THE Bangko Sentral ng Pilipinas (BSP) is helping rural banks accelerate their digital transformation by offering eligible institutions a free three-year subscription to a cloud-based core banking system (CBS).
The assistance is part of the Digitalization Technical Assistance (TA) under the BSP’s Rural Bank Strengthening Program (RBSP), which seeks to improve the operations, resilience and competitiveness of rural banks.
In a statement, BSP Gov. Eli M. Remolona Jr. said the initiative would help rural banks become stronger and better equipped to serve communities.
“Rural banks are a vital partner of the BSP in driving growth, especially in rural communities. Through this digitalization program, we aim to help rural banks become stronger, more competitive, and better equipped to serve their customers,” Remolona said.
The cloud-based CBS is expected to streamline operations, strengthen cybersecurity and operational resilience, improve customer service and help rural banks comply more effectively with BSP regulations.
The system will be provided under a Software-as-a-Service (SaaS) model and operated by an external provider. The BSP will also assist participating banks in preparing for the system’s adoption.
To qualify, rural banks must demonstrate a commitment to improving operations under the RBSP, meet applicable BSP minimum capital requirements and have no existing subscription to a SaaS-based CBS at the time of application.
The BSP issued the program guidelines on Aug. 12, 2026, covering eligibility, documentary requirements, application and evaluation procedures, and other rules.
Applications will open one month after the guidelines were issued. The BSP may also hold briefing sessions to help rural banks assess their readiness and prepare applications.
The Digitalization TA is one of three components of the broader RBSP, alongside financial advisory and capacity building. The program was approved by the Monetary Board in January 2024 to accelerate the digital transformation of rural banks and enhance their operations, capabilities and competitiveness.
The initiative is anchored on Republic Act No. 7353, or the Rural Banks Act of 1992, which authorizes the BSP to provide technical assistance to rural banks. / KOC