Philippine National Bank (PNB) has completed a core banking modernization initiative with IBM aimed at strengthening operational resilience, improving system performance, and supporting long-term sustainability.

The bank said the project was delivered in collaboration with BizTech consulting firm CROZ, an IBM Business Partner, and led by IBM Expert Labs.

“Ensuring the reliability and resiliency of the bank’s operations is central to PNB’s commitment to enhancing the customer experience as market expectations and regulatory requirements evolve. PNB’s 27 years of partnership with IBM and collaboration with CROZ are critical to addressing that imperative while enabling continuous innovation across our business products, services, and processes,” said Constantino Yap, senior vice president and group head for Digital Channel Management and Innovation at PNB.

Under the two-year initiative, PNB upgraded its core banking system from IBM z/VSE on z14 to the IBM z/OS platform on IBM z16, while implementing IBM Resource Access Control Facility (RACF) to strengthen mainframe security and system controls.

The upgrade to IBM z/OS on IBM z16 enabled PNB to improve transaction processing speed, strengthen cybersecurity controls, and enhance the reliability of its core banking operations, while IBM RACF reinforced system access controls, anti-money laundering oversight, and protection against unauthorized access and operational risks.

The modernization also improved the bank’s ability to support higher transaction volumes, maintain operational continuity, and integrate more efficiently with evolving digital banking services. Since the system went live, PNB said production slowdown incidents were eliminated, falling from twice per month to zero.

The bank also reduced nightly end-of-day pre-processing validation time from five hours to two hours, while batch processing time dropped by nearly 75 percent, from 13 hours to three hours.

PNB said the improvements enabled business processes to run more efficiently while allowing information technology teams to focus on other critical tasks instead of late-night monitoring and troubleshooting.

The modernization was implemented in phases through collaboration among IBM, CROZ, and PNB’s internal teams to minimize operational risks and ensure continuity of the bank’s core banking system.

“Financial institutions across the Philippines face the imperative to modernize mission-critical infrastructure while maintaining the stability and security their customers depend on. This collaboration with PNB and CROZ demonstrates how IBM is helping BFSIs strengthen operational resilience while building a foundation for future innovation,” said Leo Capinpin, country general manager and technology leader at IBM Philippines.