BSP rolls out cloud support for rural banks

The Bangko Sentral ng Pilipinas (BSP) is expanding its technical support program for rural banks, enabling qualified banks to transition from legacy IT systems to cloud-based core banking solutions. This move aims to enhance the resilience and competitiveness of rural banks as digitalization continues to transform the financial sector.

The Rural Bank Strengthening Program (RBSP) Digitalization Technical Assistance provides eligible rural banks with support for the implementation and long-term subscription to a Software-as-a-Service (SaaS) core banking system. The initiative is part of a broader RBSP technical assistance program approved by the Monetary Board in January 2024, focusing on digitalization, financial advisory, and capacity-building support.

Qualified banks will receive assistance with system configuration, data migration, integration, testing, user training, and post-deployment services, including cloud infrastructure and technical support. The assistance period lasts up to six months, followed by a 36-month subscription covering continued access to the platform and its related services.

However, not all rural banks will automatically qualify. Applicants must have submitted an application or letter of intent for certain RBSP tracks during the program's availability period from September 2022 to September 2025, such as merger or consolidation, acquisition, or third-party investment. Banks must also meet minimum capital requirements, not have an existing cloud-based subscription, and pass a self-assessment on their readiness to adopt the technology.

The BSP will evaluate applications within five banking days and conduct a 25-day review process before granting approval.