 
Author: Christopher Paniagua, CEO, Banco Popular Dominican
Since its founding in the mid-1960s, Banco Popular Dominico has been at the forefront of the democratization of financial services in the Dominican Republic – a country of more than 11 million people and one of the fastest growing economies. fastest in Latin America and the Caribbean. The bank is now at the forefront of the digital transformation of the country’s banking sector, with a growing offering of digital products and applications. Banco Popular can attribute its longevity and success to a strategy that includes continuous innovation, financial strength and a customer-centric approach.
While the bank can boast of many achievements over its 60-year history, the one it is most proud of recently is the issuance of its first green bond. It is also the first issuance of this type by a 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 the use of clean energy and energy efficiency.
Pioneer of green bonds
The issuance of the green bond was an important milestone for Banco Popular and for the Dominican financial sector as a whole. This financial instrument allowed the bank to direct funds towards sustainable projects, including the promotion of renewable energy, energy efficiency and other initiatives helping to reduce environmental impact. For Banco Popular, this move not only reinforces 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 was worth RD$300 million (around $5 million at current exchange rates), out of a total of RD$2.5 billion ($42 million) approved. It will be entirely allocated to institutional investors, notably pension fund administrators AFP Popular, Crecer, Siembra and Reservas.
The issuance of the green bond was an important step for Banco Popular
Additionally, green bonds are just one aspect of Banco Popular’s sustainability strategy, which is integrated into every facet of its operations. The green bond complements the bank’s portfolio of environmentally friendly financial products, such as loans for electric vehicles and for the installation of solar panels, reflecting the bank’s commitment to promoting responsible and sustainable practices with its customers and throughout the country. The bank targets not only economic growth – the IMF projects real GDP growth of 5.4% for the Dominican Republic in 2024 – but also the generation of positive environmental outcomes and social impact.
Digital innovation
Banco Popular Dominico, part of Grupo Popular, has also been a pioneer in the introduction and integration of digital payment technologies in the Dominican Republic. Through its collaborations with Apple Pay and Google Pay, the bank offers its customers the ability to make contactless transactions quickly and securely. This integration facilitates the use of debit and credit cards on mobile devices, providing greater convenience to users and supporting the transition to a digital economy.
And to celebrate its 60th anniversary, Banco Popular has introduced a revamped digital ecosystem, with four new specialist mobile apps on offer. These four applications are: Comerza for micro-enterprises, Gnial for young people, Yavá for remittance management and Biz for businesses. Additionally, App Popular, the bank’s flagship mobile application, has been redesigned to provide a more intuitive user experience. This family of applications aims to optimize financial management for different segments of the population, promote financial inclusion and improve user experience. All apps are available for iPhone and Android users.
Experience has shown that our customers are keen to adopt digital products and applications, although there are clearly opportunities for expansion. Currently, around 25 percent of all Banco Popular financial products are obtained digitally, and this percentage rises to 50 percent for credit card activations.
Additionally, 40% of complaints are now submitted through the bank’s multiple applications, each designed for different banking segments. The popular app alone averages over 1 million users, who can access more than 50 self-service features, including third-party payments, transfers between accounts and credit card payments and on loans.
Looking to the future, Banco Popular is focused on personalizing its digital services through the use of artificial intelligence and application optimization. All of our applications are designed to continually evolve based on user needs. For example, we envisage that the Gnial application aimed at young people will integrate new features based on customer behavior. 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 part of the population. The Dominican Republic still has progress to make in this area; according to World Bank data, only 51% of adults in the country had a bank account in 2021.
Investing in cybersecurity
Amid growing cyber threats around the world, Banco Popular has implemented a comprehensive cybersecurity approach, investing in advanced technologies such as multi-factor authentication systems, proactive monitoring and real-time threat detection. These measures aim to safeguard the integrity of transactions and 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 technology infrastructure, operated by its Security Operations Center (SOC) and Network Operations Center (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 cybersecurity is no exception. The bank has therefore launched extensive awareness campaigns on topics related to cybersecurity, 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 our customers better protect themselves, as well as periodic recommendations on strengthening their digital defenses.
An example of this is the “Pistas de Seguridad” (Safety Tips) initiative, where Banco Popular shares tips and recommendations on digital awareness through its website, social media and mail electronically to its customers. The bank 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 SMEs with bad practices, as well as the potential repercussions of their mistakes.
Supporting young people
Banco Popular strongly believes in supporting the youth of the Dominican Republic and has implemented a number of policies and programs to achieve this. Going forward, the bank will continue to support this vital segment of the population (people aged 10 to 24 currently make up just over a quarter of the Dominican population, according to the United Nations Population Fund), by innovating and developing tools that support the projects and dreams of young people.
Banco Popular firmly believes in supporting the youth of the Dominican Republic
As mentioned, the bank launched the Gnial app, an innovative platform aimed at young people from generations Z (those born between the mid-1990s and around 2010) and Alpha (those born from around 2010). Among other things, this app allows users to set savings goals, make quick transfers using a phone number, and withdraw money through a temporary code system called Código Cash. Gnial also provides access to promotions and exclusive benefits for young people. The Jóvenes Popular Account completes this offer, promoting the advantages of saving from an early age. These solutions have been very well received, as thousands of young people have joined the bank’s digital financial ecosystem, helping to advance the financial inclusion of young people in the country.
The bank has meanwhile proven itself in supporting the education of young people. The popular Becas Excelencia program currently has more than 326 active members and 312 graduates, consolidating its position as the most comprehensive scholarship program in the Dominican financial sector. This program covers the cost of university studies in recognized establishments in the country. In addition to financial support, the program offers training in soft skills and professional development as well as topics related to personal finance, preparing young people to face the challenges of the job market. Over the past decade, more than RD$200 million ($3.3 million) has been allocated to develop this initiative, which promotes high-quality education and opens meaningful employment opportunities for young people.
This initiative not only contributes to the personal development and success of each student involved, but also has a positive impact on the economy of the Dominican Republic as a whole. By producing qualified professionals, the program promotes the development of local talent and stimulates competitiveness in the country’s key economic sectors.