Cantilan Bank Uses Cloud-Based Banking Technology to Reach Rural Areas
Grace Mahas — November 20, 2019 — Social Good
References: cantilanbank & blogs.worldbank.org
Cantilan Bank is using cloud-based banking technology in the Philippines to make banking more accessible to remote and rural communities that otherwise have limited or no access to financial institutions. The project began in June of 2017 and is projected to be up and running by the end of 2019. The stakeholders and partners include the Asian Development Bank (ADB) who financed the project with a $150,000 grant, cloud service provider Oradian implemented the cloud-based banking system, as well as financial institute Bangko Sentral ng Pilipinas.
This cloud-based technology is referred to as a “software as a service” (SaaS) system and allows the bank to increase operational efficiency and scalability, provide a lower cost to the customer while increasing convenience. "Unlike commercial and universal banks, most rural banks are not members of financial networks," therefore; Cantilan Bank's integration of a core banking platform will allow its customers to use financial services at any ATM. In addition, the bank's clients can access their finances through mobile phones and other gadgets -- a crucial integration as even rural and remote residents in the Phillippines have mobile phones. Overall the cloud-based banking solution will allow a large percent of the "unbanked" to access a formal financial system.
Image Credit: ADB
This cloud-based technology is referred to as a “software as a service” (SaaS) system and allows the bank to increase operational efficiency and scalability, provide a lower cost to the customer while increasing convenience. "Unlike commercial and universal banks, most rural banks are not members of financial networks," therefore; Cantilan Bank's integration of a core banking platform will allow its customers to use financial services at any ATM. In addition, the bank's clients can access their finances through mobile phones and other gadgets -- a crucial integration as even rural and remote residents in the Phillippines have mobile phones. Overall the cloud-based banking solution will allow a large percent of the "unbanked" to access a formal financial system.
Image Credit: ADB
Trend Themes
1. Cloud-based Banking - Further research and development into cloud-based banking could lead to more accessible financial services for remote and rural areas.
2. Software as a Service (saas) - The development and implementation of SaaS can provide lower cost and more convenient financial services for customers in isolated areas.
3. Mobile Banking Services - The integration of mobile banking services can improve access to formal financial systems for unbanked communities, especially in remote areas.
Industry Implications
1. Banking and Financial Services - The banking and financial services industry can benefit from investing in cloud-based and mobile banking technology to reach previously unbanked communities.
2. Technology and Software - The technology and software industry can develop and provide cloud-based banking and SaaS solutions to banking and financial institutions.
3. Government and Non-profit Organizations - Government and non-profit organizations can support and fund development projects for cloud-based banking and mobile banking services to promote financial inclusion in remote and rural areas.
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