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Future of banking unfolds with AI, blockchain
Artificial intelligence, or AI, is increasingly forcing traditional banks to become more digital for compelling reasons. Experiments with this technology show banks ways to speed up their product design, widen customer access to loans, and build an organized and secure record of financial transactions. “My perspective is that the future of banking is digital banks. With AI, traditional banks are saying, I’m going to provide a service through someone else, and you see suddenly that you have this almost Rubik’s cube of possibilities,” David Hardoon, group chief data officer of Union Bank of the Philippines and chief executive officer of Aboitiz Data Innovation, said. [caption id="attachment_161492" align="aligncenter" width="1440"] David Hardoon, group chief data officer of Union Bank of the Philippines and chief executive officer of Aboitiz Data Innovation.[/caption] Both operate under the Aboitiz Group, which aims to be the first tech conglomerate in the Philippines. AI helps humans analyze data by categorizing information, stitching related data, and automatically detecting unusual patterns or activities logged in computer devices. “It’s the capability to distill from complex information,” Hardoon said. For example, he said the Union Bank team could quickly gauge its performance by looking at the AI-processed analysis of customer feedback they sent through email or chatbots. “Just beyond calculating the number of happy and unhappy individuals, it helps us understand what is happening. When we listen to the customer, we can say if we need to create a new product or service that we weren’t aware of or adjust an existing product.” Hardoon said the products or services include the company website, which some customers might need help to navigate initially. “We realized that some issues are related to information on the website. The way we designed it isn’t the best. Okay, we change it. And that’s how we use that feedback continuously, across all channels.” Hardoon said all managers could be updated on any bank problems through AI as the technology pools information into a single system. “But there’s also been a few other emails that have come in with other offices, which I may not be aware of unless I’ve had an in-person conversation with the team. This tool runs continuously in the background and can identify my teammate and say, David, this may be coming up.” AI coupled with blockchain also allows the bank to reach more customers who lack traditional bank accounts but have incomes and can repay loans. Blockchain is an online data storage that links various data types and identifies their sources. In this way, individuals can build proof of financial capacity to avail of loans. Hardoon explained that this technology mix could provide loans to small business owners, such as sellers on Facebook, to ensure they have enough working capital or funds to expand their operations. “The blockchain layer can provide me with that authenticated aspect, saying it comes from Facebook, not some spoofed website. Or if you’re working with another vendor providing you with product ingredients. That now becomes another block in the chain.” With analysis and data traceability features of AI and blockchain, Hardoon said bank managers could also reduce losses from clients as the technologies guide them in adjusting their terms for new loans based on their credit and payment histories. “They can help calculate risks. For example, I will give you P10,000 and see how you respond. Respond. When I see it’s good, or the client paid, I can give P100,000 next time. We need to remember that it’s always this learning process because, fundamentally, the principle of risk is the same.” With these benefits, Hardoon said digital banks will likely become an easy option for Filipinos to fulfill their financial needs. “So it’s completely different to a certain extent from the traditional. Now you have AI and blockchain to incorporate as a new capability. The digital bank, in principle, can simply plug and play.” The post Future of banking unfolds with AI, blockchain appeared first on Daily Tribune......»»
Marcos wants more widespread cashless transactions
President Ferdinand Marcos Jr. has taken steps to increase public knowledge about cashless transactions as part of his campaign to fully digitize the country, Malacañang said on Friday. Marcos made the statement through the Presidential Communications Office as he expressed support for Paleng-QR Ph, an initiative that aims to promote the widespread adoption of digital payments in markets and tricycle hubs through using online applications. According to Communications Secretary Cheloy Garafil, the Paleng-QR Ph program was a topic of discussion during President Marcos' meeting with the members of the Digital Infrastructure Cluster of the Private Sector Advisory Council at Malacañang Palace in Manila earlier this week. “President Ferdinand R. Marcos Jr. fully supports the Paleng-QR Ph Plus Initiative and wants government agencies to educate Filipinos on the use of e-wallet and other digital payment apps to prop up economic activities, particularly with the inclusion of micro, small and medium enterprises (MSMEs),” Garafil said. The QR Ph initiative, developed by the Bangko Sentral ng Pilipinas and the payments industry, aims to establish a standardized national quick response code for digital payments. Launched in 2022, this digital program primarily focuses on engaging merchants, business owners, and various forms of local transportation. PSAC Convenor Sabin Aboitiz, President & CEO of the Aboitiz Equity Ventures Inc., was also present during the meeting along with Union Digital President and CEO Henry Rhoel Aguda, Bank of the Philippines Islands COO Ramon Jocson and PLDT Inc. President and CEO Alfredo Panlilio. PSAC Member Ernest Cu, President and CEO of Globe Telecom, described the use of quick response codes and other digital payment apps as something like a “home run” for the government, saying that they are excited to start serving the public markets using QR codes. “We have to do it. It’s a grassroots-level approach. There are also videos on YouTube and we also have Tiktok to get people to educate themselves. And if you use the app regularly, you will see it being offered to you on the app,” Cu said, noting the country’s very high technology adoption rate. BSP Governor Felipe Medalla expressed support to the project saying, “Mr. President, this one has a big impact on financial inclusion because the problem is there’s no way for banks to assess their credit scores, but if we have a digital database with their payment habits, that will be a substitute and a good proxy for credit scoring. This actually helps in the financial inclusion advocacy of the BSP and the government.” The post Marcos wants more widespread cashless transactions appeared first on Daily Tribune......»»
