Cantilan Bank Inc. (CBI), which is based on Surigao del Sur, is moving its core banking infrastructure to the cloud to unlock new financial services for unbanked and underserved population in the southern Philippines.
CBI last Wednesday (26 July 2017) launched a pilot project on cloud-based core banking. The bank will also be using Oradian's core banking platform, Instafin.
The project is divided into five stages:
- Migrating CBI's data and information to the cloud;
- Developing mobile applications for loan officers;
- Integrating the bank's system with third-parties (e.g. payments and remittance services);
- Enabling digital access to finances; and
- Measuring impact on financial access.
"By moving to the cloud, we can more effectively mitigate various IT, strategic, and operational risks," said Tanya Hotchkiss, executive vice president of CBI.
The Asian Development Bank (ADB) granted CBI with US$150,000 for the project.
"Digital financial services offer new opportunities to save, make a payment, get a small business loan, send a remittance, or buy insurance. These services have the potential to serve as a pathway for the poor and underserved to leap over traditional barriers to financial inclusion," said Lotte Schou-Zibell, technical advisor for finance at ADB.
CBI is hoping that the project will serve as inspiration for future use of cloud-based core banking model in other financial institutions in the Philippines.
"The pioneering introduction of cloud banking in the Philippines is a key moment in solving the challenges of financial inclusion. Cloud technology can upgrade the competitiveness of rural banks and enable them to provide affordable, high quality financial services," said Bangko Sentral ng Pilipinas (BSP) Governor Nestor Espenilla Jr.