Cantilan Bank pioneers cloud-based core banking software in Philippines
Cantilan Bank is set to become “the first bank in the Philippines to use cloud-based core banking technology in its operations”.
The project is being carried out under the auspices of the Asian Development Bank (ADB) – with a $150,000 grant provided to Cantilan Bank by ADB.
The technology and infrastructure supplier is Oradian. The bank will implement its Instafin core banking system, which will be delivered in the cloud.
Oradian is a Software-as-a-Service (SaaS) provider based in Croatia. It focuses on the microfinance, cooperative and rural banking sectors, and operates in the Philippines, Nigeria and South Africa.
Cantilan Bank states that this “pilot project aims to demonstrate that an investment and focus on technology – like cloud-based banking – can increase financial inclusion and provide a useful example to be scaled and replicated”.
Tanya Hotchkiss, Cantilan Bank’s EVP, adds that by moving to the cloud, the bank “can more effectively mitigate various IT, strategic, and operational risks” and also achieve a “significant reduction” in its future IT capital expenses.
The project will consist of five stages:
- the full migration of Cantilan Bank’s data and information to the cloud infrastructure;
- mobility enhancement of loan officers in the field through mobile applications linked to the core system;
- integration with third parties including payments and remittance services;
- enabling clients to have direct digital access of their finances;
- measuring impact on financial access.
The venture has also received support from the country’s central bank, Bangko Sentral ng Pilipinas (BSP).
“The pioneering introduction of cloud banking in the Philippines is a key moment in solving the challenges of financial inclusion,” states BSP’s governor, Nestor Espenilla Jr.
“Cloud technology can upgrade the competitiveness of rural banks and enable them to provide affordable, high quality financial services.”
Cantilan Bank is a community bank founded in 1980. It has 42 branches and 24 ATMs.