Pioneering innovation and sustainability in Dominican banking

Are you able to define the financial institution’s technique and clarify how you’ve navigated the challenges and alternatives introduced by the present financial local weather?
Banco Well-liked’s technique relies on innovation with a sustainable imaginative and prescient and a customer-centric strategy. Our important goal is to ship a singular expertise by providing companies and merchandise that match clients’ wants and preferences. Banco Well-liked caters to all segments of the financial system with a differentiated business, product, and advisory providing. For company and center market clients, we offer revolutionary Loan, money administration, and capital markets merchandise, supported by relationship managers and specialists tailor-made to the corporate’s wants. For SMEs and retail clients, we base our providing on relationship managers who can advise clients and main digital channels the place they’ll full all their transactions and product companies.

Our digital transformation and business methods are based mostly on an innovation tradition. We’re continually trying to rework supply channels to create worth for purchasers whereas redesigning and streamlining inner processes to extend pace of response and seize efficiencies.

The core parts enabling this transformation on the financial institution are: 1) A state-of-the-art IT infrastructure that leverages main applied sciences and cloud functions for quick improvement, scalability, and reliability; 2) Knowledge analytics and AI fashions as key differentiators in our decision-making course of; 3) Operational effectivity based mostly on agile processes adopted all through our organisation; 4) Greatest-in-class expertise and an innovation tradition that’s frequently evolving; and 5) Analytical and predictive danger administration practices that anticipate the dangers we face as a financial institution, together with cybersecurity. This technique is supported by our sustainable imaginative and prescient; we’re leaders within the nation in ESG practices.

The Dominican Republic has loved a optimistic financial atmosphere in recent times, however like in all places else, the pandemic posed difficulties that required agency actions. Throughout that interval, the CEO led the financial institution to beat challenges and seize alternatives in subjects akin to: 1) in collaboration with financial authorities and the federal government, Banco Well-liked strongly supported people and corporations in all financial sectors, akin to tourism, which confronted extreme challenges. This backing was important for the sector’s revival, making IT one of many quickest on this planet to get well from the pandemic; 2) Acceleration of digital transformation to serve clients remotely. Immediately, 88 % of transactions and over 25 % of product gross sales are performed via digital channels; and three) Inner course of automation and robotisation to enhance supply and effectivity, in the course of the previous 5 years the financial institution’s effectivity ratio improved greater than 1,300 bps.

At current, the nation is experiencing a optimistic financial local weather that has stimulated progress and attracted investments. The IMF expects the Dominican Republic to develop 5.4 % in 2024. This optimistic financial outlook brings alternatives, and the CEO is main the financial institution to have a strong and sound progress in our Loan portfolio and proceed to drive improvements launched to the market to take care of our market management and enhance buyer satisfaction.

The technique Banco Well-liked has adopted led to very beneficial outcomes. In 2023, our belongings grew by 19 %, and we closed the yr with a ROA of three.30 % and a ROE of twenty-two.85 %. This progress was achieved with a really sound Loan portfolio, with overdue loans at 0.86 % of our portfolio and a reserve ratio of three.2 occasions overdue loans. Furthermore, now we have a powerful capital, with a solvency index of 14.8 %.

How did the financial institution contribute to the development of sustainable and accountable banking practices within the Dominican Republic?
Immediately’s banking panorama requires sustainability and accountable banking as key elements. At Banco Well-liked, sustainability is a part of our DNA, and now we have frequently bolstered this imaginative and prescient. We grew to become the primary financial institution within the insular Caribbean to hitch the United Nations Rules for Accountable Banking as a signatory associate, a global coalition of banks launched in 2019 to align banking companies with the Sustainable Improvement Targets (SDGs) and the Paris Local weather Settlement, thereby supporting social and sustainable improvement. We’re additionally a part of the Partnership for Carbon Accounting Financials (PCAF), which develops the World Customary for Greenhouse Gasoline (GHG) Accounting and Reporting.

To advertise sustainable improvement and clear vitality, we lead inexperienced financing within the nation, with greater than $600m in loans for numerous clear vitality tasks, together with a latest $100m Loan to construct the most important photo voltaic park in Central America and the Caribbean. Moreover, we provide retail clients and SMEs the ‘Hazte Eco’ resolution, the primary inexperienced programme within the nation to supply advisory and financing (together with inexperienced leasing) companies to advertise sustainability initiatives. Furthermore, in 2024 we issued the primary inexperienced bond within the Dominican Republic, which can be allotted to fund loans from our inexperienced portfolio to help the nation’s transition to a low-emission financial system.

