build cash reserves equal to 3-6 months of expenses, 3) Develop one signature service differentiator (like Metrobank’s fast loan approvals). Consistency in these areas compounds over time.
Your Next Steps (Inspired by the Owner of Metrobank)
George Ty’s journey from Binondo shopkeeper’s son to billionaire banker proves that transformative success starts with seeing what others miss. As you reflect on his story, consider:
- What underserved niche exists in your industry?
- How can you build financial resilience into your business model?
- What one innovation would make customers choose you over established players?
At Bentamo, we’re inspired by visionary builders like the owner of Metrobank. Whether you’re scaling a business or managing finances, our team can help you apply these timeless principles. Reach out for a consultation on making your next strategic move.
Ready to build your legacy? Download our free “Ty-Inspired Business Checklist” to start applying these lessons today.