BNCTL upgrades to boost financial services

Banco Nacional de Comércio de Timor-Leste (BNCTL), one of Timor-Leste’s leading financial institutions, is undertaking a significant technological transformation to enhance its service offerings and support the country’s economic growth. Under the leadership of chairman and CEO Antonio Vitor, the bank is upgrading its core systems with the latest version of Temenos’ Inclusive Banking Suite. This upgrade is critical for improving operational efficiency, expanding digital services, and ensuring that financial services reach all segments of the population.

BNCTL in 2011 transformed from the Institute of Microfinance (IMfTL) and was established as a state-owned commercial bank with a mission to provide financial services to the underserved and rural communities of Timor-Leste. Since its inception, BNCTL has played a crucial role in the development of the country’s financial sector, particularly in promoting financial inclusion and supporting small and medium-sized enterprises (SMEs).

Over the years, BNCTL has expanded its operations and introduced various financial products and services tailored to the needs of the local population. The bank's focus on rural banking and its commitment to financial inclusion have earned it a reputation as a key driver of economic development in Timor-Leste.

Expanding financial inclusion

BNCTL’s mission has always been to provide banking services to underserved communities in Timor-Leste. With the new system in place, the bank is now able to offer a wider range of services, including mobile banking and agent banking, which are particularly beneficial in remote areas where access to traditional banking services is limited.

"We’ve always been committed to reaching the underserved," Vitor explained. "The new technology allows us to expand our reach and offer more convenient banking options to people who might not have access to traditional bank branches."

The bank’s efforts to promote financial inclusion are also supported by its partnerships with local organisations, which help in educating the public about the benefits of banking and financial literacy.

Technology-driven growth

The adoption of the Temenos system has also enabled BNCTL to achieve significant growth in its assets, which have increased from $20 million to over $800 million. This growth is a testament to the bank’s ability to leverage technology to enhance its operations and serve its customers more effectively.

"With the new system, we’ve seen remarkable growth in our assets," Vitor noted. "This wouldn’t have been possible without the technological upgrades we’ve implemented."

The system's capabilities allow BNCTL to process transactions more efficiently, reduce operational costs, and improve the accuracy of financial reporting, which is essential for maintaining regulatory compliance.

Challenges and solutions

Despite the benefits, the transition to the new system has not been without challenges. BNCTL has faced difficulties in migrating data and training staff to use the new technology. However, the bank has worked closely with its technology partners to address these issues and ensure a smooth transition.

"Change is always challenging, especially when it involves technology," Vitor acknowledged. "But with the right support, we’ve been able to overcome these obstacles and make the most of our new system."

The bank has also implemented a comprehensive training programme to ensure that all staff members are proficient in using the new system, which is critical for maintaining high levels of service.

The Banco Central de Timor-Leste (BCTL) has been instrumental in supporting the growth and development of the country's financial sector. BCTL’s regulatory framework has encouraged the adoption of digital banking solutions and has provided the necessary guidelines to ensure that banks operate securely and efficiently. BNCTL’s alignment with BCTL’s initiatives, such as the promotion of mobile banking and electronic payment systems, has been crucial in its transformation journey.

"Working closely with the central bank has allowed us to stay ahead of regulatory changes and ensure that our new systems are fully compliant," Vitor said. "This partnership has been key to our success."

Strategic goals for the future

Looking ahead, BNCTL aims to continue its growth by further expanding its digital services and exploring new opportunities in remittance-based lending. The bank is also focused on serving the Timorese diaspora, particularly those working abroad, by offering convenient and cost-effective remittance services.

"Our vision is to be the leading bank in Timor-Leste, not just in terms of size, but in the quality of service we provide," Vitor concluded. "Technology is the key to achieving that vision and ensuring that we can continue to grow and serve our customers."

The bank is also focused on serving the Timorese diaspora, particularly those working abroad, by offering convenient and cost-effective remittance services.

"Our vision is to be the leading bank in Timor-Leste, not just in terms of size, but in the quality of service we provide," Vitor concluded. "Technology is the key to achieving that vision and ensuring that we can continue to grow and serve our customers."

The bank is also exploring the potential of blockchain technology to enhance the security and transparency of its transactions, which is expected to further strengthen customer trust.

BNCTL’s technological transformation is a pivotal step in its journey to enhance financial inclusion and drive economic growth in Timor-Leste. With the latest system upgrades, the bank is well-equipped to achieve its strategic goals and provide better services to its customers. The bank’s commitment to innovation and customer service positions it as a leader in the Timorese financial sector.

Connect with senior banking decision-makers and industry practitioners at Finance Indonesia on 12 September 2024. This year’s theme, Innovation and regulatory excellence: Charting our future in banking, will explore the key trends shaping the industry. For more information, visit: https://theasianbanker.com/finance-indonesia-2024/