As part of its strategy to become one of the top consumer banks in the Philippines, East West Bank is investing in modernising its core banking systems. Led by chief technology officer (CTO) Barani Sundaram, the bank’s digital transformation efforts are focused on enhancing customer service, improving operational efficiency, and building a scalable technology infrastructure that supports long-term growth. This transformation is essential as the bank aims to keep pace with the rapid evolution of the financial services industry and the increasing expectations of its customers.

Founded in 1994, East West Bank is a significant player in the Philippine banking industry. Over the years, the bank has steadily grown its customer base and expanded its range of services. Initially focusing on consumer banking, East West Bank has diversified its portfolio to include corporate banking, treasury, and wealth management services.

In the mid-2000s, the bank embarked on an aggressive expansion plan, acquiring several smaller banks and financial institutions to increase its market presence. One notable acquisition was that of Green Bank in 2011, which significantly expanded East West Bank’s reach into the rural banking sector. These strategic acquisitions have played a crucial role in establishing East West Bank as one of the leading banks in the country.

Core banking system overhaul

East West Bank is upgrading its core systems to a modern, cloud-based platform by Temenos. This new system is designed to handle the bank’s growing customer base and the increasing demand for digital banking services. The bank's decision to adopt cloud technology is particularly significant, as it provides the flexibility and scalability needed to support future growth and innovation.

"We’re committed to providing our customers with a seamless banking experience," said Sundaram. "This system upgrade is crucial for improving our operational efficiency and delivering the services our customers expect."

The cloud-based platform also enhances the bank's ability to process transactions quickly and securely, which is a critical factor in maintaining customer trust and satisfaction.

Improving customer experience

One of the primary goals of the system upgrade is to enhance the customer experience. With the new platform, East West Bank can offer more personalised services, faster transaction processing, and greater security. The bank is also focusing on improving its digital channels, including mobile banking and online platforms, to provide customers with convenient and accessible services.

"Our customers are at the centre of everything we do," Sundaram emphasised. "With the new system, we can offer them a better banking experience, whether they’re using our mobile app, visiting a branch, or contacting customer support."

The bank has also introduced artificial intelligence (AI)-powered chatbots to assist customers with their queries, reducing wait times and improving the overall customer service experience.

Strategic use of technology

In addition to the Temenos core system upgrade, East West Bank is integrating advanced technologies like AI and automation to streamline its operations. These technologies help reduce costs, improve efficiency, and ensure that the bank can quickly adapt to changes in the market.

"We’re leveraging AI to enhance our customer support and automate routine tasks," Sundaram explained. "This allows our team to focus on more complex issues and provides our customers with faster, more accurate service."

The use of AI is also helping the bank in fraud detection and risk management, ensuring that customer transactions are secure and compliant with regulatory requirements.

"By integrating with the regulator’s digital initiatives, we are not only modernising our systems but also contributing to the broader goal of financial inclusion in the Philippines," Sundaram said.

Future growth plans

Looking forward, East West Bank aims to expand its digital services and strengthen its position in the Philippine banking market. The bank is exploring new opportunities in areas like embedded banking and supply chain finance, which are expected to drive future growth. These initiatives are part of the bank’s broader strategy to diversify its product offerings and tap into emerging market segments.

"We’re building a foundation for long-term success," Sundaram concluded. "Our focus on modernising our systems and embracing digital innovation will help us achieve our goal of becoming a leading consumer bank in the Philippines."

The bank has built its data analytics capabilities to gain deeper insights into customer behaviour, allowing it to develop more targeted and effective financial products.

East West Bank’s investment in modernising its core systems is a key part of its strategy to enhance customer service and operational efficiency. With a focus on digital innovation, the bank is well-positioned to achieve its growth ambitions in the competitive Philippine banking sector. By embracing advanced technologies, East West Bank is not only improving its current operations but also setting the stage for future success.