The Bangko Sentral ng Pilipinas is urging non-stock savings and loan associations in the country to innovate and leverage on information technology amid intense competition with financial technology companies that offer the same products and services.
Arifa Ala, assistant governor of the central bank’s Financial Supervision Sub-Sector II, said several fintech companies are now doing lending activities.
Ala said, “We expect them to innovate and make use of information technology to keep themselves competitive relative to fintech companies. [They] should also take that into consideration if they want to remain competitive and also reduce the cost of doing their businesses.”
Non-stock savings and loan associations are non-profit corporations engaged in the business of accumulating members’ savings for lending to households by providing long-term financing for home building or development and for personal finance.