Virtual bank plans SME loans, investments
GoTyme, the fully digital bank arm of the Gokongwei Group, plans to offer investments and consumer and small and medium enterprises loans this year, as it helps the government encourage more Filipinos to own bank accounts. “By the end of the year, we’ll enter into micro-investments, as well as lending,” Nathaniel Clarke, GoTyme’s president and chief executive officer, said during the recent AI Summit 2023. The forum was organized by Aboitiz Data Innovation and Union Bank of the Philippines to exchange insights on the uses, dangers and future of artificial intelligence. The Bangko Sentral ng Pilipinas already approved six digital banks to operate in the country. However, McKinsey & Company recently said most of their services are “almost exclusively on payments and dominant players have yet to emerge outside the mobile-payments subsector.” Huge opportunities remain Clarke said the Philippines still has a big pool of borrowers to reach, but stressed GoTyme needs to collect data on consumers first to ensure sustainable lending service. “South Africa’s fifth largest bank is bigger than the entire Philippine banking system. So, there are still so many people to tap as the population is double here.” He added, “We’re going to that lending opportunity, but we want to do it responsibly for people who can afford loans. We need to build up a database and customer relationship.” Clarke said GoTyme aims to offer small loans initially this year to entrepreneurs, which might include sellers on social media platforms and other marketplaces for owners of small and medium enterprises. “We’re talking to a lot of small business aggregators. There are large digital players touching many small and medium enterprises.” Clarke said bigger loan amounts will be available in partnership with other banks. Currently, GoTyme offers savings and deposit accounts, e-payments and rewards for purchases from partner merchants, such as Cebu Pacific. BSP aims to increase the population of banked Filipinos to 70 percent this year from 56 percent last year. The post Virtual bank plans SME loans, investments appeared first on Daily Tribune......»»
Data dearth flattens market
The absence of a growth catalyst dragged the benchmark Philippine Stock Exchange index down on Wednesday, with shares dropping by 18.37 points to 6,446.35, 0.28 percent lower than Wednesday’s close. In a text message, Philstocks Financial Inc. assistant manager for research and online engagement Claire Alviar said negative sentiments reigned yesterday due to a “lack of strong catalyst to spur optimism while the weakening of the peso is weighing on sentiment.” “Moreover, investors also waited for the first quarter earnings results of companies,” she said. Notably, the net market value turnover also remained weak, registered at P3.2 billion. The stock market is in for a bumpy ride as investors digested the latest round of earnings, both local and globally with the S&P500 ticking up higher by 0.09 percent, while the Dow Jones Industrial Average slipping by 0.03 percent, Regina Capital Development Corp. managing director Luis Limlingan said. Moreover, investors also waited for the first quarter earnings results of companies. BDO Q1 profit: P16.5B Just before the market closed yesterday, Banco de Oro reported a first quarter net income of P16.5 billion, ahead of RCDC’s earnings forecast. Oil prices were little changed as upbeat economic data in China offset concerns that possible increases in US interest rates could dampen growth in the top consuming country. Banks were the only market gainers, up by 0.45 percent, while all other sectors declined this session, with the Miners having the biggest loss of 1.41 percent. Meanwhile, Jollibee Foods Corporation gained the most by 1.29 percent while Aboitiz Equity Ventures Inc. was at the bottom, losing 2.61 percent. The post Data dearth flattens market appeared first on Daily Tribune......»»
