Updates: If you wish to secure a copy of Pres. Araneta’s presentation,please download the file below
The commitment to further enhance the country’s banking services in rural areas has received another boost as the Philippine Deposit Insurance Cooperation conveyed its support for the rural banking sector by helping develop a core banking software that will further reinforce the systems utilized in RBs. The development of a new system is envisioned not only as a way for RBs to remain competitive, but also bring down operating costs while continuing to strengthen their servicing capabilities.
This technological innovation was discussed between officers of RBAP and PDIC last January 30, 2011 at the PDIC HQ in Makati City. Under the Strengthening Programs for Rural Banks, the thrust to technologically improve stems from the fact that RBs play a crucial l role in enhancing financial inclusion by providing affordable loans through improved, yet cost effective services to micro-entrepreneurs and farmers in the countryside.
On of the poignant points mentioned during the get-together is the strategic position of rural banks in helping amalgamate the informal sector in the countryside into the formal financial sector. Like hitting two birds with one stone, this strategy will not only bolster the national economy, but likewise provide RBs with opportunities for growth.