The Market Monitor Minding the Nation's Business
The Bangko Sentral ng Pilipinas (BSP) underscored digitalization as key to 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. explained 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 comprises financial advisory, digitalization, 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.
Likewise, Monetary Board Member (MBM) Rosalia V. De Leon, in her keynote speech, reiterated the BSP’s commitment to cultivate an enabling environment supportive of banks’ digital transformation.
“The BSP will continue to roll out programs 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 covered two panel sessions discussing the potential of satellite technology and cloud computing in boosting RBs’ operations and increasing their growth.
The first panel session focused on how satellite technology can boost rural banks’ operations. The panelists emphasized how satellite technology can support the banks’ internet connectivity and enhance their decision-making, risk management, and customer management. They also discussed policy reform areas to manage the cost of subscribing to this technology.
The resource speakers for the first panel session 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. BSP Managing Director Eugene C. Teves moderated this session.
Meanwhile, the second panel session discussed the adoption of cloud computing and other innovations to increase rural banks’ growth. The panelists deliberated the key considerations for rural banks before embarking on a digitalization journey such as capacity-building, change management, cybersecurity, and senior management buy-in. The session also discussed potential policy initiatives to enhance the cybersecurity and information technology frameworks of simple banks.
The panelists for this session are 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 of the event to drive the delivery of the RBSP Technical Assistance and intensify its efforts to collaborate and engage with the rural banking industry.
Aside from Philippine rural bankers, attendees included 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 in recognition of their critical role in providing financial products and services in rural and agricultural communities.