The Bangko Sentral ng Pilipinas (BSP) will provide eligible rural banks with a free three-year subscription to a cloud-based core banking system as part of a program aimed at accelerating their digital transformation.
The assistance falls under the digitalization component of the BSP’s Rural Bank Strengthening Program. The system is expected to help participating banks automate and streamline operations, improve cybersecurity and operational resilience, enhance customer service, and comply with regulatory requirements.
“Rural banks are a vital partner of the BSP in driving growth, especially in rural communities. Through this digitalization program, we aim to help rural banks become stronger, more competitive, and better equipped to serve their customers,” BSP governor Eli M. Remolona Jr. said.
The core banking platform will be offered as software-as-a-service, or SaaS, and operated by an external provider. The BSP said participating banks would also receive support in preparing to adopt the system.
The program targets rural banks that have demonstrated a commitment to improving their operations under the Rural Bank Strengthening Program. Applicants must comply with the BSP’s applicable minimum capital requirements and must not have an existing subscription to a SaaS-based core banking system.
The BSP issued the program guidelines on Aug. 12, covering eligibility, documentary requirements, application and evaluation procedures, and other rules. Applications are scheduled to open one month after the guidelines were issued.
The central bank may also hold briefing sessions to help rural banks assess their readiness and prepare their applications.
The broader technical assistance program, approved by the Monetary Board in January 2024, covers digitalization, financial advisory services, and capacity building. It is anchored on Republic Act No. 7353, or the Rural Banks Act of 1992, which authorizes the BSP to provide technical assistance to rural banks.
