Thrift banks gradually going digital
Thrift banks are gradually embracing digital technologies amid growing demand for anywhere-anytime-banking that has driven the industry to keep up with the shift in consumer banking behavior, an industry executive said.
Gregorio Anonas III, Chamber of Thrift Banks (CTB) president, said member banks have taken steps to adapt and sustain growth by affording clients access to banking services using the latest technology.
“We are aware of the shift in the digital behavior of our clientele. Thrift banks have embraced these new technologies and are maximizing these technologies to ensure faster, better and more affordable services,” he said.
The importance that the CTB places on technological innovations is reflected in this year’s theme for its annual convention, “Banking on Disruptive Technologies.”
The group earlier partnered with Lendr, a fully digital and multi-channel platform that allows financial institutions and credit providers to reach consumers through a single online marketplace for loans.
Data from Lendr showed eight out of its 10 borrowers are from the provinces, and about 26 percent are residing in low-income cities and municipalities – borrowers who fit the consumer profile of thrift banks across the country.
The thrift bank industry plays a key role in growing the economy, servicing micro, small and medium-scale enterprises (MSMEs) sector as well as consumer loans, the automotive and housing sectors, both in the urban areas and the countryside.
CTB is composed of 47 thrift banks nationwide with more than 2,400 branches including the so-called “branchlites” or microbanking offices that bring financial access points even to underserved or unbanked populations.
As of December 2017, the thrift bank industry serviced about 6.8 million deposit accounts and accounted for about eight percent of the total resources in the country’s banking system.
Thrift banks have also widely supported low to middleincome housing projects that drive growth outside of the capital, comprising at least 31.4 percent or P269.78 billion of the industry’s loan portfolio.
Likewise, loans to individuals for consumption purposes registered a 36.3 percent share or P311.42 billion while loans for wholesale, retail trade and repair of motor vehicles and motorcycles stood at 8.3 percent or P71.32 billion.
“By harnessing the opportunities that come with disruptive technologies, we are confident that the thrift banking industry will maintain its stability and post sustained growth in resources, lending and profitability,” convention chair Francisco Dizon said.
Bangko Sentral ng Pilipinas Governor Nestor Espenilla Jr. is the keynote speaker during the CTB’s 2018 Convention on April 10.
Topics include the National Retail Payment System (NRPS), artificial intelligence and robotics for thrift banks, blockchain for banks and cloud-based computing as well as its benefits.