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Financial Technology Expands Reach of Banking Services in the Philippines

Video | 9 October 2019

ADB is testing new ways of using technology in the financial sector to provide banking services.

ADB worked with the central bank of the Philippines to create special regulatory conditions for Mindanao-based Cantilan Bank, allowing it to migrate its core banking system into the cloud, meaning all its data are stored in external data centers accessed via the internet.

Cloud-based banking enables mobile banking services that could provide people with easier access to their money.

Cantilan Bank is the first cloud-based bank in the Philippines but with 9 out of 10 households in Asia and the Pacific lacking access to financial services, its experiences could be replicated both at home and overseas.

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Cantilan, Surigao del Sur, Philippines - Financial technology has the potential to bring millions of people into the formal financial system.

The Asian Development Bank is testing new ways of using technology in the financial sector to provide banking services.

ADB worked with the central bank of the Philippines to create special regulatory conditions for Mindanao-based Cantilan Bank.

This allowed Cantilan Bank to migrate its core banking system into the cloud, meaning all its data are stored in external data centers accessed via the internet.

Cloud-based banking enables mobile banking services that could provide people with easier access to their money.

We can offer a lot more services to them, like electronic fund transfer,” says Charles Hotchkiss, President, Cantilan Bank.

“People have relatives working outside and perhaps by getting the money directly to them in real-time, they can manage their finances better.”

Cantilan Bank is already piloting a mobile banking application through tablets.

“Because the gadget is good and high tech, we easily get our money,” Margilyn Cosmiano, a farmer and fish stall owner.

“We get capital for our business.”

The tablet allows customers to apply for a loan and make repayments to visiting branch officers without trekking into a bank branch.

After the payment has been entered in the system, the clients will automatically get a text message that their payment has been received, and the same with their savings,” explains John Gallega, a Cantilan Bank Account Officer.

“When they see the text message they feel comfortable knowing that their payment has already been registered.”

Giving customers time to focus on their businesses and families.

“Because of Cantilan Bank, I have been able to set up the businesses that I had planned, and I have been able to send my children to school,” says Margilyn Cosmiano, a farmer and fish stall owner.

Shifting all its operations into the cloud, has made Cantilan Bank’s operations more efficient and cost-effective.

“I can mitigate the liquidity risks of the bank and I can make immediate decisions in real-time,” says Sheryl Asio, Funds Management Division Head, Cantilan Bank.

This provides more time to focus on customer needs.

Cantilan Bank is the first cloud-based bank in the Philippines but with 9 out of 10 households in Asia and the Pacific lacking access to financial services, its experiences could be replicated both at home and overseas.