The Bangko Sentral ng Pilipinas (BSP) emphasised digital transformation as essential for enhancing rural bank operations during the Rural Bank Strengthening Program (RBSP) Technology and Innovation Forum held at the BSP Head Office in Manila on 31 May 2024.
In a recorded message, BSP Governor Eli M. Remolona, Jr. highlighted that the forum aimed “to understand the opportunities and challenges as rural banks embrace technology and innovation.”
“Rural banks can be a linchpin for inclusive growth hence, preserving their role and building up their strengths are crucial for sustainable development,”
said Governor Remolona.
He also announced the Monetary Board’s approval of the RBSP Technical Assistance, which includes financial advisory, digitalisation, and capacity-building for the rural banking sector.
“The RBSP commits to assembling a system of support responding to the special circumstances of rural banks,”
according to the BSP Governor.
Monetary Board Member (MBM) Rosalia V. De Leon, in her keynote speech, reiterated the BSP’s commitment to cultivating an environment supportive of rural bank digital transformation.
“The BSP will continue to roll out programmes such as the RBSP Technical Assistance and various prudential reliefs and institute key regulatory initiatives geared towards driving digital transformation in the financial industry, all while managing risks attached to these initiatives,”
MBM De Leon stated.
The RBSP technology forum included two panel sessions discussing the potential of satellite technology and cloud computing in boosting rural banks’ operations and growth.
The first panel session focused on how satellite technology can enhance rural banks’ operations by supporting internet connectivity and improving decision-making, risk management, and customer management. The panelists also discussed policy reforms to manage the costs of this technology.
The resource speakers for the first panel session, moderated by BSP Managing Director Eugene C. Teves, included Philippine Space Agency Deputy Director General Denis F. Villorente, Department of Information and Communications Technology (DICT) National Broadband Program Project Director Antonio Edward E. Padre, BDO Network Bank, Inc. First Vice President Norman Vic C. Aychocho, and BSP Acting Director Mynard Bryan R. Mojica.
The second panel session explored the adoption of cloud computing and other innovations to increase rural banks’ growth. Panelists discussed key considerations for rural banks before embarking on digitalisation, such as capacity-building, change management, cybersecurity, and senior management buy-in. They also discussed potential policy initiatives to enhance the cybersecurity and information technology frameworks of rural banks.
The panelists for this session were DICT Chief of Critical Infostructure Evaluation and Cybersecurity Standards Division George P. Tardio, Rural Bank of San Antonio, Inc. President Ronaldo M. Recto, Asian Development Bank Senior Financial Sector Specialist Kelly Hattel, and BSP Senior Director Melchor T. Plabasan. BSP Assistant Governor Lyn I. Javier served as moderator.
To close the forum, Deputy Governor Chuchi G. Fonacier shared that the BSP will consider the key takeaways from the event to drive the delivery of the RBSP Technical Assistance and intensify its efforts to collaborate and engage with the rural banking industry. Attendees included Philippine rural bankers, technology solutions providers, key government agencies, and financial supervisors.
Launched in June 2022, the RBSP aims to enhance the rural banks’ operations, capacity, and competitiveness, recognising their critical role in providing financial products and services in rural and agricultural communities.
Featured image credit: Edited from Freepik