Internally, we purpose to cut back our environmental impression via initiatives as putting in photo voltaic panels, implementing environment friendly lighting and water management methods, and working recycling programmes for workers and clients. Our workers have planted greater than 1.2 million bushes in numerous areas of the nation. We devour greater than 8MW of fresh vitality, partially produced by photo voltaic panels put in at our branches.

How does Banco Well-liked plan to take the enterprise ahead over the following few years?
Within the coming years, our enterprise can be pushed by innovation and a mandate to advertise monetary inclusion. This innovation will cowl services and products to fulfill clients’ wants and expectations; superior analytics and AI fashions to reinforce decision-making; and inner processes and danger administration practices to realize effectivity and agility.

We’re leaders in digital transformation, enabled by agile methodologies, and supply probably the most superior monetary companies and merchandise out there. For instance, our new app ecosystem options 4 specialised cellular functions that allow on-line buyer onboarding and canopy all the pieces from private monetary administration options to company banking, remittance reception, and the renovation of the Well-liked App – probably the most downloaded cellular monetary software out there. In 2023, the Banking Superintendency recognised Banco Well-liked as the most effective digital financial institution within the Dominican Republic for the third consecutive yr.

Analytics and synthetic intelligence are reshaping the monetary sector and may have a significant impression within the coming years. We envision a future the place our interactions, insights, and options for purchasers are influenced by these applied sciences. We established the Digital Centre of Excellence and the Knowledge and Analytics Centre of Excellence a number of years in the past to reinforce our capabilities. Immediately, now we have a world-class group that retains Banco Well-liked’s innovation on par with probably the most related world gamers within the trade. This Centre of Excellence has applied completely different analytics use instances alongside the client’s lifecycle akin to shopper acquisition, subsequent greatest motion, shopper satisfaction, and churn prevention, amongst others.

Synthetic intelligence will proceed to vary how we talk with clients and function internally. At Banco Well-liked, we use AI options for fraud prevention, code improvement, and cybersecurity. Nonetheless, we consider that generative AI, mixed with our analytics experience, will revolutionise how we interact with and ship worth to our clients. Subsequently, we’re creating inner abilities and in partnership with Microsoft creating generative AI fashions centered on shopper acquisition, shopper satisfaction and inner processes.

How is digital integration included into enterprise technique?
Innovation is a core worth of our organisation. Digital transformation is a crucial a part of our enterprise technique. The financial institution has all the time been a pioneer in innovation in monetary companies, persistently introducing new options to the general public. We consider that our ongoing digital transformation is a key benefit, serving to us strengthen our market management and obtain excessive buyer satisfaction.

As I discussed earlier, digital transformation has revolutionised our channels, offering clients with the power to conduct all their transactions securely and conveniently on their computer systems or cellular gadgets. Immediately, 88 % of transactions and over 25 % of product gross sales are accomplished via digital channels. Our objective is that quickly, clients will have the ability to carry out 100% of their transactions, companies, and product purchases via our digital channels, all whereas having fun with the distinctive buyer expertise and comfort they anticipate.

Digital transformation has impacted not solely our customer-facing channels, but additionally inner processes. We recognise the significance of getting absolutely automated, end-to-end processes. To attain this, now we have applied methods akin to digitalisation, automation, and robotisation of processes, enabling quick, dependable, and environment friendly supply to clients.

To help this digital transformation, the financial institution has made substantial investments to modernise our IT capabilities with a versatile structure based mostly on microservices, enhancing our agility and the reliability of improvements. Our information centre was licensed as Tier III Design and Facility by the Uptime Institute, the one monetary establishment within the Dominican Republic with this achievement. Moreover, now we have adopted cloud infrastructure and functions, enabling sooner deployment, scalability, and effectivity.

What particular help does your financial institution present to the tourism sector, given its significance to the financial system of the Dominican Republic?
The tourism sector is significant for the Dominican financial system, immediately and not directly influencing the nation’s financial exercise and employment. For over 30 years, Banco Well-liked has firmly supported this sector, incomes the status because the ‘Tourism Financial institution.’ Our technique focuses on sustaining long-term, sustainable relationships with all clients and stakeholders within the tourism trade, appearing as an enabler of its progress. This dedication extends past having the main tourism credit score portfolio within the nation to providing a complete vary of specialized merchandise, together with money administration, mission financing, and service provider buying companies tailor-made to the wants of tourism shoppers.

