Cloud-Based Core Banking in the Philippines

Abstract

In June 2017, the Asian Development Bank (ADB) and Cantilan Bank Inc. (CBI) signed an agreement to conduct a pilot study on cloud-based core banking technology. The pilot was supported by the central bank of the Philippines, the Bangko Sentral ng Pilipinas (BSP), which placed the pilot in a regulatory sandbox while related regulation and processes were updated. In January 2019, CBI became the first BSP-regulated bank in the Philippines to fully rely on a cloud-based Software as a Service (SaaS) system as their core banking system. This brief focuses on success factors and lessons learned during CBI’s transition to “the cloud”. The shift will bring a more flexible and accurate banking system. Increased operational efficiency will reduce cost, increase convenience for customers, and ultimately boost financial inclusion.