Local thrift banks embrace innovations

File photo (Photo: PTV/Facebook)

MANILA — Officials of the Chamber of Thrift Banks (CTB) are open to innovations on financial technology, citing the advantages towards further servicing their niche market.

In a statement, CTB President Gregorio B. Anonas III said thrift banking players “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.

Anonas said there is a need to accept the latest technological innovations, thus, the adoption of the theme “Banking on Disruptive Technologies” for CTB’s annual convention to be held on April 10.

TBs, he said, need to adopt to disruptive technologies such as robotics, blockhain, cloud-based computing as well as artificial intelligence (AI) to help their clients, especially those living in far-flung areas.

Recently, CTB partnered with FINTQ’s Lendr, the financial technology arm of PLDT and Smart’s Voyager Innovations, to reach more consumers through a single online market place for loans.

Lendr data showed that about eight of its 10 borrowers are based in the province and about 26 percent of them are residing in low-income cities and municipalities.

Since TBs are focused on small and medium enterprises (SMEs), Anonas said using financial technological innovations will allow them to reach more clients and entice more customers for their micro consumer loans, automotive and housing loans and the like.

To date, CTB has about 47 thrift bank-members with more than 2,400 branches nationwide.

As of end-December 2017, the industry has served about 6.8 million deposit accounts, which has a share of about eight percent of the country’s banking system, and has a loan portfolio accounting for at least 31.43 percent of the total or around PHP269.78 billion.

Francisco A. Dizon, CTB 2018 convention chair, said tapping the opportunities being provided by latest technological innovations in finance will further boost the thrift banking industry’s stability.

“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,” he added.