’ s also greater capability to communicate through long distances with a simple email or social media posting and to reduce dependency on physical offices to reach out to a wider customer base through mobile banking technology. this means that the information technology frontier just keeps on extending and extending and extending. your options on rural banking then become largely an issue of how you deliver banking products and services using the it choices you have made. the competitive landscape of the rural banking market has also seen major shifts in recent times. from what was then nearly the exclusive domain of rural banks, we have now seen universal and commercial banks venturing into the countryside, in part because of the phenomenon of technology. fundamental choices these are the broad strokes of change. sustained economic growth that is becoming reflected in the consumers ’ financial choices. greater market competition – from both within and without as we have become more open to foreign ownership of our banks. financial technology that is moving at the speed of light. where do all these changes leave the rural banking industry? as you embark on your visioning exercise, each one of your members must make the hard choices in terms of the “ scope ” and the “ scale ” of your operations. a rural bank ’ s fundamental strength is its familiarity with the grassroots, the community it serves. but as the market evolves, familiarity – even as it is an advantage – may not be sufficient to guarantee the operational viability of a rural bank. as the local community being served grows, so must the rural bank which is invested into that community. but, even as i say this, the causality must go both ways. for the local community to grow faster, the rural bank must also continue to be the stimulus for the community. this is at the very ideal of what rural banking should be in the philippines. there will always be a need for financial services and it is incumbent upon the rb to develop products and services that can address the requirements of its constituents. this is the issue of “ scope ” and this reflects the responsibility of banks to be portals of economic improvement. financial consumers are made better - off by banks because financial well - bis central bankers ’ speeches being is improved by banking products and services which then also translate to improvements in the community. then there is a question of “ scale ” so that the rural bank stands ready to grow – in size and core competencies – with the communities it serves. in the end, buzzwords like “ right sizing ” and “ streamlining ” need specific context.

it seems obvious that there is no universal standard – or “ magic number ” that is out there. what is clear though is that as you make your decisions on what you deem is the right size for you, you must continue to be guided by the bsp ’ s regulations on the appropriate governance structures and risk management frameworks. in the process of determining the scale and scope of your operations, it is my hope that you will be able to deliver the needed financial services to your clients at reasonable terms – just as it has been envisioned in the rural banks act. what the future brings rural banks must remember that you are yourselves stakeholders in the community. you are, in effect, a financial consumer – as an institution and as individuals – in the community that your bank also operates as a financial provider. as i close, i want to inform you that the bsp has spearheaded the formulation of a national strategy for financial inclusion, the national strategy for financial inclusion ( nsfi ). we are set to launch this in july this year. it ’ s a multi - sectoral endeavor that sets out the coherent framework on how all our efforts, those of the public sector and the private sector, can be closely and systematically coordinated to bring about financial inclusion that leads to broadbased and inclusive growth. rural banks are an integral part of that strategy. it is a great opportunity. i urge you to closely engage with us on this grand endeavor. friends, change is everywhere and perhaps none more so than in the present times. you talk of a “ new vision ” because we need to accept that there is a new normal in banking. it is still very much a business activity but one which is held to a very high social standard. this important qualification is necessary to protect the financial consumer from conflicts of interest, to instill corporate governance standards, to enforce global best practices for managing risks and ultimately, to sustain public trust. we have seen during the global crisis what a banking market becomes in jurisdictions where public trust becomes eroded. it would be an over - simplification to argue that their problems are unique and could not arise in asia or in the philippines. these problems have not manifested themselves here because we took early steps to prevent the build - up in risk and we continue to invest in a regulatory environment that nurtures your creativity as product providers while mitigating the ill effects of unwarranted risks. there is a need for “ one direction ” to strengthen commonality in purpose in addressing