From Pesos to Passwords - Empowering Philippines Digital Future: Day 2 AIBP C&E PH
The 48th edition of the ASEAN Innovation Business Platform (AIBP) Conference and Exhibition took place over 2 days in Manila, Philippines on 17 - 18 September 2024.
Through a series of insightful presentations and engaging panel discussions, participants delved into the opportunities and challenges associated with adopting these technologies. The focus was on practical solutions and real-world applications that can drive efficiency, growth, and innovation within enterprises in the Philippines.
On the first day, we looked at: (Read More Here)
The strategic adoption of data and artificial intelligence (AI) technologies
Building resilience in the future workforce amidst rapid technological change
Integrating sustainability into core business strategies for responsible growth
On the second day of the conference, industry leaders across multiple sectors shared their insights on three critical themes: the growing importance of cybersecurity, the role of phygital in financial services, and the digital skills and cultural change. As the Philippines continues its digital transformation journey, these discussions highlighted the need for a strategic approach to navigating the opportunities and risks associated with technological advancements.
Navigating Digital Risks in the Philippines
As healthcare and financial institutions in the Philippines handle increasingly sensitive data and critical operations, they face the dual challenge of innovating for efficiency while fortifying their defences against ever-evolving cyber threats. This delicate balance is reshaping how financial institutions and healthcare providers approach security, customer service, and operational efficiency.
Key takeaways from Security Bank Corporation, Asia United Bank (AUB) , RCBC and Metro Pacific Health include:
Banks are leveraging technologies like AI and biometrics to enhance security in digital services.
The healthcare sector faces unique challenges in balancing rapid digitalization with cybersecurity needs.
Finding the right balance between stringent security controls and operational efficiency is crucial across industries.
Adaptive security measures, powered by AI and behavioral analytics, are becoming increasingly important in managing evolving cyber risks.
The amount of security controls you will put is always going to be inversely proportional to efficiency. That’s where the balance comes in. It depends on the situation, it depends on the industry, and it depends what business you are in.
Albert Dela Cruz , Head of Enterprise Security Architecture, Security Bank
For external customers, we have face matching under e-wallet and online banking. When you do face matching, it's forefront detection, and also for anti money laundering purposes, because you get to know, if ever, a certain blacklist person is trying to apply or register for an app. With the face matching, you also can see whether there are securities around that. Like what Abet (Security Bank) said a while ago about fraud detection in our e-wallets or in our mobile banking and our customer facing systems, that's also part of fraud detection, and it's also part of eKYC and customer data.
Jed Kenley Chua ,Chief Information Security Officer, Asia United Bank
Digital Transformation in the Philippine Financial Sector: Challenges and Innovations
The next discussion focused on the critical role of artificial intelligence (AI) in modernising the Philippine financial sector. Specifically, key points included AI's impact on fraud detection, credit scoring, and risk assessment, enabling financial inclusion in rural areas. However, challenges such as legacy IT infrastructure, organisational silos, and talent shortages were highlighted, as they hinder the adoption of AI technologies. Metrics showed a significant increase in digital payments, with 52.8% of retail transactions now digital, up from just 1% in 2017. While AI and digital technologies offer immense potential for financial inclusion and improved services, challenges remain in infrastructure, cybersecurity, and digital literacy. Therefore, a balanced approach combining traditional banking with innovative digital solutions appears to be the way forward to ensure financial empowerment for all Filipinos.
Key highlights from RCBC , UnionBank of the Philippines and Cebuana Lhuillier Bank include :
Digital financial services are lacking in rural areas of the Philippines compared to urban centres. There is a need to build an ecosystem with both digital and physical services to facilitate transactions. Challenges remain in terms of reliable and affordable internet access, as well as cybersecurity concerns that impact trust in digital services.
There is a focus on creating social impact through digital financial services, especially in reaching geographically isolated communities.
Financial institutions are working on driving cultural change and educating customers on the benefits of digital financial services, including using alternative data for credit scoring.
Right now the focus will be on AI. Firstly, offering AI services in a more holistic way to our customers, so that we can simplify their lives with us and their lives may be complemented with other services that we can offer them. AI is also playing a role for our own internal operations. We can see that there is a large impact when we use AI for automation, better decision making, for example. So even just for process improvement, what maybe the customer does not feel directly, we have several initiatives on that side. The third one would be for fighting financial crimes. Because now we know, I mean by the young digital nation, the perpetrators will not shy away from using AI and whatever new technology, to be able to get their hands on the money. So we really need to make sure we also combat this and use the most advanced technology.
