THE Bangko Sentral ng Pilipinas (BSP) has issued technical assistance guidelines that will help rural banks shift from legacy information technology systems to cloud-based core banking platforms.
Under Memorandum M-2026-042, the central will provide support for the implementation and multiyear subscription of a software-as-a-service (SaaS) core banking system to eligible rural banks.
The assistance aims to improve rural banks’ operational efficiency, resilience, business continuity, cybersecurity and regulatory compliance while supporting their competitiveness amid the financial system’s increasing digitalization.
The technical assistance will cover a maximum six-month implementation period, followed by a fixed 36-month subscription period after the system goes live.
The implementation support will include system configuration, data migration, system integration, testing, user training, cloud infrastructure, technical support, system updates and maintenance.
The BSP will also treat the SaaS core banking system as an outsourced information technology (IT) system, meaning participating banks will be subject to applicable BSP requirements on IT outsourcing and related risk management.
To qualify, a rural bank must have submitted an application or letter of intent under any of the Rural Bank Strengthening Program (RBSP) tracks covering merger or consolidation, acquisition or third-party investment, upgrade of banking license, or capital build-up during the program’s Sept. 21, 2022 to Sept. 21, 2025 availability period.
The bank must also comply with minimum capital requirements and must not have an existing subscription to a cloud-based or SaaS core banking system when it applies for the assistance.
The BSP will additionally consider the bank’s risk profile, supervisory assessment, outsourcing risk management framework, IT readiness and operational capacity.
The central bank will begin accepting applications one month from the issuance of the guidelines. The deadline for submissions will be announced separately through official channels.
Applicants will have to submit, among others, a board-approved application, proof of compliance with minimum capital requirements, certification that they do not have an existing SaaS core banking subscription, a self-assessment checklist and an IT outsourcing questionnaire.
The BSP will conduct a completeness check within five banking days of receiving an application and complete its evaluation within 25 banking days from the determination that the submission is complete.
The support is part of the RBSP Technical Assistance program, which was approved by the Monetary Board in January 2024 and also covers financial advisory and capacity-building components aimed at accelerating the digital transformation of rural banks.
