Celebrating 60 years of innovation in Dominican banking

Since its institution within the mid-Nineteen Sixties, Banco Fashionable Dominicano has been on the forefront of democratising monetary providers within the Dominican Republic – a rustic of over 11 million individuals and one of many fastest-growing economies in Latin America and the Caribbean. The financial institution is in the meantime at the vanguard of the digital transformation of the nation’s banking sector, with a rising vary of digital merchandise and purposes on provide. Banco Fashionable can attribute its longevity and success to a method that features steady innovation, monetary robustness and a customer-centric method.

Whereas the financial institution can level to a bunch of achievements throughout its 60-year historical past, the one in every of which IT is most proud in latest occasions is the issuance of its first inexperienced bond. That is additionally the primary such challenge by any monetary firm within the Dominican Republic. The ten-year fixed-rate bond, issued in Could 2024, aligns with the financial institution’s sustainability technique, permitting IT to Finance initiatives that promote clear vitality use and vitality effectivity.

Inexperienced bond pioneer
The issuance of the inexperienced bond was a big milestone for Banco Fashionable and for the Dominican monetary sector extra broadly. This monetary instrument has enabled the financial institution to direct funds in the direction of sustainable initiatives, together with the promotion of renewable vitality, vitality effectivity, and different initiatives that assist cut back environmental influence. For Banco Fashionable, this transfer not solely strengthens its dedication to sustainability, but additionally paves the way in which for a greener and extra resilient economic system within the Dominican Republic. The primary tranche of the inexperienced bond amounted to RD$300m (round $5m at present change charges), out of a complete of RD$2.5bn ($42m) accredited. IT will probably be solely allotted to institutional traders, particularly to the pension fund directors AFP Fashionable, Crecer, Siembra and Reservas.

The issuance of the inexperienced bond was a big milestone for Banco Fashionable

Furthermore, the inexperienced bond is just one side of the Banco Fashionable’s sustainability technique, which is built-in into all sides of its operations. The inexperienced bond enhances the financial institution’s portfolio of eco-friendly monetary merchandise, similar to loans for electrical autos and for photo voltaic panel set up, reflecting the financial institution’s dedication to selling accountable and sustainable practices amongst its clients and all through the nation. The financial institution goals not just for financial progress – the IMF forecasts actual GDP progress of 5.4 % for the Dominican Republic in 2024 – but additionally to generate constructive environmental outcomes and social influence.

Digital innovation
Banco Fashionable Dominicano, a part of Grupo Fashionable, has additionally been a pioneer in introducing and incorporating digital cost applied sciences within the Dominican Republic. By means of its collaborations with Apple Pay and Google Pay, the financial institution presents its clients the flexibility to conduct contactless transactions rapidly and securely. This integration facilitates using debit and bank cards on cellular units, offering better comfort for customers and supporting the transition to a digitised economic system.

And in celebration of its sixtieth anniversary, Banco Fashionable has launched a revamped digital ecosystem, with 4 new specialised cellular purposes on provide. These 4 apps are: Comerza for micro-enterprises, Gnial for younger individuals, Yavá for remittance administration and Biz for company shoppers. Moreover, the App Fashionable, the financial institution’s flagship cellular app, has been redesigned to supply a extra intuitive consumer expertise. This household of apps goals to optimise monetary administration for various segments of the inhabitants, promote monetary inclusion and improve the consumer expertise. All apps can be found for each iPhone and Android customers.

Expertise has proven that our clients are eager to take up digital merchandise and purposes, though there’s clearly scope for additional growth. At current, round 25 % of all Banco Fashionable’s monetary merchandise are obtained digitally, and this proportion rises upwards to 50 % for bank card activations.

Moreover, 40 % of claims are actually submitted via the financial institution’s a number of apps, every designed for various banking segments. The Fashionable App alone has a median of over a million customers, who can entry greater than 50 self-service options together with third-party funds, transfers between accounts, and bank card and Loan funds.

