The Bangko Sentral ng Pilipinas has issued guidelines allowing rural banks to apply for funded technical assistance to move from legacy IT systems to cloud-based core banking platforms.
Memorandum No. M-2026-042, signed by BSP Governor Eli Remolona Jr. on 12 August 2026, sets out how qualified rural banks can access support under the RBSP Digitalization Technical Assistance programme.
The guidelines follow the Monetary Board’s January 2024 approval of the wider RBSP Technical Assistance.
That programme also covers financial advisory and capacity building for rural banks.
The Rural Bank Strengthening Program itself has been running since June 2022, aimed at improving the operations, capacity and competitiveness of the sector.
What the Assistance Covers
Under the programme, BSP defines a Software-as-a-Service (SaaS) core banking system as a cloud-hosted platform run by an external provider.
Banks access it over secure channels. BSP classifies this arrangement as IT outsourcing under its existing rules.
The Technical Assistance funds an eligible bank’s transition to such a system.
This covers configuration, data migration, integration, testing and training. It also covers cloud infrastructure, plus ongoing technical support and maintenance.
Banks that qualify get a maximum six-month Implementation Period to bring the new system live.
It is followed by a fixed 36-month Subscription Period, covering continued access and support once the system goes live.
Who Can Apply?
To be eligible, a rural bank must have already applied, or submitted a Letter of Intent, under one of four RBSP tracks between 21 September 2022 and 21 September 2025.
These tracks cover merger or consolidation, acquisition or third-party investment, upgrade of banking licence, or capital build-up.
The bank’s capital must also meet the minimum requirements under Circular No. 1151.
It must not already hold a subscription to a cloud-based or SaaS core banking system.
BSP said it will separately weigh each bank’s risk profile, IT readiness and outsourcing risk management framework before approving an application.
Applying for the Assistance
Applications go to BSP’s Financial Supervision Sector, which has five banking days to confirm a submission is complete and 25 banking days to evaluate it.
Approved banks then sign and notarise a TA Agreement with BSP before the central bank coordinates pre-deployment work with the bank’s chosen technology provider.
BSP will begin accepting applications one month after the guidelines take effect, with a submission deadline to be announced separately.
Featured image: Edited by Fintech News Philippines based on an image by smilephotoap via Magnific.
