The Dominican multiple banking has made notable progress in the last two decades in terms of innovation and technologyby incorporating digital tools and the decentralization of their services.
This transformation can be seen in the permanent inclusion of alternate channels that facilitate access to services and create tangible benefits for clients and productive sectors that access banking in search of financial instruments, as stated by the president of the Association of Multiple Banks of the Dominican Republic (ABA), Rosanna Ruiz.
By participating in the elDinero Economic Forum, Ruiz stated that this digital transformation has been feasible thanks to the modernization of the payment system of the Dominican Republicmacroeconomic stability and the effective response of commercial banks, via constant financial innovation, to the needs of users during the last 20 years, including the disruptive scenario posed by the pandemic.
The executive explained that this scenario accelerated digitization and with it the prevailing need to invest in cybersecurity.
“In this way, not only efficiency is generated in banking, but costs are also eliminated, face-to-face attendance is reduced, and interaction with the user is facilitated, in an environment with technological, legal, and information security,” said Ruiz, when exposing about the advantages of internet banking, mobile applications, bank sub-agents and other innovations implemented by the entities that make up the sector.
He stressed that the union is committed to a digital agenda that motivates the financial inclusion of citizens, households, micro, small and medium-sized companies.
pondered that More than 14% of the growth in credit granted is focused on continuing to finance the productive sectors demanded by the economy.a, as part of the efforts of multiple banks to continue playing a leading role in boosting the country’s economy.
5.1 million users
In a press document, the ABA detailed that the banking sector registers a total of 5.1 million internet banking users in 2022which means an increase of 3.4 million in absolute terms and 302% in relative terms since 2015.
Regarding the banking subagents, he explained that they concentrate 57% of clients who request services in person, which consolidates this figure as the main point of attention of the sector. In the last six years, their share has grown by 18%, he noted.
Increase
Recently, the president of the ABA highlighted the patrimonial solvency of the Dominican bank, indicating that in August it was located in 16.04%, well above the 10% regulatory requirementMeanwhile, portfolio delinquency stood at historical lows of 0.8% as of September 2022, which he said reflects the high quality of bank assets.
Likewise, Ruíz indicated that the coverage index of this unproductive portfolio is located at 561.4, in its historical maximums, which indicates that these provisions fully cover possible losses due to irrecoverability of overdue loans.
Subagents.
The ABA highlighted that the growth in the operations of bank subagents is consolidated as a business opportunity for micro, small and medium-sized enterprises (mipymes) who decide to join this formal banking service.
The amounts transacted through the operational establishments as bank sub-agents reached almost RD$67 million in 2021.