Cantilan Bank became the Philippines’ first financial institution regulated by the Bangko Sentral ng Pilipinas (BSP) to leverage cloud technology to deliver digital financial services.
Cantilan Bank’s pioneering of cloud-based technology is supported by financial inclusion company Oradian, backed by the Asian Development Bank (ADB) and in line with BSP regulations and sandbox environment. This milestone aligns with the BSP’s digital transformation journey and enables delivery of digital financial services to unbanked individuals in remote, rural communities.
BSP Governor Nestor Espenilla Jr. said: “The pioneering introduction of cloud banking in the Philippines is a key moment in solving the challenges of financial inclusion. Cloud technology that meets the requirements of the BSP’s Circular 808 is enhancing the competitiveness of rural banks and enabling them to provide affordable, high-quality financial services.”
In July 2017, the ADB and Cantilan Bank launched the pilot project in the southern Philippines to demonstrate how cloud technology can unlock financial opportunities for the unbanked segments of the Filipino population.
“Cloud technology is revolutionizing the financial services sector in the Philippines. Digital financial services offer new opportunities to save, make a payment, get a small business loan, send a remittance, or buy insurance. These services are made possible with cloud technology and serve as a pathway for underserved communities to leap over traditional barriers to financial inclusion.” said Lotte Schou-Zibell, Chief of Finance Sector Group at ADB.
Kelly Hattel, Senior Financial Sector Specialist, Southeast Asia Department of ADB added, “Increasing the capacity of financial service providers is a key objective of ADB’s Inclusive Finance Development Program. We want to leverage the success of this pilot to encourage other financial institutions to look at how technology can be used to strengthen their core operations, better meet the needs of their clients through digital products and services and grow their outreach especially in rural areas to the previously unbanked throughout the Philippines.”
In collaboration with Cantilan Bank, Oradian delivered its cloud-based core banking system, technical training and global best practices to all of Cantilan Bank’s 44 branches across 12 provinces in the Mindanao and the Visayas regions. With Oradian’s services, Cantilan Bank has extended its reach beyond its brick and mortar branches by offering digital financial services.
According to Tanya Hotchkiss, Cantilan Bank’s Executive Vice President, “We are committed to our mission of financial inclusion in the Philippines. Cloud technology is proving to fast-track our ability to serve more unbanked individuals throughout Mindanao.”
Cantilan Bank is reaping the business benefits of improved efficiency and informed decision-making with real-time data access. Oradian’s cloud-based banking system offers enhanced security and enables growth without the burden of incremental costs associated with on-premise systems. Banks moving their services into the cloud are in a better position to serve their most remote clients.
“We worked closely with Cantilan Bank to digitise their operations and processes and enable their business to run on one platform – across all branches. Regulatory reporting is simplified and more efficient with the dynamic reporting platform," stated Julian Oehrlein, Head of Product and Co-Founder of Oradian.
Now that all Cantilan Bank’s processes and data are consolidated, they can focus more resources on their clients and serving their needs. One of the most important aspects of Cantilan Bank using Instafin is the improved strategic decision-making capability enabled by the data that is readily available in real-time," he added.
Within four years, Oradian has built a community and network of more than 45 visionary financial institutions in the Philippines who are embracing technology to reach the country’s bold financial inclusion targets and expand their client bases.
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Oradian’s cloud-based core banking system is a specially designed all-in-one platform enabling financial institutions of all sizes to manage their day-to-day operations more effectively and serve their clients more efficiently.
Cantilan Bank’s pioneering actions and successful adoption of cloud technology serves as a case study and model for financial institutions throughout Southeast Asia. This collaborative pilot project involving Cantilan Bank, one of the Philippine’s leading rural banks, the ADB, and Oradian is a substantial step toward financial inclusion in Southeast Asia. – PPD