Rural banks and digital transformation

MANILA, Philippines — Oradian, the financial inclusion fintech company that serves the first regulated financial institution leveraging cloud-based technology in the Philippines, is now rolling out its services to many more rural banks.

Capitalizing on the innovation strategy by Bangko Sentral ng Pilipinas (BSP) for the rural banking industry, a growing number of rural banks are moving their operations to the cloud. One year after the milestone ofserving the first BSP regulated bank to pioneer cloud-based technology, Oradian is now moving a fifth rural bank to the cloud, playing a vital role in the digital transformation of rural banks in line with the BSP’s agenda.

 In February 2019, Cantilan Bank became the Philippines’ first financial institution regulated by the BSP toadopt cloud banking technology to deliver digital financial services. Cantilan Bank’s pioneering of cloud-based technology is supported by the Asian Development Bank (ADB).

The rural banks Ardci Bank, Cantilan Bank, Agribusiness, and Rural Bank of Cauayan chose Oradian as their cloud technology provider and partner in digital transformation. As pivotal actors in remote areas where commercial banks have little to no presence, these rural banks recognized that innovation and digital transformation play a major role in boosting their efficiency, reducing operational costs and enhancing the financial services they provide to their unbanked communities.

 “With a cloud-based core banking system, rural banks are now in a unique position to champion financial inclusion through reaching unbanked communities who need access to financial services in remote, hard-to- reach areas,’’ said Antonio Separovic, co-founder and CEO of Oradian.

 The BSP supports industry pioneers such as Oradian to hasten and facilitate the transition of rural banks towards digitalisation and automation.

“We at the BSP, recognize the significant role that fintech plays in driving the transformation of traditional processes in the financial system through technology-driven innovations to unlock financial inclusion barriers, ” added BSP Governor Benjamin E. Diokno.

BSP Deputy Governor Chuchi Fonacier encouraged financial institutions to become future-proof, adding, “we cannot deny the compelling advantages of moving to the cloud, that is: reduced costs,greater flexibility and scalability, increasedmobility, and faster deployment. The change – the digital landscape – is here, and now.

 “We are committed to our mission of financial inclusion in the Philippines and we are thrilled to continueserving the national rural banking industry built upon the success of the pilot project with Cantilan Bank andADB,’’ said Separovic. “We opened our Manila office in 2016 and have since grown to serve more than three million end-clients through our local partners and their over 2000 branches realizing this is only the beginning.”