GoodTech Information Systems, a sustainable fintech company, has partnered with Rural Bank of Silay City to develop two financial inclusion projects co-funded by the Asian Development Bank (ADB).
RB Silay secured two matching grants totaling PHP5 million from the ADB under its Fintech for Inclusion Transformation (FIT) program (www.fit-program.com) for the Digital Infrastructure Shared Services (DISquared) project and GoodBank mobile banking application. GoodTech will provide the technology support for these projects.
The grant will be sourced from the High-Level Technology Fund, a multi-donor trust fund that supports the development and integration of innovative technology and solutions into ADB-financed projects.
The funding grant will enable GoodTech to incorporate more advanced artificial intelligence features and iterate quickly to facilitate faster time-to-market of financial products and turnaround time to resolve technology issues. By developing a fit-for-purpose solution, GoodTech is giving rural banks access to mobile and digital banking capabilities previously available only to the bigger incumbents in the country at a fraction of the cost.
“Rural banks have realized they can compete with the big guys through technology,” GoodTech Cofounder Rogelio Umali said. “What we are launching is what rural banks need and we never stop refining it. That’s where the grant comes in. We are moving to a level where it will rival the best capabilities that is out there.”
For the DISquared project—an undertaking of the consortium of RB Silay, Banco Santiago de Libon, and Rural Bank of Medina—GoodTech will build a cost-effective, standardized, compliant and resilient technology infrastructure for rural banks and other small financial institutions. The GoodBank mobile banking app, on the other hand, will have enhanced electronic Know Your Customer, customer risk profiling, AI-driven analytics and financial coaching features.
GoodTech and its fully integrated product suite played an integral part in the successful digital transformation of RB Silay. The fintech helped the 63-year-old rural bank reduce its client onboarding process to five minutes, slash the loan application cycle from seven days to 24 hours, and increase outstanding loan portfolio by 56% in just six months.
Aware of the challenges faced by rural banks to modernize, GoodTech serves as a one-stop shop for fintech solutions, offering an end-to-end service from conceptualization to actual configuration, all the way to support and maintenance.
The 2021 Financial Inclusion Survey of the Bangko Sentral ng Pilipinas noted that while bank account penetration nearly doubled to 23% from 12% in 2019, e-money account ownership grew more than four times to 36% from 8%.
Umali adds, “The reality for rural banks is that e-wallets are eating their lunch money. There are more e-wallets accounts being opened than bank accounts so sooner or later, if they don’t transform, they will be left behind.”
About GoodTech
GoodTech is a sustainable financial technology company focused on empowering underserved communities in the Philippines through its fully integrated suite of financial, lending and payment products. In crafting financially inclusive tools, GoodTech draws on decades of experience in technology, microfinance, banking and community development. Established in 2019, GoodTech is recognized by the Bangko Sentral ng Pilipinas as a Registered Operator of Payment System.
About Rural Bank of Silay City
Rural Bank of Silay City was established in 1961 in Silay City in the province of Negros Occidental. The bank has embarked on an aggressive digital transformation initiative to expand its services beyond agricultural and salary loans to reach more unbanked and underbanked communities. The bank aims to be a catalyst for financial inclusion by providing affordable, reliable and customized products and services to empower the lives of overseas Filipinos, merchants, freelancers, and farmers.
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