February 15, 2018

Digital shift critical in PH banking

The adoption of digital tools is a make-or-break transformational journey among cooperatives and micro-finance institutions (MFIs) in the country. This was shared by Oradian General Manager Jonathan Engalla during the company’s recent strategic workshop that sought to enhance the digital adaptability of its partners amid the complex client demands and rise of digital banking.

During the two-day workshop held in Makati City, Engalla said that manual systems continue to cause huge loss in the operations of cooperatives and MFIs. Breach in security and major data adjustment due to inconsistency in information entry and generation are also some of the inconveniences that local banking encounters. These inefficiencies directly impact their ability to expand and service their clients effectively.

“Why go digital transformation for businesses under the financial sector is no longer the question, it is how urgent should they integrate these digital advancement on their operations,” said Engalla. He shared that aside from operational risks and inefficiencies, coops and MFIs also face rapid changes in clients’ lifestyles, such as increasing preference for mobile banking.

Records from Bangko Sentral show that 25% of current bank clients use mobile banking technologies in their transactions and this number is predicted to grow exponentially. “But using the digital tools for their operations will make our partners from cooperatives more efficient in managing their portfolios effectively,” Engalla said.

To help adapt to the demands of digital banking, industry experts from Cooperative Development Authority (CDA) and Oradian conducted a workshop for select representatives from cooperatives and MFIs, who were mostly in Mindanao.

The workshop included interactive discussions on the challenges and opportunities that cooperatives face nowadays, including a session on how to harness the potential of digital banking. The workshop also included a live demo of Oradian’s Instafin, a technology platform that combines key functionality (administration, security, accounting, loan portfolio management, & deposit) of banking system.

According to Enggalla, the innovation of Instafin maximizes their partners’ capabilities to drive more revenues as they are empowered to provide better services and extend their reach to more potential clients.

Engalla shared that its effort to help cooperatives and MFIs to transition to digital is primarily driven by a broader call to improve the level of financial inclusion in the country.

Just recently, Oradian partnered with Cantillan Bank, a Mindanao-based rural bank, to roll out their pioneer digitization project that makes the latter the first rural bank in the Philippines to fully integrate digital innovations in their operations. The project was supported by Asian Development Bank (ADB) and Banko Sentral ng Pilipinas (BSP).

“We at Oradian are focused to bring 10 million unbanked Filipinos to our system on board. We are looking forward to create a great impact to these unbanked communities and provide them financial services that they need,” added by Engalla.

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