PHL financial industry’s digitalization to boost market reach, revenues

BANKS AND INSURERS in the Philippines expect emerging technologies like artificial intelligence (AI) to help boost market penetration and their revenues, while also driving financial inclusion.

Bangko Sentral ng Pilipinas Managing Director Charina B. De Vera-Yap said on Tuesday that both banks and insurers need to work on reaching the underserved beyond account ownership and building resilience to protect families from unexpected shock.

Technology can be an enabler, but building consumer trust by ensuring that they are protected from various cyberthreats is critical, she said.

“Fraud can spread quickly. Misinformation circulates widely. Products may become more complex, and sometimes technology evolves faster than consumers can truly understand. So the challenge before us is not simply how to innovate. The real challenge is this: how do we ensure that innovation builds a system that is inclusive, resilient, and trusted? Because ultimately, trust is what makes financial systems sustainable,” she said in a speech at the Asian Banking & Finance and Insurance Asia Summit held on Tuesday.

Bank of the Philippine Islands (BPI) President and Chief Executive Officer Jose Teodoro K. Limcaoco, who is also president of the Bankers Association of the Philippines, said banks can expand their market penetration by offering different avenues for consumers to be part of the financial system.

“Financial inclusion is about allowing people to participate actively and progressively in the financial system, whether it’s through payment, whether it’s through transfers, making an investment, having access to cheap insurance or other financial services. And as financial services continue to evolve, so too must the role of banks to support this kind of everyday participation.”

For BPI, Mr. Limcaoco said the bank has expanded its physical and digital touchpoints through its agency and small and medium enterprise banking businesses, as well as its e-wallet Vybe.

As fraud and scam attempts remain more sophisticated and as consumers demand faster services, Globe Business Assistant Vice-President for Business Solutions Consulting Marlon Cruz said banks and insurers are shifting to real-time data processing to meet clients’ needs.

He said industry players are shifting to data streaming from processing information by the batch, which had the disadvantage of being outdated due to having waiting times.

“The waiting time is dead. From InstaPay to online shopping, our consumer wants instant. So, real-time data is making this happen,” Mr. Cruz said.

Insular Life Assurance Co., Ltd. Chief Product and Innovation Officer Jose Eduardo O. Ang likewise said the company is leveraging AI by using it to assist its agents or for chatbots for simpler transactions. — A.M.C. Sy