J. Albert Gamboa l March 27, 2024 l Business Mirror
SEVERAL listed companies in the Philippine Stock Exchange (PSE) are in various stages of discussions with their foreign counterparts for potential collaborations. Two of them recently announced the launch of their partnerships with leading technology firms in Europe and the Pacific region.
E-banking and cybersecurity are the key factors behind the joint venture (JV) between Diversified Financial Network Inc. and CIC Consulting Informatico of Spain. The JV agreement was formalized last week by DFNN President Ricardo Banaag and CIC Chief Executive Officer Ramon Lopez.
Their strategic partnership will enable both companies to enter new markets and capture market share while delivering innovative products and services. Other sectors that the JV is targeting include Internet of Things or IoT, biometrics, blockchain technologies, customer support, and value added services.
DFNN will provide the complementary software solutions and regulatory expertise as CIC brings in its comprehensive software suite and wealth of tech experience. Banaag shared that “this transformative journey promises to push boundaries, redefine standards, and ultimately elevate the nation’s technological prowess to greater heights.” The DFNN Group’s nationwide reach and deep understanding of the local market are critical to the partnership in navigating the complex Philippine landscape.
For his part, Lopez said “this JV will provide CIC an international reference setup in the Philippines, a growing market with high business potential for our core business.” CIC’s cybersecurity tools integrate advanced artificial intelligence (AI) algorithms to detect and counter such emerging threats as AI-powered malware, deepfake manipulations, and sophisticated phishing attacks. Among its major clients are Spain’s Telefonica, Qatar Petroleum, PTT of Thailand, and the United Arab Emirates’ Dubai Airports Co.
Prospects are bright for the DFNN-CIC collaboration as they capitalize on the growing demand for innovative tech solutions. This would unlock opportunities that will empower businesses, enhance customer experience, and shape the future of technology in the country.
Another PSE-listed company that has partnered with a foreign firm is Citystate Savings Bank (CSBank), the thrift banking arm of the ALC Group of Companies. CSBank has tapped Australian-headquartered Geniusto International Ltd. for its digital banking channel that will enable the Filipino thrift bank to create its own e-wallet as part of the plan to become a hybrid bank that will occupy both digital and physical spaces.
The partnership contract was signed last month between CSBank President Jaime Valentin Araneta and Geniusto Philippines President Shane Hermans as witnessed by Geniusto International CEO Matthew Edmunds. According to Araneta, the partnership aligns with the “Digital Payments Transformation” roadmap of the Bangko Sentral ng Pilipinas (BSP) to reach unbanked and underserved Filipinos.
Edmunds was delighted to welcome CSBank into Geniusto’s family of financial institutions around the world. He explained that the digital banking platform will allow the bank to scale its operations rapidly and be empowered to provide new services to depositors.
In a media interview, Araneta revealed that CSBank is preparing the paperwork for the BSP’s Electronic Payment and Financial Service (EPFS) license, after which the digital bank can start operating subject to prior BSP approval hopefully by end-2024, which will lead to its active participation in the Philippine Payments Management Inc. system.
Originally from the United Kingdom, Geniusto has established its head office in Perth, Western Australia. Over a quarter-century of operations, it now has a global client base of 19 foreign financial institutions in a dozen countries across North America, Southeast Asia, and Europe.
CSBank opened its first branch in 1997 and has 34 branches strategically located in the Philippine archipelago today. It offers deposit and investment products; consumer and commercial loans; trust and treasury products; ATM services and foreign currency exchange. Its most recent product offering is the country’s first-ever bank product for pets known as the “Prawxy Pet Saving Account.”
Collaborating with Geniusto will enable CSBank’s clients to instantly open an account, make bill payments and fund transfers, as well as other mobile and internet banking applications that are going to be introduced in the future. Araneta believes that “digital banking will be the game-changer for us because not only will it allow us to acquire new clients, but the fee income potential is quite huge.”
*** Joseph Gamboa is the vice-chairman of the Financial Executives Institute of the Philippines’s Ethics Committee and director of Noble Asia Industrial Corp. The views expressed herein do not necessarily reflect the opinion of these institutions and the BusinessMirror. Visit www.finex.org.ph. Photo from Pinterest.