The immediate impacts of cloud technology on Cantilan Bank’s operations
As announced on 8 February 2019 in Manila, Cantilan Bank became the Philippines’ first financial institution regulated by the Bangko Sentral ng Pilipinas (BSP) to leverage cloud technology to deliver digital financial services. This marks a milestone in financial inclusion and Cantilan Bank’s digital transformation with Oradian.
With Oradian’s cloud core banking system Instafin, digitised operations and a fully trained team across all their branches, Cantilan Bank is seeing immediate impacts of cloud technology.
Cantilan Bank has access to accurate real-time data about their operations and client base – from all branches
They start their board meetings with the Oradian dashboard on the screen. Now Cantilan is using one system, Instafin, that provides access to consolidated real-time data from all branches – at their fingertips at all times. They have an overview of their business and are use accurate data to guide their decisions. With real-time data, they know:
How many clients they have
Who their clients are and their demographics
What their portfolio looks like to a high degree of detail
How each loan is performing and how it is classified
How each of their products and services are performing
This level of access to consolidated, detailed information and ability to analyse data from across the entire business is rare among financial service providers, even among some commercial banks.
Cantilan Bank can open new branches quickly to reach individuals without access to financial services
With Instafin’s reporting functions, Cantilan Bank can run reports to see where their business is performing well. For example, they can compare how many individuals each branch is serving. Using this comparison, Cantilan Bank’s leaders know where there is strong demand and demand that is not being met.
This information directs their branch expansion plans. They know where they need to open new branches to make the biggest impact – by providing access to financial services – in the many communities in the Mindanao and Visayas regions. Cantilan Bank is building more access points to financial services, based on real-time data.
Cantilan Bank can open new branches without incremental costs. What they need to open a new branch is an Internet connection and a laptop. In the past, they would have to apply for permission, get an on-premise system setup, contact the cable provider, etc.
Cantilan Bank’s clients can use their Cantilan cards to use ATMs across the Philippines
Oradian built Instafin, its core banking system, to flexible and allow for integration with delivery channels. A delivery channel is the way financial institutions deliver their financial services to clients. Some of the alternative delivery channels – not face-to-face transactions between a teller and a client – are mobile phones, ATMs, Internet or online portals, call or contact centres, etc.
By integrating Instafin with alternative delivery channels and through our strategic partnerships, Cantilan is able to deliver its services through ATMs in the Philippines. Cantilan’s clients can access their accounts through ATMs, making financial services more convenient.
Cantilan Bank adopted global best practice for many of their processes
Most of the implementation process is not focused on setting up the system because Instafin is cloud-based. This means our customers do not need to buy hardware, install software or setup and manage their own data centres. Implementation focuses on process alignment – mapping Cantilan’s processes for their operations to match the processes built into Instafin.
Instafin is built in with global best practice. For example, Instafin’s accounting function is built with Generally Accepted Accounting Principles (GAAP). When a customer starts using Instafin, their staff is trained how to do their accounting to match GAAP, which is part of Instafin. Tapping into best practice is one of the most significant impacts of cloud technology.
How Cantilan Bank is taking advantage of the impacts of cloud technology
In July 2017, Cantilan Bank officially launched a pilot project with support from the Asian Development Bank (ADB) to move its core banking to Oradian’s cloud-based system, specially designed for financial institutions in the Philippines. The pilot project is demonstrating how digital services can unlock financial opportunities for unbanked and underserved communities in rural regions of the Philippines.