 
Author: Christopher Paniagua, CEO, Banco Popular Dominicano
Since its establishment in the mid-1960s, Banco Popular Dominicano has been at the forefront of democratising financial services in the Dominican Republic – a country of over 11 million people and one of the fastest-growing economies in Latin America and the Caribbean. The bank is meanwhile at the leading edge of the digital transformation of the country’s banking sector, with a growing range of digital products and applications on offer. Banco Popular can attribute its longevity and success to a strategy that includes continuous innovation, financial robustness and a customer-centric approach.
While the bank can point to a host of achievements during its 60-year history, the one of which it is most proud in recent times is the issuance of its first green bond. This is also the first such issue by any financial company in the Dominican Republic. The 10-year fixed-rate bond, issued in May 2024, aligns with the bank’s sustainability strategy, allowing it to finance projects that promote clean energy use and energy efficiency.
Green bond pioneer
The issuance of the green bond was a significant milestone for Banco Popular and for the Dominican financial sector more widely. This financial instrument has enabled the bank to direct funds towards sustainable projects, including the promotion of renewable energy, energy efficiency, and other initiatives that help reduce environmental impact. For Banco Popular, this move not only strengthens its commitment to sustainability, but also paves the way for a greener and more resilient economy in the Dominican Republic. The first tranche of the green bond amounted to RD$300m (around $5m at current exchange rates), out of a total of RD$2.5bn ($42m) approved. It will be entirely allocated to institutional investors, specifically to the pension fund administrators AFP Popular, Crecer, Siembra and Reservas.
The issuance of the green bond was a significant milestone for Banco Popular
Moreover, the green bond is only one aspect of the Banco Popular’s sustainability strategy, which is integrated into all facets of its operations. The green bond complements the bank’s portfolio of eco-friendly financial products, such as loans for electric vehicles and for solar panel installation, reflecting the bank’s commitment to promoting responsible and sustainable practices among its customers and throughout the country. The bank aims not only for economic growth – the IMF forecasts real GDP growth of 5.4 percent for the Dominican Republic in 2024 – but also to generate positive environmental outcomes and social impact.
Digital innovation
Banco Popular Dominicano, part of Grupo Popular, has also been a pioneer in introducing and incorporating digital payment technologies in the Dominican Republic. Through its collaborations with Apple Pay and Google Pay, the bank offers its customers the ability to conduct contactless transactions quickly and securely. This integration facilitates the use of debit and credit cards on mobile devices, providing greater convenience for users and supporting the transition to a digitised economy.
And in celebration of its 60th anniversary, Banco Popular has introduced a revamped digital ecosystem, with four new specialised mobile applications on offer. These four apps are: Comerza for micro-enterprises, Gnial for young people, Yavá for remittance management and Biz for corporate clients. Additionally, the App Popular, the bank’s flagship mobile app, has been redesigned to provide a more intuitive user experience. This family of apps aims to optimise financial management for different segments of the population, promote financial inclusion and enhance the user experience. All apps are available for both iPhone and Android users.
Experience has shown that our customers are keen to take up digital products and applications, although there is clearly scope for further expansion. At present, around 25 percent of all Banco Popular’s financial products are obtained digitally, and this percentage rises upwards to 50 percent for credit card activations.
Furthermore, 40 percent of claims are now submitted through the bank’s multiple apps, each designed for different banking segments. The Popular App alone has an average of over one million users, who can access more than 50 self-service features including third-party payments, transfers between accounts, and credit card and loan payments.
Looking to the future, Banco Popular is focused on personalising its digital services through the use of artificial intelligence and app optimisation. All our apps are designed to continuously evolve based on user needs. For example, we intend that the Gnial app for young people will include new functionalities based on client behaviour. The bank is also exploring new fintech solutions and developing platforms that promote financial inclusion through tools that will make banking easier and more accessible to a larger share of the population. The Dominican Republic still has some scope to improve in this area; according to data from the World Bank, only 51 percent of adults in the country had a bank account in 2021.
Investing in cybersecurity
Against a background of growing cyber threats worldwide, Banco Popular has implemented a comprehensive cybersecurity approach, investing in advanced technologies such as multifactor authentication systems, proactive monitoring, and real-time threat detection. These measures are designed to safeguard the integrity of transactions and the sensitive information of the bank’s customers. Additionally, the bank has adopted international security standards, ensuring a safe environment for all digital operations.
For example, it has an advanced monitoring system contained within its technological infrastructure, operated by its Security Operations Centre (SOC) and its Network Operations Centre (NOC). Both units monitor more than 30,000 events per second, ensuring constant protection of the bank’s systems and the digital integrity of its customers.
Customer education is a priority for Banco Popular, and the area of cyber security is no exception. Hence the bank has launched wide-ranging awareness campaigns on cybersecurity topics, using digital channels as well as traditional media to educate users about the risks of fraud, phishing and other cybercrimes. We also offer a range of online resources to help customers better protect themselves, along with periodic recommendations on strengthening their digital defences.
As an example of this, there is the ‘Pistas de Seguridad’ (security tips) initiative whereby Banco Popular shares tips and recommendations on digital awareness through its website, social media and email to its customer base. The bank has also created the educational podcast ‘Red Alert: We’ve Been Hacked!’ aimed at small and medium-sized businesses. The podcast presents imaginary scenarios of cyberattacks on different types of SME with poor practices, along with the potential repercussions of their mistakes.
Supporting young people
Banco Popular believes very strongly in supporting the young people of the Dominican Republic and has put in place a number of policies and programmes to achieve this. Going forward, the bank will continue to stand by this vital segment of the population (with those aged between 10 and 24 currently making up just over one-quarter of the Dominican population, according to the United Nations Population Fund), innovating and developing tools that support young people’s projects and dreams.
Banco Popular believes very strongly in supporting the young people of the Dominican Republic
As mentioned, the bank has launched the Gnial app, an innovative platform aimed at young people from Generations Z (those born from the mid-1990s to around 2010) and Alpha (those born from around 2010 onwards). Among other things, this app allows users to set savings goals, make quick transfers using a phone number, and withdraw cash through a temporary code system known as Código Cash. Gnial also provides access to promotions and exclusive benefits for the younger age group. The Jóvenes Popular Account complements this offering, promoting the benefits of saving from an early age. These solutions have been very well received, with thousands of young people integrating into the bank’s digital financial ecosystem, and so helping to drive forward youth financial inclusion in the country.
The bank meanwhile has a proven track record of support for youth education. The Becas Excelencia Popular Programme currently has more than 326 active members and 312 graduates, solidifying its position as the most comprehensive scholarship programme in the Dominican financial sector. This programme covers the cost of university education at recognised institutions in the country. In addition to financial support, the programme provides training in soft skills and professional development and also subjects that are related to personal finance, preparing young people to face the challenges of the job market. Over the last decade, over RD$200m ($3.3m) has been allocated to the development of this initiative, which promotes high-quality education and opens up meaningful employment opportunities for young people.
This initiative not only contributes to the personal development and success of the individual students involved, but also has a positive impact on the economy of the Dominican Republic as a whole. By producing skilled professionals, the programme fosters the development of local talent and boosts competitiveness in the country’s key economic sectors.
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Publish date : 2024-12-19 21:01:00
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