Success for the Dominican financial services sector

The new branches of Banco Popular Dominicano observe the world-wide trend, incorporating larger self-service as very well as organization consulting&nbsp

Author: Francisco Ramirez, Govt Vice President of Retail Banking, Banco Well-known Dominicano

August 2, 2021

The Worldwide Monetary Fund (IMF) is under no circumstances recognised to heap praise on international locations, specifically building nations. However in early Might, the Bretton Woods institution was all around alone pouring accolades on the Dominican Republic. Pursuing the summary of Report IV Session, the IMF group led by Esteban Vesperoni praised the state for being a person of the most “dynamic economies” in Latin America.

The plaudits from the IMF were being not farfetched. For around a ten years, the Dominican Republic has sustained a strong development averaging 5.8 p.c. The amazing advancement, coupled by macroeconomic security and a seem external posture, to use IMF’s words, has resulted in notable advancement in the conventional of dwelling for a the vast majority of the country’s 11 million inhabitants. This is indisputable. In 2010, the country’s for every capita cash flow was $11,000. By the close of final year, it was all-around $19,000. Regardless of the ravages of COVID-19, the Dominican Republic’s economic system has remained resilient and is projected to grow by 5.5 percent this yr.

The money products and services sector has been at the coronary heart of the country’s stellar economic functionality by supporting important sectors even during the pandemic. In this regard, Banco Preferred Dominicano has emerged amongst banking companies that have been dedicated to supporting the economic system. With its large publicity across sectors like tourism, construction, agriculture, renewable electrical power, well being, education and learning, and SMEs amongst other folks, the bank has successfully played a key position in keeping the economy’s dynamism especially during the hard periods.

In the procedure, the financial institution has reached major expansion and now stands as a person of the main loan providers in the Dominican Republic. In the fiscal calendar year finished 2020, Banco Preferred Dominicano’s full property stood at $9.7bn, a 16.5 p.c growth from the past calendar year. All through the yr, its net bank loan portfolio grew by 8 % to $5.9bn when complete deposits greater by 14.4 percent.

Growth in all parameters has seen the bank rated hugely. In May perhaps, score agency Fitch Scores ratified the bank with the AA + (dom) ranking. This was awarded on the basis that Banco Well known Dominicano is “a harmless haven bank” specially in periods of systemic anxiety. The principal motive for this is the bank’s seem business product, stable profitability, wholesome portfolio quality, great capitalisation and ample liquidity management. These variables are important in making certain the bank maintains its organic expansion going into the potential.

Staying section of Grupo Well-liked, Banco Well-liked Dominicano boasts a loaded heritage dating again more than five a long time. Around the many years, the lender has managed to establish a formidable economical institution anchored on innovation. Innovation has been a fundamental pillar that has characterised the bank’s company supply and progress tactic. For the lender, new systems and electronic transformation have enabled it to continue on creating new company versions, items and expert services that have been central to its expansion.

 

Purposeful innovation
For this to come about, Banco Well-known Dominicano built a aware decision to embed innovation as portion of its strategic strategy. The consequence has been years of major investments in developing a modern-day open technological architecture that encompasses systems these types of as cloud computing, ‘machine learning’ and synthetic intelligence. It has also adopted the self-discipline of electronic user encounter (DX). This helps make it probable to crank out alternatives to customers’ requires, pay attention to them and invite them to participate in the proofs of strategy, prototypes and pilots prior to launching any solution or provider.

Developing a advancement tactic anchored on innovations and electronic transformation has brought about major rewards for Banco Well known Dominicano

Technological investments have designed Banco Preferred Dominicano a pioneer in innovation. It was the to start with bank in the Dominican Republic to launch an on the internet banking platform back again in 2001. A ten years afterwards in 2011, it was the 1st to introduce an app for cell equipment. Other firsts contain the introduction of credit history playing cards, incorporation of chip playing cards for safer transactions, contactless card payments as a result of in the vicinity of-discipline conversation (NFC) technology, digital wallets and QR code payments. With a large network of just about 200 branches and 1,121 multifunctional automated teller devices, Banco Well known Dominicano has adopted the ‘AGILE’ methodology that permits it to continually launch new innovations and speed up its electronic transformation course of action. Although designed to make certain the lender maintains its sector leadership, the bottom line of its aggressive innovation travel is client satisfaction.

Developing a advancement tactic anchored on innovation and electronic transformation has brought about sizeable rewards for Banco Well-known Dominicano. Nowadays, the lender is a reference issue for money innovation not only in the Dominican Republic but throughout the wider western hemisphere. Extra importantly, the financial institution will take satisfaction in serving about two million satisfied buyers due to its effective and consumer-centric design of assistance supply.