Dr. Adrienne Heinrich, AI and Innovation Center of Excellence Head, UnionBank of the Philippines
Embracing artificial intelligence is again no longer optional, but essential for survival and growth. AI means all in a promise to fully commit to AI driving innovation and transformation that will push our industry forward, you're either all in or out of the picture. Artificial intelligence is not just a password. It is a powerful force changing how financial institutions operate, serve and protect their customers. AI transforms how we detect fraud, underwrite loans and personalised financial services. It is a game changer for fraud detection. AI algorithms can analyse vast amounts of data in real and record time, identifying suspicious patterns and preventing fraudulent activities. AI is also a game changer in credit scoring and risk assessment, many Filipinos, particularly in rural areas, need formal credit histories, which limits fair access to financial services. But AI enables us to analyse alternative data, such as mobile phone usage or utility payments to assess an individual's credit worthiness better. This opens doors to financial services for millions of unpacked and underserved Filipinos who would otherwise be excluded from the formal financial system.
Lito Villanueva , Executive Vice President and Chief Innovation and Inclusion Officer, Rizal Commercial Banking Corporation (RCBC)
We've been introducing several products since its inception. When the bank came into the picture for the group, we actually launched one of our star products, Cebuana Lhuillier Micro Savings, it's actually a basic deposit account. As of today, we have close to about 9 million unbanked and underbanked Filipinos. We also introduced a lot of our initiatives on the digital side. We have our own app, and we have been educating our customers into the benefits of the QR. Cebuana Lhuillier Bank was one of the first institutions that was accredited as a QR merchant. Now we're looking at providing financial advice and services, and later on, how do we educate our customers?
Dennis Valdes , President, Cebuana Lhuillier Bank
Driving Digital Skills for Growth and Innovation in the Philippines
The final discussion emphasised the need for digital skills and cultural change as important factors in driving digital transformation and innovation in the Philippines. Key points included the role of the government in supporting digital development, with initiatives like the Digital Innovation for Women Advancement. The Philippines is actively participating in international forums and developing frameworks to balance innovation and regulation. The conversation highlighted the integration of AI and emerging technologies in various sectors, the skills gap, and the need for upskilling through various efforts:
Policy, strategy and upskilling are all underlined by culture and mindset: Key areas of focus for digital inclusion include women, youth, senior citizens, disabled individuals, and online freelancers.
Upskilling and Hybridisation of Skills: Developing digital skills, including AI competencies. Technical working groups are formed with government agencies like the Department of Trade and Industry (DTI) and the Department of Science and Technology (DOST) to coordinate efforts.
Data-Driven Decision-Making: Implement policies based on data to address evolving skill requirements and ensure effective coordination across organisations.
Educational Reform: Disrupt education systems to better prepare graduates for the digital age, supporting readiness through apprenticeships and internships.
Manufacturing companies are racing to transform their plants into smart facilities using technologies like IoT and Industry 4.0. The industry is moving from manual tasks to a focus on analytical skills and technology use. Expectations of employee skill sets are also shifting, with even entry-level roles now requiring the ability to operate and troubleshoot advanced machinery.
Lawrence Co, Learning and People Development Head, Monde Nissin Corporation
Digital competence should be integrated across all disciplines, and I would like to draw focus to three key areas. Number one would be domain skills where specialised expertise is essential. General skills are no longer sufficient; expertise in areas like AI or blockchain is needed. Second would be analytical skills - critical thinking and problem-solving are crucial. We must invest in teaching these skills from an early age. Communication Skills: Effective communication, including speaking, reading, and listening, remains vital despite digital advancements. You can have digital competence in domain skills, digital competency analytics, digital competency communication, but skills in these top three communications is very important
Atty. Jocelle Batapa-Sigue, Undersecretary for Information and Communications Technology Industry Development, Department of Information and Communications Technology - Philippines (DICT)
As the Philippines continues its digital journey, collaborative efforts between the public and private sectors will be crucial in navigating the opportunities and risks of technological advancements, ensuring sustainable growth and financial empowerment for all Filipinos.
If you’re interested in continuing the conversations, stay tuned to a series of working groups happening in October and November. You may reach out to us at aibp@industry-platform.com
You can also read the takeaways from the
45th Edition, AIBP C&E Thailand - Day 1 | Day 2