Banco Well-liked understands that every mission has distinctive options, methods, and necessities, and we adapt to help clients of their lodge investments and operations. In 2023, we financed tasks investing over $500m within the nation. For 2024, now we have accredited amenities for tasks exceeding $700m, impacting over 4,600 rooms. Our tourism credit score portfolio exceeds 40 % of the banking Loan portfolio to the sector. Through the years, this help has strongly incentivised international funding, ensuing within the development of over 26,500 rooms and the creation of greater than 33,000 Jobs within the nation.

Banco Well-liked recognises the sector’s significance to the nation and the significance of co-ordination with the federal government and tourism associations. In consequence, we take part in all main tourism gala’s to advertise the Dominican Republic and its funding alternatives. Moreover, we sponsor, in collaboration with ASONAHORES, the primary tourism research performed within the nation to evaluate tourism’s financial impression. Greater than 20 years in the past, we established a specialised enterprise space within the financial institution to supervise the tourism sector.

What measures has Banco Well-liked Dominicano taken to make sure monetary inclusion throughout numerous demographic teams within the Dominican Republic?
Banco Well-liked was based 60 years in the past with a mandate to advertise monetary inclusion in an effort to guarantee financial and social progress within the nation. Considered one of our important goals is to facilitate progress to all Dominicans in a sustainable manner. Undoubtedly, via monetary training and inclusion, we help the nation’s socio-economic improvement.

Banco Well-liked’s technique entails socially accountable initiatives to develop entry to monetary companies for the unbanked and underbanked. These initiatives embrace tailor-made merchandise, accessible channels, and complete monetary training. Our deposit merchandise, akin to ‘Cuenta Digital Libre,’ together with bancassurance choices and remittance companies, are designed to fulfill the monetary wants of this inhabitants merely and successfully.

Our channel choices have expanded to succeed in extra individuals with particular wants, incorporating revolutionary initiatives. Our APP ecosystem promotes monetary inclusion and training with specialised functions: GNIAL for younger individuals getting into the monetary system, YAVA for purchasers receiving remittances and accessing banking merchandise, and Comerza for small retailers to transact with clients utilizing QR codes. Moreover, now we have ‘Subagente Well-liked,’ a community of retailers the place clients can carry out common transactions conveniently and effectively. These embrace {hardware} shops, pharmacies, grocery shops, and in addition to different areas. The ‘Subagente Well-liked’ community at the moment consists of about 2,000 affiliated shops.

In monetary training, Banco Well-liked has helped over 200,000 SMEs and people. For people, now we have a digital academy that provides free programs, workshops, and instruments to assist customers handle their private funds, via a web based platform and in-person classes. And for SMEs, now we have Impulsa that offers steering to small companies to spice up their competitiveness and improve their monetary administration. Impulsa has a devoted web site and probably the most related SME convention that takes place yearly.

Moreover, we provide a scholarship programme that covers the total value of college training for low-income college students. This scholarship has benefited greater than 650 college students who after graduating have gone on to work at main corporations within the nation.

How does Banco Well-liked Dominicano plan to handle the challenges posed by digital safety and information safety in its operations?
One of many important challenges we’ll face within the coming years is cybersecurity and information safety. Monetary establishments are encountering more and more subtle assaults day-after-day. Moreover, the emergence of synthetic intelligence is offering new instruments for cybercriminals to focus on our infrastructure and clients with fraudulent transactions.

At Banco Well-liked, now we have recognised these dangers and developed a strong cybersecurity technique centered on cyber safety, monitoring, and fostering a cyber-aware tradition amongst workers and clients.

By way of cyber safety, now we have applied superior safety instruments (EDR, NGFW, PAM, WAF, IDP, and so forth) to safeguard our information, infrastructure, and networks, each on premise and on the cloud. We shield clients with sturdy authentication protocols, together with biometric authentication for high-risk transactions.

For monitoring, our Safety Operations Middle (SOC) utilises numerous instruments (community detection and response, SIEM, automated response, and so forth) and AI fashions to detect potential breaches throughout channels, networks, emails, servers, and endpoints.

We perceive that the notice and readiness of workers and clients represent the final line of protection in opposition to cybercriminals. Subsequently, now we have applied a extremely efficient technique to construct a powerful cyber tradition amongst our workers, which incorporates certifications, frequent reminders, and moral phishing campaigns. This consciousness extends to our clients via campaigns by way of unsolicited mail, radio, and social media, offering Information on frequent assaults and tips about the best way to shield themselves.