How rural banks in the Philippines are becoming more competitive in their markets
Rural banks in the Philippines are facing more competition in their markets. Large, commercial banks using digital financial services are extending their reach into rural communities. Many of these rural communities used to be served exclusively by rural banks.
For years, rural banks have been the access point to financial services for individuals living in hard-to-reach areas. Rural banks support their local economies with secure depositories, saving and access to loans for countless farmers, fishermen and small entrepreneurs in far-flung communities. Today, rural banks are forced to compete with commercial banks that are looking to grow their client base by acquiring more rural clients. Visionary rural banks are reacting and improving in these three ways.
1. Improving efficiency with digitisation
Rural banks are going digital to drive their operational costs and the rates they charge for their financial services down. They are aiming to offer more affordable services than offered by their competitors. Through digital transformation, rural banks are eliminating many of the time-consuming manual processes that slow their entire business down and make their operations more expensive.
2. Reducing overhead costs with cloud technology
Rural banks are also reducing the costs of their financial services with cloud-based technology. In the past, rural banks invested heavily in on-premise systems and servers to support their core banking system. Now, cloud-based core banking systems are available for rural banks. With a cloud-based systems, rural banks can eliminate some of their largest expenses: purchasing, maintaining and upgrading their hardware and software. Cloud-based core banking systems only require an Internet connection and no additional hardware.
3. Providing better service
Now that clients in rural communities have more choices available to them, visionary rural banks are distinguishing themselves from their competitors by providing additional services. Clients are beginning to demand SMS messaging services with their financial service providers, digital financial services and mobile apps to manage their personal accounts without having to travel to the bank’s branch.
4. Choosing technology providers that enable growth
The core banking system that rural banks use to run their business is a make-or-break factor in predicting how well the rural bank will fare in a changing market. The visionary rural banks that are continuing to grow in a more competitive market are using technology that is scalable, affordable and makes opening new branches easier.
Ready to take control of your Rural Bank’s future?
Oradian delivers a cloud-based core banking system for rural banks in all regions of the Philippines. It’s an all-in-one solution enabling our customers to become more efficient, dedicate more time to collecting payments and issuing new loans and serving more members. Oradian enables you to be ahead of the competition and face the future with confidence.