UCPB earmarks millions to upgrade core banking system

MANILA, Philippines - Sequestered United Coconut Planters Bank (UCPB) is setting aside $10.1 million over the next five years for information technology (IT) investments. In a statement, the bank said the amount, equivalent to around P449.45 million at $1:P44.50, will cover the acquisition of a new core banking system application software,hardware, customization work, and training and implementation activities. A new core banking system will enhance the bank’s operating efficiency as this makes the "straight through" processing of customer transactions possible. This means that a posted transaction will automatically update related records — and in the process bring down costs, improve customer service, boost revenue generation capacity, and enhance risk management. It will also enable the bank to consolidate customer and financial data originating from various channels such as branches, automated teller machines (ATMs), as well as phone and Internet banking platforms. Aside from upgrading its core banking system, UCPB also said it will upgrade its branch delivery system, such that branches can verify signatures online, among others. The bank has also begun improving its Internet banking platform. Automation of its treasury and trust systems is underway and will be launched within the year. UCPB’s move to upgrade its IT systems follows an industry trend. A survey by US-based research firm Financial Insights showed that Philippine banks are likely to spend a total of $338 million (or roughly P15.04 billion at $1:P44.50) this year mainly on core banking systems. The bank, which has lagged behind its peers, was sequestered by the Philippine Commission on Good Government in the aftermath of the "people power" revolution in 1986. The government is planning to infuse P25 billion into the bank to boost its capital and make it more competitive. - Gerard S. dela Peña, BusinessWorld