The role of technology in banking has never been more critical, especially as financial institutions navigate an evolving landscape defined by rising customer expectations, regulatory challenges, and increasing competition. Producers Savings Bank (Producers Bank), a significant player in the Philippine banking sector, has been at the forefront of embracing technology to meet these challenges head-on.
Producers Savings Bank, formerly known as Producers Rural Banking Corporation, is a thrift bank in the Philippines. It was founded in 1995 and is based in Pasig City. The bank is steadfast in its vision "to become the top partner for farmers and entrepreneurs in building greater wealth for the nation," consistently introducing innovative banking services to meet the evolving needs of the times. The bank operates with a network of 279 branches, making it easier for its customer base to access banking services. The bank has successfully embraced new technologies to support its business goals, mergers & acquisitions, and manage the future growth of the bank.
In this article, Pab Ronald Calanoc, Senior AVP and Information Security Officer at Producers Bank, shares valuable insights into how the bank has successfully adapted to the dynamic requirements of today's financial environment.
Key Challenges Faced by Producers Bank
Like many financial institutions, Producers Savings Bank operates in an increasingly complex environment.
"Reaching the unbanked isn't just a goal; it's a responsibility. Our strategy combines tech solutions with on-ground knowledge, allowing us to bridge gaps in financial services even in the most underserved areas," says Pab Ronald, emphasizing the bank's commitment to financial inclusion.
Pab Ronald outlined five primary challenges that they have faced over the years:
These challenges are not unique to Producers Savings Bank, but they illustrate the complex environment in which many banks operate today. Overcoming these obstacles requires an approach to invest in both technology and people.
Commenting on the bank's approach, Pab Ronald said, "In a market as dynamic as the Philippines, we can't afford to simply keep up -- we have to stay ahead. Our approach is about balancing agility with responsibility, particularly in areas like cybersecurity and compliance where there's zero tolerance for error."
Investing in People and the Right Technology
To overcome the above challenges, Producers Savings Bank has implemented a proactive IT resource and infrastructure planning process. This involves collaboration with business units to align capacity and capability with business goals. In his 23 years with the bank, Pab Ronald Calanoc, has witnessed remarkable growth -- from a single unit rural bank to a robust savings bank with 279 branches. This transformation was made possible by embracing new technologies and ensuring that security and compliance are at the forefront of all deployments.
"Our technology is only as good as our people," Calanoc noted. "Investing in people isn't a checkbox for us -- it's our strongest asset. By fostering a culture of continuous learning, we ensure our team is not just reacting to change but driving it. This is how we keep our technology and security standards truly resilient."
For this reason, Producers Bank places a strong emphasis on upskilling its staff and fostering a culture of continuous learning. This lean but technically rich team is empowered to adapt to change, embrace innovation, and continually improve their skills. Tools like the Finacle Knowledge Center further support the team by providing access to vital resources and technical know-how, allowing them to stay updated on Finacle-related technologies and banking solutions.
Strategic Choices in Technology
According to Pab Ronald, "There is no one size, fits all approach in implementing and managing technology."
When it comes to technology deployment, Producers Savings Bank has adopted a hybrid model, using a combination of "best of breed" and "bank in a box" solutions.
The "best of breed" approach allows for customization and scalability, enabling the bank to tailor solutions to its specific needs. This flexibility gives Producers Savings Bank access to a wide range of innovative solutions from various vendors, driving technological advancement and enhancing operational efficiency.
On the other hand, a "bank in a box" solution offers simplicity and cost-effectiveness, providing a pre-integrated suite of solutions that covers core banking, digital banking, and other functionalities. This approach allows for quicker implementation and reduced integration costs, which can be particularly beneficial for smaller banks looking to accelerate their digital transformation.
"The evolution of Producer Savings Bank has been about more than just technology; it's about purpose. For us, bridging financial inclusion with innovation is the guiding principle behind every strategic decision we make."
In 2021, Producers Bank achieved a Net Income of PhP501.808 million, marking a 43.83% increase from the prior year, driven by an expanded loan portfolio that reached a larger base of borrowers. To support its ambitions for growth, resilience, and customer-centricity, the bank recognized the need for a future-ready, next-generation core technology.
For Producers Savings Bank, a combination of both strategies, supported by Infosys through its Finacle Core Banking Solution, provides the ideal balance. This hybrid model allows the bank to benefit from tailored solutions while ensuring that implementations are manageable and cost-effective.
The Road Ahead: Cloud Infrastructure as a Key Strategy
Producers Savings Bank is also leveraging cloud infrastructure to enhance its technological capabilities. The bank has opted for a hybrid approach, this allows Producers Bank to take advantage of cloud scalability while maintaining the robust security and regulatory compliance that a traditional infrastructure offers. By deploying a well-planned cloud migration strategy, the bank ensures that it remains adaptable to future technological needs without compromising on security and compliance.
Here, Pab Ronald commented, "The power of a hybrid approach is in its flexibility. We can customize solutions where needed while ensuring our foundational technology remains reliable and easy to manage,"
Choosing the Right Technology Partner
"Careful planning, focus on compliance and standards, enterprise security measures, and finding the right partner are crucial for success," Pab Ronald emphasized. By working closely with trusted partners, Producers Savings Bank has been able to overcome many of the hurdles, positioning itself for continued growth and success.
He added, "By effectively addressing the challenges and implementing best practices, banks can leverage implementations and systems designed to create a well-integrated IT ecosystem that drives efficiency, innovation, and a superior customer experience for you."
Pab Ronald shared a few key takeaways for banks looking to modernize their operations:
"As we look to the future, our commitment is clear: to drive meaningful change in banking that not only strengthens our institution but also empowers our communities. By embracing innovation and nurturing partnerships, we're building a resilient foundation that can adapt and grow with the needs of our customers," concludes Pab Ronald, encapsulating Producer Savings Bank's vision for sustainable growth and impact in the Philippine banking landscape.