Trying to the longer term, Banco Fashionable is concentrated on personalising its digital providers via using synthetic intelligence and app optimisation. All our apps are designed to repeatedly evolve primarily based on consumer wants. For instance, we intend that the Gnial app for younger individuals will embrace new functionalities primarily based on consumer behaviour. The financial institution can also be exploring new fintech options and growing platforms that promote monetary inclusion via instruments that may make banking simpler and extra accessible to a bigger share of the inhabitants. The Dominican Republic nonetheless has some scope to enhance on this space; in line with information from the World Financial institution, solely 51 % of adults within the nation had a checking account in 2021.

Investing in cybersecurity
Towards a background of rising cyber threats worldwide, Banco Fashionable has carried out a complete cybersecurity method, investing in superior applied sciences similar to multifactor authentication methods, proactive monitoring, and real-time menace detection. These measures are designed to safeguard the integrity of transactions and the delicate Information of the financial institution’s clients. Moreover, the financial institution has adopted worldwide safety requirements, making certain a secure setting for all digital operations.

For instance, IT has a complicated monitoring system contained inside its technological infrastructure, operated by its Safety Operations Centre (SOC) and its Community Operations Centre (NOC). Each items monitor greater than 30,000 occasions per second, making certain fixed safety of the financial institution’s methods and the digital integrity of its clients.

Buyer schooling is a precedence for Banco Fashionable, and the realm of cyber safety is not any exception. Therefore the financial institution has launched wide-ranging consciousness campaigns on cybersecurity subjects, utilizing digital channels in addition to conventional media to coach customers in regards to the dangers of fraud, phishing and different cybercrimes. We additionally provide a spread of on-line assets to assist clients higher shield themselves, together with periodic suggestions on strengthening their digital defences.

For instance of this, there’s the ‘Pistas de Seguridad’ (safety suggestions) initiative whereby Banco Fashionable shares suggestions and proposals on digital consciousness via its web site, social media and electronic mail to its buyer base. The financial institution has additionally created the tutorial podcast ‘Crimson Alert: We’ve Been Hacked!’ aimed toward small and medium-sized companies. The podcast presents imaginary situations of cyberattacks on several types of SME with poor practices, together with the potential repercussions of their errors.

Supporting younger individuals
Banco Fashionable believes very strongly in supporting the younger individuals of the Dominican Republic and has put in place various insurance policies and programmes to realize this. Going ahead, the financial institution will proceed to face by this important phase of the inhabitants (with these aged between 10 and 24 presently making up simply over one-quarter of the Dominican inhabitants, in line with the United Nations Inhabitants Fund), innovating and growing instruments that help younger individuals’s initiatives and desires.

Banco Fashionable believes very strongly in supporting the younger individuals of the Dominican Republic

As talked about, the financial institution has launched the Gnial app, an modern platform aimed toward younger individuals from Generations Z (these born from the mid-Nineteen Nineties to round 2010) and Alpha (these born from round 2010 onwards). Amongst different issues, this app permits customers to set financial savings targets, make fast transfers utilizing a telephone quantity, and withdraw money via a brief code system often called Código Money. Gnial additionally gives entry to promotions and unique advantages for the youthful age group. The Jóvenes Fashionable Account enhances this providing, selling the advantages of saving from an early age. These options have been very properly acquired, with hundreds of younger individuals integrating into the financial institution’s digital monetary ecosystem, and so serving to to drive ahead youth monetary inclusion within the nation.

The financial institution in the meantime has a confirmed observe file of help for youth schooling. The Becas Excelencia Fashionable Programme presently has greater than 326 energetic members and 312 graduates, solidifying its place as essentially the most complete scholarship programme within the Dominican monetary sector. This programme covers the price of college schooling at recognised establishments within the nation. Along with monetary help, the programme gives coaching in comfortable abilities {and professional} improvement and in addition topics which might be associated to private Finance, getting ready younger individuals to face the challenges of the job market. During the last decade, over RD$200m ($3.3m) has been allotted to the event of this initiative, which promotes high-quality schooling and opens up significant employment alternatives for younger individuals.

This initiative not solely contributes to the private improvement and success of the person college students concerned, but additionally has a constructive influence on the economic system of the Dominican Republic as an entire. By producing expert professionals, the programme fosters the event of native expertise and boosts competitiveness within the nation’s key financial sectors.