For the financial institution, which has regularly been voted the finest private lender in the Dominican Republic, furnishing prospects with platforms and channels that facilitate seamless transactions and interactions has been almost nothing shorter of transformative in driving advancement. Even additional prodigious has been the customer receptivity. This is mainly because the platforms and techniques are designed to make the lives of prospects easier and assistance them carry out their economic ambitions.

Nowadays, additional than 87 % of Banco Preferred Dominicano’s functions are electronic.

 

Shopper self confidence
Almost 1.4 million buyers are employing digital channels, a expansion of 33 % past 12 months. On a yearly basis, the lender receives in extra of 38 million visits to its Popularenlinea web-site. The bank’s Well known app, the major cell software in the market place, features over 700,000 users, a 20 p.c boost as opposed to 2019. In 2020, the app accounted for 24 million transactions, a 34 p.c improve from the past 12 months.

Generating an surroundings the place customers can transact digitally has been a masterstroke for Banco Popular Dominicano in many facets. It has arguably proved most useful throughout the COVID-19 disruptions, a period that has witnessed the use of electronic channels boost substantially. In essence, the growth has been a testomony to the customers’ have confidence in in the bank’s technological infrastructure ensuing in a swift migration to electronic platforms. The migration, on a broader standpoint, has served incorporate the spread of the pandemic. As the IMF observed, the Dominican Republic has performed properly in containing COVID-19. By mid-Could, the place experienced less than 300,000 reported instances.

Electronic platforms have been central in guaranteeing shoppers uninterrupted provider throughout the pandemic. For Banco Preferred Dominicano, they are also vital for monetary inclusion. By taking benefit of the simple fact that 80 p.c of Dominicans own a cell cellular phone, with about 50 per cent of these remaining smartphones, the lender has simplified wallets and accounts. In effect, it has authorized the unbanked to enter the official economic expert services sector simply and quickly. On top of that, as a result of its network of subagents, the premier and most extensive in the nation, the bank has introduced providers nearer to most remote communities.

Though a vast majority of clients are previously transacting digitally, Banco Popular Dominicano desires much more prospects on its electronic platforms. This describes why the bank carries on to introduce initiatives and incentives for even the most conservative consumers, who may be unwilling to migrate. The incentives involve not charging commissions on essential transactions this kind of as transfers in between accounts, payments to 3rd get-togethers and payments for items and services, between some others. Customers also have the selection of selecting accounts and items that have no commissions for complex merchandise and services.

Banco Well known Dominicano strongly thinks that digital migration is an unstoppable coach with far more clientele going through the advantages of digital banking each and every day. However, it doesn’t mean leaving at the rear of a trail of pissed off traditionalist clients who only know banking in its personalised form in the enclave of bricks and mortar. Even though conservative buyers have common channels at their disposal, the lender is continually creating improvements and optimisations to maximise the service working experience. One way that the bank has managed to greatly enhance operational efficiency has been via investment decision in robotic method automation.

In its digital transformation journey, Banco Preferred Dominicano understands that shopper self confidence in security of programs is paramount. Safety cuts throughout two elements – a ensure that accounts will not be compromised or breached, and procedure failures will not cripple the customer’s skill to have out transactions. It is for these good reasons that the lender has strong commitments on security.

 

Safe and protected
Very last 12 months, the financial institution ongoing to bolster its information safety and cyber safety software incorporating Central Financial institution of the Dominican Republic restrictions. On best of this, it was proactive in the improvement of technological and procedural capacities for the monitoring, detection and administration of cyber safety incidents, creating use of AI and equipment learning technologies. In the course of the yr, around 30,000 activities were being monitored for every next. Internally, the steps have set the lender at the forefront of keeping integrity of customers’ transactions and facts. Externally, buyer self-assurance is boosted by a distinctive electronic vital or Common Token assigned to them for the sole reason of authenticating just about every procedure. The financial institution has also established up a electronic communication channel through which shoppers can report ‘phishing and spoofing’ tries.

Irrespective of achieving impressive milestones on the digital entrance, Banco Common Dominicano has no intention of slowing down or resting on its laurels. It goes devoid of stating that with 17 industrial banking institutions, the top rated five of which command about 80 p.c of the sector, the Dominican Republic’s banking market continues to be very competitive. For this motive, coupled with the wish to retain a advancement trajectory, the lender intends to proceed innovating and furnishing clients with new slicing edge methods that fulfill their wants and make their working experience the finest it can be.

Priorities for new options will be oriented to the intensive use of sophisticated digital analytics to aid the creation of products and solutions, an satisfactory adoption of AI in banking services and continuing to develop the media. The bank also programs to proceed along the street of electronic banking in endorsing consumer usefulness. It remains a priority for the financial institution to usually listen to its clients and co-build with them. This will keep on to be the fundamental theory of its improvements.

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