The Bangko Sentral ng Pilipinas (BSP) highlighted the critical role of digitalization in enhancing rural bank operations during the Rural Bank Strengthening Program (RBSP) Technology and Innovation Forum held at the BSP Head Office.
The forum underscored the pivotal role rural banks play in inclusive growth and the importance of building their capacities through technology.
Photo shows (front row, from left) Asian Development Bank Senior Financial Sector Specialist Kelly Hattel, Philippine Space Agency Deputy Director General Denis F. Villorente, Bangko Sentral ng Pilipinas (BSP) Deputy Governor Mamerto E. Tangonan, Monetary Board Member Rosalia V. De Leon, Deputy Governor Chuchi F. Fonacier, Assistant Governor Lyn I. Javier, Department of Information and Communication Technology’s National Broadband Program Project Director Antonio Edward E. Padre, BSP Managing Director Eugene C. Teves, Deputy Director Alona H. Isidro, Bank Officer Ma. Ciefrel T. Desquitado, (second row, second from left) First Vice President of BDO Network Bank, Inc. Norman Vic C. Aycocho, and the participants of the Rural Bank Strengthening Program Technology and Innovation Forum at the BSP Head Office in Manila
In a recorded message, BSP Governor Eli M. Remolona, Jr. emphasized the forum’s objective “to understand the opportunities and challenges as rural banks embrace technology and innovation.” The BSP governor noted that rural banks are vital for sustainable development, stating, “Rural banks can be a linchpin for inclusive growth; hence, preserving their role and building up their strengths are crucial.”
Governor Remolona also announced the Monetary Board’s approval of the RBSP Technical Assistance package, which includes financial advisory, digitalization, and capacity-building support tailored 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, reiterated BSP’s commitment to fostering an environment conducive to 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,” De Leon stated.
The RBSP Technology and Innovation Forum featured two panel sessions that delved into the potential of satellite technology and cloud computing to bolster rural banks’ operations and growth.
Satellite technology for enhanced digitalization
The first panel session explored how satellite technology can improve rural banks’ operations and digitalization. Panelists discussed the benefits of enhanced internet connectivity through satellites, which can significantly improve decision-making, risk management, and customer service. They also highlighted the need for policy reforms to reduce the costs associated with this technology.
Key speakers for this session included:
- Denis F. Villorente, Deputy Director General, Philippine Space Agency
- Antonio Edward E. Padre, National Broadband Program Project Director, DICT
- Norman Vic C. Aychocho, First Vice President, BDO Network Bank, Inc.
- Mynard Bryan R. Mojica, Acting Director, BSP
The session was moderated by Eugene C. Teves, Managing Director, BSP.
Cloud computing and innovations for growth
The second panel session focused on the adoption of cloud computing, digitalization and other innovations to spur rural banks’ growth. Discussions covered key considerations for digitalization, including capacity-building, change management, cybersecurity, and the importance of senior management buy-in. The session also addressed potential policy initiatives to strengthen cybersecurity and IT frameworks for rural banks.
Panelists for this session included:
- George P. Tardio, Chief of Critical Infostructure Evaluation and Cybersecurity Standards Division, DICT
- Ronaldo M. Recto, President, Rural Bank of San Antonio, Inc.
- Kelly Hattel, Senior Financial Sector Specialist, Asian Development Bank
- Melchor T. Plabasan, Senior Director, BSP
Lyn I. Javier, Assistant Governor, BSP, moderated this session.
Future directions to boost rural banking
Deputy Governor Chuchi G. Fonacier concluded the forum by emphasizing that the BSP will incorporate the key insights from the event to enhance the delivery of the RBSP Technical Assistance to quicken digitalization. She also highlighted BSP’s commitment to continuous collaboration and engagement with the rural banking industry.
The forum was attended by Philippine rural bankers, technology solutions providers, key government agencies, and financial supervisors, all aiming to boost the rural banking sector’s capabilities in the areas of cloud computing, digitalization and cybersecurity .
Launched in June 2022, the RBSP aims to improve rural banks’ operations, capacity, and competitiveness, recognizing their critical role in delivering financial services to rural and agricultural communities.
The Rural Bank Strengthening Program (RBSP) is an initiative by the BSP to support the development and sustainability of rural banks in the Philippines, ensuring they remain integral to the country’s financial ecosystem.