The Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, highlighted the importance of digitalization in enhancing rural bank operations during the Rural Bank Strengthening Program (RBSP) Technology and Innovation Forum.
BSP Governor Eli M. Remolona, Jr. said the forum aimed to address the opportunities and challenges as rural banks adopt 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,” Remolona said.
Governor Remolona also announced the Monetary Board’s approval of the RBSP Technical Assistance, which includes 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,” he added.
Monetary Board Member Rosalia V. De Leon, in her keynote speech, reaffirmed the BSP’s commitment to fostering an enabling environment for banks’ digital transformation. She said:
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.
The forum featured two panel sessions discussing the potential of satellite technology and cloud computing in boosting rural banks’ operations and growth.
The first panel focused on how satellite technology can enhance rural banks’ internet connectivity, decision-making, risk management, and customer management.
Policy reforms to manage the cost of subscribing to this technology were also discussed. Panelists included Philippine Space Agency Deputy Director General Denis F. Villorente, DICT National Broadband Program Project Director Antonio Edward E. Padre, BDO Network Bank First Vice President Norman Vic C. Aychocho, and BSP Acting Director Mynard Bryan R. Mojica, with BSP Managing Director Eugene C. Teves moderating.
The second panel discussed the adoption of cloud computing and other innovations to drive rural banks’ growth. Topics included capacity-building, change management, cybersecurity, and senior management buy-in.
The session also explored potential policy initiatives to enhance cybersecurity and IT frameworks for simpler banks. Panelists included DICT Chief of Critical Infostructure Evaluation and Cybersecurity Standards Division George P. Tardio, Rural Bank of San Antonio President Ronaldo M. Recto, ADB Senior Financial Sector Specialist Kelly Hattel, and BSP Senior Director Melchor T. Plabasan, moderated by BSP Assistant Governor Lyn I. Javier.
Deputy Governor Chuchi G. Fonacier concluded the forum, noting that the BSP will consider the key takeaways to drive the RBSP Technical Assistance and intensify collaboration with the rural banking industry.
Attendees included Philippine rural bankers, technology solutions providers, key government agencies, and financial supervisors. The RBSP, launched in June 2022, aims to enhance rural banks’ operations, capacity, and competitiveness, recognizing their critical role in providing financial services in rural and agricultural communities.
