Philippine National Bank (PNB) reduced its core banking batch processing time by nearly 75% after modernizing its banking infrastructure with technology company IBM and consulting firm CROZ.
The two-year modernization project upgraded PNB’s core banking system from IBM z/VSE on z14 to the newer IBM z/OS platform running on IBM z16. The bank also implemented IBM Resource Access Control Facility (RACF) to strengthen security controls and improve system resilience.
“Ensuring the reliability and resiliency of the bank’s operations is central to PNB’s commitment to enhancing the customer experience as market expectation and regulatory requirements evolve,” said Constantino Yap, SVP and group head for Digital Channel Management and Innovation, PNB.
The project was led by IBM Expert Labs in collaboration with CROZ, an IBM Business Partner, and PNB’s internal technology teams.
The modernization comes as banks face increasing pressure to maintain reliable and secure digital services while meeting stricter regulatory requirements from the Bangko Sentral ng Pilipinas (BSP). Core banking systems handle critical functions such as deposits, payments, and transaction processing, making system uptime and stability essential for daily banking operations.
According to PNB, the upgrade eliminated production slowdowns that previously happened twice a month. The bank also reduced nightly end-of-day pre-processing validation time from five hours to two hours.
Batch processing time dropped from 13 hours to just three hours, allowing business operations to run faster and reducing the need for overnight monitoring and troubleshooting by IT teams.
“Financial institutions across the Philippines face the imperative to modernize mission-critical infrastructure while maintaining the stability and security their customers depend on,” Leo Capinpin, country general manager and Technology Leader, IBM Philippines, said. “This collaboration with PNB and CROZ demonstrates how IBM is helping BFSIs strengthen operational resilience while building a foundation for future innovation.”
PNB said the project was rolled out in phases to minimize operational risks and avoid disruption to banking services. The initiative also included knowledge transfer and technical training to help the bank’s teams independently manage and further develop the new environment.
“Aside from modernizing PNB’s core infrastructure, the IBM-CROZ team shared their z/OS knowledge and assisted the Bank’s z/VSE mainframe technical support personnel,” said Michael Morallos, FSVP and Group head for Information Technology, PNB, and Cesar Buhay, project director, PNB.