In the ever-evolving banking and finance landscape, the digital revolution has emerged as a driving force, revolutionising how financial services are delivered and consumed.

With a focus on enhancing customer satisfaction, Philippine National Bank (PNB) began a strategic effort in 2022 to optimise its branch network, reducing the count from 670 to 651. This adjustment reflects the growing preference for digital services among the Filipino population.

The shift towards digitalisation has not only paved the way for greater efficiency and accessibility but has also catalysed reaching previously underserved segments of the population.

In an exclusive interview with Fintech News Philippines, Jonathan Lim Uy, Head of the PNB Strategy Division, and Damasen Paul C. Cid, First Vice President and Head of Digital Innovations Group, spoke about the bank’s customer-centric approach to digitalisation and its pursuit of building an inclusive financial ecosystem.

Putting customers at the heart of transformation

As Filipinos increasingly embraced digital platforms, PNB recognised the need to enhance its digital services to meet customer expectations.

“We see a larger trend of Filipinos using digital platforms,” noted Jonathan. This observation led the bank to invest significant effort in improving its digital offerings, primarily focusing on customer satisfaction.

The surge in digital adoption did not solely drive the decision to rationalise the branch network. Jonathan clarified that branch rationalisation resulted from a multifaceted equation aimed at maximising customer satisfaction.

The goal was to identify areas where traditional branches did not significantly contribute to customer experience and reallocate resources accordingly. “PNB is here to serve its customers and ensure their satisfaction,” Jonathan affirmed.

PNB’s thriving expansion

The pivotal moment arrived when PNB witnessed a 349 percent increase in new enrollments for its digital platforms. Building on this momentum, the bank laid out its ambitious digital initiatives for 2023, anchored on three pillars – easy, safe, and reliable.

Under the “easy” pillar, the bank plans to introduce a mobile account opening facility, simplifying the onboarding process and catering to the tech-savvy demographic. “We want to make accessibility easier for customers,” remarked Damasen.

To address evolving customer preferences, PNB’s digital platforms already provide access to critical products, such as deposits, credit cards, Unit Investment Trust Funds (UITF), and essential payments and transfers.

The bank actively supported the central bank’s initiatives on the National Retail Payment System, offering Peer-to-Peer, Person-To-Merchant, Person-to-business payments and funds transfers through QR code and account number modes.

Ensuring the safety of its customers’ transactions was another crucial aspect of PNB’s digital journey. The bank continues to improve its multi-factor authentication capabilities with initiatives to enhance fraud prevention and detection mechanisms, incorporating AI and machine learning capabilities to protect against anomalies.

In its pursuit of reliability, PNB continually improved capacity and optimised user experience, ensuring seamless and dependable digital banking services.

“Our goal is to provide reliable platforms that meet customer needs,” affirmed Jonathan.

Impact of new digital banks

Rather than viewing the entry of six new digital banks as a threat, PNB welcomed them as enablers of digital services. The presence of new players presented opportunities for growth and learning within the industry.

“The new digital banks raise the bar regarding features and delivery capabilities. We see them as catalysts for innovation,” noted Jonathan.

Introducing new players in the market brought fresh perspectives and innovative solutions to the forefront. PNB recognised the importance of collaboration and sought to learn from the practices of these newcomers.

“Collaboration and learning from each other can lead to a stronger ecosystem for the industry,” emphasised Jonathan.

The new digital banks catered to specific market segments, prompting PNB to refine its existing digital services and study the market to identify areas where it could provide unique value. This customer-oriented approach has helped PNB to adapt effectively to the evolving landscape.

Empowering underserved segments through digitalisation

Financial inclusion remained a cornerstone of PNB’s strategic vision. Strengthening outreach to underserved areas, particularly in rural regions, was a key focus for the bank.

PNB recognised that promoting financial literacy and accessibility required a multifaceted approach. “We use multiple channels, including digital platforms and in-person events, to educate and empower the unbanked population,” explained Jonathan.

In line with its commitment to financial inclusion, PNB introduced primary products with zero maintaining balance requirements, making banking more accessible to a broader demographic.

Furthermore, PNB explored collaborations and initiatives aligned with the central bank’s open finance framework, aiming to foster a more inclusive financial ecosystem.

By leveraging digitalisation, PNB sought to provide services that empowered underserved segments and offered them a pathway to economic prosperity.

Navigating the waters of Web 3.0

As emerging technologies such as blockchain and AI gained traction, Web 3.0 emerged as a prominent topic of discussion. While acknowledging the potential of these technologies, PNB said it remained focused on customer satisfaction as its primary goal.

“Our approach is customer-centric. We evaluate whether new technologies align with our customer’s needs and wants,” stated Jonathan.

Rather than pursuing technological advancements for the sake of it, PNB conducted thorough studies to identify opportunities where Web 3.0 and other emerging technologies could enhance the customer experience.

This approach ensured that any technological integration aligned with PNB’s commitment to seamless and secure banking services.

Forging ahead

The Philippine National Bank’s process of digitalisation can be observed as part of its aim to enhance customer satisfaction. The adoption of digital solutions could enable PNB to contribute to the development of a more inclusive and customer-centered banking experience.

Through strategic digital initiatives, PNB has enhanced accessibility, safety, and reliability for its customers. New digital banks have spurred innovation and collaboration within the industry, driving PNB to refine its services and cater to evolving market demands.

PNB’s digitalisation efforts will be able to reach underserved segments and provide financial growth and stability opportunities.

As the Philippine National Bank looks towards the future, embracing the digital frontier will pave the way for the nation’s more inclusive and customer-oriented banking experience.