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Philippine Rural Banking Corporation (PR Bank)
Two-and-a-half decades and beyond
In the year 1977, a rural bank sprung up at the small town of Naguilian, Isabela. Small and struggling, yet committed, determined, aggressive and hardworking, the rural bank has grown to be the biggest rural bank in Region 2 and one of the largest in the Philippines. The rural bank transformed from a single branch to a 22-branch operation (and still counting), and reaping honors and commendations that are of national prestige and prominence, and metamorphosing from a very traditional banking to electronic banking.
That rural bank is the first ever rural bank to purchase the Fujitsu Philippines' TEAMBANKS (Fujitsu’s CA/SA solution for banks). The name is PHILIPPINE RURAL BANKING CORPORATION, or PR Bank, to its thousands of depositors and borrowers.
Indeed, the Bank has already gone a long, long way since it was founded fourteen years ago. How and why, we take a look at its foundations.
A Bank Built on Trust
Trust is a value that has been ingrained even at the onset in the formation of PR Bank.
“When Bangko Sentral Ng Pilipinas (BSP) approved our license in 1977 to operate a rural bank, the Board primarily consisted of childhood friends who trusted one another. This business alliance among friends started in 1975. We all just wanted to help our ‘kababayans’, mostly farmers, purchase agricultural equipment to help them get better yield from their fields”, Mr. Roberto P. Alingog, or RPA, as he is fondly called, President and CEO of the Bank, reminisced.
The Bank has gone a long way from its humble beginnings. Fourteen years later, that rural bank has grown to be the biggest rural bank in Region 2 and one of the largest in the Philippines, boasting of a strong network of 22 branches strategically located in prime cities and municipalities in Region 2, and the provinces of Pangasinan, Tarlac, Ilocos Sur, Ilocos Norte and Pasig City. It is the ninth largest rural bank in the entire Philippines in terms of Total Assets (per Bangko Sentral Ng Pilipinas-SRSO as of September 30, 2000), with a dynamic force of 215 able, well-trained and skilled personnel.
With its size and capabilities, the Bank also plans to expand nationwide and gain a foothold in the Visayas and Mindanao regions in two years time.
An OFW-driven Service
In a hyper-competitive industry such as financial services, a strategy and its flawless execution play a very crucial role in the bank’s success, and even its survival.
“Aside from the traditional financial products such as deposits and loans, we are also adding a product dedicated solely for the Overseas Filipino Workers (OFWs) through the PR BANK ANG BAHALA Program”, RPA said.
“PR Bank Ang Bahala Program helps the OFW manage the remittances that he/she sends back home by ensuring that the money sent will be used in accordance with his/her wishes, such as to acquire land or acquire a house and other things”, RPA explained. He expounded the logic of the service by saying that they found out that the challenge is not really about whether the money reached the OFW’s relatives/beneficiaries, but whether the money was used in accordance with the OFW’s plans.
The PR Bank Ang Bahala program was a product of a marketing research. RPA said that it is a service too retail and too rural for big banks, not a typical market for a commercial bank. RPA revealed that the Bank sent teams to Hongkong where there is a large concentration of OFWs, and asked them “how can we help you?”. From this very simple approach, PR Bank came up with the very personal PR Bank Ang Bahala program for the OFWs. The program is complemented by trainings on how the OFWs can efficiently budget their money.
A Business Challenge
“Even with such noble objectives and unique services, PR Bank still has to do business in the real world and they are grounded on it. Managing our data and metamorphosing it from a mere entrepreneurial concept to a corporate banking set-up is a great challenge for the Bank”, RPA shared.
He continued, “That is why we bought the Fujitsu software to manage our data and to be at par, in this part of banking operations, with commercial banks. We aim to be competitive as far as computing is concerned even if we do not need all the features of a full-blown TeamBanks.” But he was quick to point out, “however, we hope to have enough volume, innovative products, and scale to use all the features of the system.”
Banking and Technology
“Great value-for-the-money”, RPA said on why the bank chose FPI as vendor of choice. “PR Bank feels that for the kind of robust software that FPI gave us, we got great value for the money paid and we don’t think there will be problems in the foreseeable future. Additionally, we also like the way Fujitsu is implementing the system”, he added.
When asked how the Bank wants its customers to think when they hear about PR Bank, RPA said, “We would like to be remembered and regarded as the Bank that improved their livelihood and economic condition. We hope to see our clients stay with us when we have our first ATM and we hope to be the Bank that will introduce them to Internet Banking”.
Two-and-a-half decades... and beyond
Two-and-a-half decades are certainly not long enough. PR BANK is still looking beyond with great enthusiasm and vigor, towards a lot more years of e-banking. What with FPI by its side, PR Bank will surely go far and wide!
