30 financial institutions now bank on the cloud–Diokno

BANGKO Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said more banks are moving towards “cloud-based” technology as digitalization continues to gain traction in the industry.

Diokno said about 30 financial institutions (FIs) have transitioned towards hosting their core banking solutions in the cloud as of end-March this year. However, the BSP chief didn’t name the specific banks that have made the transition.

Cloud storage is a system or model of computer data storage where key institutions stash their data on remote locations but can be accessed by the “storer” anywhere through the Internet.

“The BSP recognizes the greater efficiency of these digital platforms in the delivery of financial products and services and in expanding reach into the unserved and underserved market segments,” Diokno said.

He added that the BSP is expanding its own suite of models to “now-cast” and forecast key macroeconomic variables, including machine-learning based models. Machine learning is an approach to forecasting that uses an algorithm.

Because of the quick take up of digitalization in the financial industry, Diokno said they launched a consumer payments survey in the fourth quarter of last year.

The survey is intended to gather information on Filipinos’ awareness, ownership and usage of different payment instruments, such as cash, checking account, automated teller machines or ATMs, credit card and mobile money, among others.

“In a digital world driven by innovations, the urgent task is to keep pace with technology to be responsive to the needs of our time,” Diokno said.

“As such, the BSP fosters a supportive and innovation-friendly policy environment,” the governor added. “As an organization, the BSP shall continue to innovate with the financial sector, and shall remain a catalyst of change and an enabler of innovation.”