Union Bank of the Philippines is cutting operational costs by moving more of its internal processes on the blockchain. Aside from cutting its expenses, it also wants to learn more about the new technology, said Union Bank’s CEO, Mr. Edwin R. Bautista.
The bank that initially embraced the blockchain in the country is making several internal blockchain applications. According to Mr. Bautista, it has launched a number of internal blockchain applications and the company’s goal is to use blockchain “as much as we in the internal process”.
The Aboitiz-led lender is also aiming to reduce its costs by using the blockchain.
“We want to reduce our costs. At the same time, it also helps us learn the technology that we can now apply for customers,” – Mr. Edwin R. Bautista, CEO, Union Bank of the Philippines
Mr. Bautista previously shared during a press briefing that many of its processes are ripe for its move to “blockchainize” internal processes. He noted that some of these are check clearing, account opening, and funds transfer.
In a previous interview the bank’s Chairman, Mr. Justo Ortiz with ANC, he stated that it is doing “under the hood blockchain executions”. He added that by using simple blockchain solutions, it was able to save around 30%.
Union Bank is using the technology in boosting its productivity and is looking forward to using it to improve customer service soon.
Union Bank also spearheaded Project i2i that aims financial inclusivity to rural banks in far-flung areas. Initially piloted to five banks: Cantilan Bank Inc. of Surigao del Sur, PR Savings Bank, City Savings Bank, FairBank, and Progressive Bank, it is eyeing November of this year as its official launch date.
It is also targeting to connect 100 rural banks using the Project i2i and the blockchain by the end of the year according to the bank’s Chief Technology Operation’s Officer, Mr. Henry Aguda. He stressed that how can they help the unbanked if the rural bank itself is unbanked. He shared that these banks are not members and connected to key banking networks such as Bancnet and Swift. Project i2i will help them out.
Mr. Edwin Bautista also stressed that jobs will not be lost but only old processes. This is because a number of its brick and mortar branches are transitioning to Ark (a branch that uses iPads instead of paper and other tech-focused gadgets). He said that he will “retool people from their existing jobs” and “give them first crack at other jobs”.
Source: Business World