Cloud technology is fuelling financial inclusion in rural communities
According to the World Bank, roughly 1.7 billion individuals still lack access to basic banking services. As such, rapid technological advancement across frontier markets, such as digital and mobile technologies, has incited a host of visionary financial institutions to implement cloud-based software to help proliferate basic banking services. By moving their services into the cloud, banks would be in a stronger position to serve remote client and help solve the challenge of financial inclusion.
In July 2017, the ADB and Cantilan Bank launched its pilot project in the southern Philippines to demonstrate how cloud technology can unlock financial opportunities for the unbanked segments of the Filipino population. Oradian is the first Software-as-a-Service (SaaS) provider to deliver on ADB and BSP’s strategy, by integrating its flagship cloud-based banking platform, Instafin, into Cantilan Bank’s core banking system.
Regulated banks can drive financial inclusion by leveraging cloud-based technology, and change the lives of people living in some of the most remote, hard-to-reach communities of Southeast Asia. This form of digital transformation is only a sight of what’s to come, and the possibilities of community banking on a global scale.
“Cloud technology that meets the requirements of the BSP’s Circular 808 is enhancing the competitiveness of rural banks and enabling them to provide affordable, high quality financial services,” said BSP Governor Nestor Espenilla Jr.
According to Melchor Plabasan, Officer-In-Charge of Technology Risk and Innovation Supervision Department (TRISD) at the BSP, “As the regulator of many financial institutions and an advocate of responsible digital innovation, we recognise the opportunities that cloud-based technology can create. We recommend others in emerging markets to adopt digitisation strategies that will revolutionise financial services and deepen financial inclusion.”