MANILA - Bangko Sentral ng Pilipinas Gov. Benjamin Diokno said Tuesday thrift banks should take advantage of the "limitless" potential of digital technology including cloud banking.
Cloud banking can expand reach and potential of small thrift banks, Diokno said at a convention hosted by the Chamber of Thrift Banks.
Diokno said using the cloud also lower operational costs.
"Thrift banks must change from brick and mortar to embracing the promise of cloud banking. Moreover, the smaller thrift banks can take advantage of this digital tech to lower operational cost. The opportunities are limitless," he said.
At least 20 financial institutions are moving to cloud banking and rural banks have already seen this as an "opportunity," the governor said.
Digital banks are subject to the same risks as normal banks and are therefore covered in the same rules and regulations, Diokno said.
So far, there are 12 thrift banks offering PesoNet and 8 thrift banks offering InstaPay while 4 others provide e-payment systems, Diokno said.
InstaPay, or the instant transfer of funds online and PesoNet, an online fund transfer system used for bigger transactions are part of the BSP's National Retail Payment System launched to push for digitalization of transactions in the country.
The BSP defines thrift banking as composed of savings and mortgage banks, private development banks, stock savings, loan associations and microfinance.
Thrift banks provide short and long-term capital for businesses in agriculture, services, industry and housing and small and medium sized enterprises (MSMEs) and individuals, the central bank said.
-- with a report from Warren de Guzman, ABS-CBN News