Search
Close this search box.

We are creating some awesome events for you. Kindly bear with us.

More Digital Banks to Improve Customer Experience in the Philippines

Image Credit: pixabay.com

Covid-19 has accelerated the shift to online banking services, and even “older” people are now being required to undertake basic financial operations online, such as creating accounts, making deposits, and transferring money, among other things. Most customers will not return to in-person banking after experiencing the safety and convenience of online banking for the first time.

In this context, virtual banks or digital banks are gaining popularity since they allow consumers to bank 24 hours a day, seven days a week, from anywhere in the world. Physical bank branches will continue to play a significant role in building customers’ confidence and relationships, particularly for more complex transactions like high-value transactions, mortgages, investments, and retirement planning.

To address this, one of the Philippines’ universal banks has yet to announce when, in 2022, it will launch its digital bank, in which according to an executive, would serve as a platform for innovative customer experiences. The bank’s chief financial officer stated in a briefing that there is no set timeframe for the introduction of the latest digital bank, but that it will serve as a framework for establishing a new bank based on first principles thinking. “Meaning if you’re allowed to re-invent a bank without all the legacies involve(d), how would you do it. It’s like creating a different experience for banking.”

The bank is one of six financial organisations granted permission to operate as a digital bank by the Bangko Sentral ng Pilipinas (BSP). The BSP set a limit of seven digital bank licences to allow the regulator to closely monitor how the new banks perform and assess their influence on the sector.

The bank’s current banking licences allow it and its subsidiaries to serve even the country’s underserved population, but “our core banking system is a legacy of the bank,” he added, adding that “when you want to launch a product, your core banking system is a constraint because your products nowadays are not envisioned in the past.” Thus, he explained, the digital bank provides a new platform for them to deliver new-generation products to the customers.

OpenGov Asia reported, the emergence of digital banks, according to the Bangko Sentral ng Pilipinas (BSP), can be a game-changer in the delivery of financial products and services by traditional brick-and-mortar banks. The Philippine government has prioritised e-commerce and electronic payment methods in its efforts to increase financial and digital inclusion across the country. In a statement, the BSP governor stated that the rise of digital banks can drive existing banks’ digital transformation initiatives to stay relevant and competitive.

He also noted that as new entrants provide affordable financial services to the mass market, digital banking can promote financial inclusion, prosperity, and poverty alleviation. “In all of these, the customers and business community will reap the benefits,” the governor pointed out. Digital banks provide end-to-end financial products and services through a digital platform and or electronic channels, with no physical branch or sub-branch or branch-lite unit providing financial products and services.

The BSP is limiting the number of digital banks to closely monitor their performance and impact on the banking system, as well as their contribution to the financial inclusion agenda. The BSP governor has also stated that the BSP must ensure healthy competition among banks to encourage the development of innovative and competitive financial products and services.

The BSP chief explained that with only six neo-banks, they will be able to closely monitor the development of the digital bank market and ensure healthy competition between digital banks and existing traditional banks. Digital banks, which must have at least P1 billion in capitalisation, have little or no reliance on physical touchpoints but must set up one office in the Philippines as a central hub to receive and resolve customer complaints.

PARTNER

Qlik’s vision is a data-literate world, where everyone can use data and analytics to improve decision-making and solve their most challenging problems. A private company, Qlik offers real-time data integration and analytics solutions, powered by Qlik Cloud, to close the gaps between data, insights and action. By transforming data into Active Intelligence, businesses can drive better decisions, improve revenue and profitability, and optimize customer relationships. Qlik serves more than 38,000 active customers in over 100 countries.

PARTNER

As a Titanium Black Partner of Dell Technologies, CTC Global Singapore boasts unparalleled access to resources.

Established in 1972, we bring 52 years of experience to the table, solidifying our position as a leading IT solutions provider in Singapore. With over 300 qualified IT professionals, we are dedicated to delivering integrated solutions that empower your organization in key areas such as Automation & AI, Cyber Security, App Modernization & Data Analytics, Enterprise Cloud Infrastructure, Workplace Modernization and Professional Services.

Renowned for our consulting expertise and delivering expert IT solutions, CTC Global Singapore has become the preferred IT outsourcing partner for businesses across Singapore.

PARTNER

Planview has one mission: to build the future of connected work. Our solutions enable organizations to connect the business from ideas to impact, empowering companies to accelerate the achievement of what matters most. Planview’s full spectrum of Portfolio Management and Work Management solutions creates an organizational focus on the strategic outcomes that matter and empowers teams to deliver their best work, no matter how they work. The comprehensive Planview platform and enterprise success model enables customers to deliver innovative, competitive products, services, and customer experiences. Headquartered in Austin, Texas, with locations around the world, Planview has more than 1,300 employees supporting 4,500 customers and 2.6 million users worldwide. For more information, visit www.planview.com.

SUPPORTING ORGANISATION

SIRIM is a premier industrial research and technology organisation in Malaysia, wholly-owned by the Minister​ of Finance Incorporated. With over forty years of experience and expertise, SIRIM is mandated as the machinery for research and technology development, and the national champion of quality. SIRIM has always played a major role in the development of the country’s private sector. By tapping into our expertise and knowledge base, we focus on developing new technologies and improvements in the manufacturing, technology and services sectors. We nurture Small Medium Enterprises (SME) growth with solutions for technology penetration and upgrading, making it an ideal technology partner for SMEs.

PARTNER

HashiCorp provides infrastructure automation software for multi-cloud environments, enabling enterprises to unlock a common cloud operating model to provision, secure, connect, and run any application on any infrastructure. HashiCorp tools allow organizations to deliver applications faster by helping enterprises transition from manual processes and ITIL practices to self-service automation and DevOps practices. 

PARTNER

IBM is a leading global hybrid cloud and AI, and consulting services provider, helping clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Nearly 3,800 government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently, and securely. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and business services deliver open and flexible options to our clients. All of this is backed by IBM’s legendary commitment to trust, transparency, responsibility, inclusivity, and service. For more information, visit www.ibm.com