Oradian offers cloud base tech solution to boost financial inclusion
Oradian, a Software-as-a-Service (SaaS) company serving financial institutions in remote, hard-to-reach communities globally has offered its cloud base technology solution to operators.
The firm explained that the solution is capable of helping, especially emerging economies to drive financial inclusion and become highly competitive. It stressed that the solution is already helping regulated bank to drive inclusion.Supported by the Asian Development Bank’s (ADB) strategy to boost financial inclusion in the Philippines, the firm, explained in a statement that Cantilan Bank (CANBNK) is the first financial institution regulated by the Central Bank of the Philippines (BSP) to pioneer cloud-based technology.
This milestone, according to the statement, aligns with the BSP’s digital transformation journey and enables delivery of digital financial services to unbanked individuals in remote, rural communities.The successful pilot and stakeholder collaboration serves as a model for boosting financial inclusion in Southeast Asia and Sub-Saharan Africa. Cantilan Bank has fast-tracked its digitisation and reach with the financial inclusion company Oradian, who has delivered its cloud-based core banking system and global best practices.
In July 2017, the ADB and Cantilan Bank launched the pilot project in the southern Philippines to demonstrate how cloud technology can unlock financial opportunities for the unbanked segments of the Filipino population. Oradian is the first Software-as-a-Service (SaaS) provider to deliver on ADB and BSP’s strategy.
Chief of Finance Sector Group at ADB, Lotte Schou-Zibell, said: “This pilot is a success in that we are enabling more individuals in remote and rural areas of the Philippines to access digital financial services, and because our collective efforts will result in boosting global financial inclusion.”
From her perspective, Senior Financial Sector Specialist, Southeast Asia Department of ADB, Kelly Hattel, added, “Increasing the capacity of financial service providers is a key objective of ADB’s Inclusive Finance Development Programme. We want to leverage the success of this pilot to encourage other financial institutions to look at how technology can be used to strengthen their core operations, better meet the needs of their clients through digital products and services and grow their outreach especially in rural areas to the previously unbanked throughout the Philippines.”
According to the Officer-In-Charge of Technology Risk and Innovation Supervision Department (TRISD) at the BSP, Melchor Plabasan, “As the regulator of many financial institutions and an advocate of responsible digital innovation, we recognise the opportunities that cloud-based technology can create. We recommend others in emerging markets to adopt digitisation strategies that will revolutionise financial services and deepen financial inclusion.”
In collaboration with Cantilan Bank, Oradian delivered its cloud-based core banking system, technical training and global best practice to all of Cantilan Bank’s 44 branches across 12 provinces in the rural regions of Mindanao and Visayas. With Oradian’s services, Cantilan Bank has extended its reach beyond its brick and mortar branches by offering digital financial services.
Cantilan Bank is reaping the business benefits of improved efficiency and informed decision-making with real-time data access. Oradian’s cloud-based banking system offers enhanced security and enables growth without the burden of incremental costs associated with on-premise systems. Banks moving their services into the cloud are in a better position to serve their most remote clients.
Head of Product and Co-Founder of Oradian, Julian Oehrlein, “We worked closely with Cantilan Bank to digitise their operations and processes and enable their business to run on one platform – across all branches. Regulatory reporting is simplified and more efficient with the dynamic reporting platform.
“Now that all Cantilan Bank’s processes and data are consolidated, they can focus more resources on their clients and serving their needs. One of the most important aspects of Cantilan Bank using Instafin is the improved strategic decision-making capability enabled by the data that is readily available in real-time.”
According to the World Bank, currently there are 1.7 billion individuals unbanked worldwide. Emerging markets across Asia and Africa display enormous potential yet are still deprived of the financial services that individuals in developed countries have access to. Oradian observed that many financial institutions in Africa are leapfrogging traditional systems and moving directly from custom-made services as their primary banking solutions to fully digital, cloud-based core banking systems.
“Regulated banks successfully adopting cloud technology serve as a model for emerging market financial institutions. In Nigeria, where the central bank is pushing toward a national strategy to reach 80 per cent financial inclusion by 2020, microfinance banks are looking to implement flexible cloud-based core banking systems that enable them to integrate their core business operations with delivery channels and agents,” it stated. Since its founding in 2012, Oradian has grown from a pioneer in the cloud banking space to an established service provider in emerging markets, building a community of more than 75 visionary financial institutions worldwide.
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