Banks urged: Shift backing for RE
Philippine banks must quickly shift project funding for fossil fuels to renewable energy as demand for the latter is seen to skyrocket due to shrinking supplies and rising prices for climate change-inducing fossil fuels, said a report released Tuesday by the Center for Energy, Ecology and Development Philippines. Citing data from the United Nations Intergovernmental Panel on Climate Change, a CEED report says unit costs for renewables have been decreasing at substantial rates globally: 85 percent both for solar energy and lithium-ion batteries and 55 percent for wind energy. Meanwhile, fossil fuel prices for coal and natural gas could further increase due to ongoing armed conflict between oil-rich countries Russia and Ukraine. Meralco, the country’s largest electricity provider, has increased rates to over P10 per kilowatt hour, while 11 new import terminals for liquified natural gas are under negotiations, according to the Department of Energy. Despite these, CEED researchers found 15 Philippine banks have heavily invested in fossil fuel projects through bonds, loans and stocks. Researchers say these will further heat up the planet and harm aquatic resources as the Verde Island Passage is eyed as an alternative to Malampaya. Dirtiest banks Banks were analyzed through CEED’s Fossil Fuel Divestment Scorecard which looked at their green policies and projects to mitigate the impacts of climate change such as drought, floods, and wildfires. New data covered April 2022 to March 2023. The scorecard shows Philippine banks invested $867.08 million within that period, mostly through bonds. Meanwhile, investments for new fossil gas projects reached $930 million. Among them involved the project of SMC Global Power of San Miguel Corporation in Bataan and Batangas which required principal funding of P30 billion and bond oversubscription option up to P10 billion in July last year. Eight out of the 15 banks studied supported this project. However, CEED shared that the SMC energy firm lost P15 billion last year due to higher fossil fuel prices. CEED added that the firm scrapped its application for the three proposed fossil gas projects in Visayas last year. Among the 15 banks, Bank of the Philippines Islands (BPI) was deemed the dirtiest bank, followed by BDO Unibank Inc. CEED researchers say BPI topped the list for the fourth time, with an unclear commitment to reduce coal projects, notably the Atimonan One Energy (A1E) Coal Plant. “In fact, in a letter addressed to CEED dated 1 July 2021, the DOE said that Meralco PowerGen Corporation, which wholly owns A1E, is still in communication with lenders to extend the loan facility given the challenges encountered in securing power supply agreements.” In general, BPI had vowed to reduce outstanding loans to coal projects by 50 percent by 2026 and zero percent by 2032. Meanwhile, BDO had announced to reduce coal exposure also by 50 percent by 2033. CEED, however, criticized the banks for not having detailed plans to achieve their goals. “BPI’s overall score is also slightly higher due to improved sustainability policies. Nonetheless, BPI’s high overall fossil fuel exposure and insufficient policies keep it at the top,” CEED researchers said. For BDO, “Its coal exposure remains significant and its place as the top financier of the fossil gas expansion also garners it a high score. Its rank is lowered, however, by its Sustainability Policies Criteria score,” it said. Model banks Government-owned Land Bank of the Philippines (LandBank) and Development Bank of the Philippines (DBP) are the cleanest banks. CEED said that LandBank approved loans amounting to P20.1 billion for renewables. It added that the bank agreed in January to help build Aboitiz renewable energy plants worth P20 billion. Meanwhile, DBP approved a total loan of P600 million for a hydropower plant in Nueva Ecija and other 27 renewable energy projects last year. The post Banks urged: Shift backing for RE appeared first on Daily Tribune......»»
SN Aboitiz-Benguet raises P18b from two banks to refinance debt
SN Aboitiz Power-Benguet Inc. said Tuesday it raised P18 billion from BDO Unibank Inc. and Bank of the Philippine Islands to refinance debt and support other corporate requirements......»»
7 Philippine banks most helpful in Asia amid COVID crisis
A total of seven Philippine banks led by Aboitiz-owned Union Bank of the Philippines were among the most helpful banks in Asia Pacific amid the ongoing global coronavirus pandemic, according to a survey conducted by BankQuality.com......»»
Belmonte, Binay call for climate action funding from development banks
The C40 coalition of cities, a network of nearly 100 mayors, asked MDBs to increase urban climate investment, integrate urban climate action into their strategies, and implement tailored programs to support city projects. .....»»
Aboitiz Equity Ventures Inc. to hold Annual Stockholders Meeting
Notice is hereby given that the Annual Meeting of Stockholders of ABOITIZ EQUITY VENTURES INC. (the "Company") will be held on April 22, 2024, Monday at 11:00 a.m. (the "2024 ASM”)......»»
Aboitiz Power Corporation to hold Annual Stockholders Meeting
Notice is hereby given that the Annual Meeting of the Stockholders of ABOITIZ POWER CORPORATION (the "Company") will be held on April 22, 2024, Monday at 9:30 a.m. (the "2024 ASM")......»»
Aboitiz Power Corporation: Notice of Annual Meeting of Stockholders
Notice is hereby given that the Annual Meeting of the Stockholders of ABOITIZ POWER CORPORATION (the "Company") will be held on April 22, 2024, Monday at 9:30 a.m. (the "2024 ASM")......»»
Aboitiz Equity Ventures Inc.: Notice of Annual Meeting of Stockholders
Notice is hereby given that the Annual Meeting of Stockholders of ABOITIZ EQUITY VENTURES INC. (the "Company") will be held on April 22, 2024, Monday at 11:00 a.m. (the "2024 ASM”)......»»
LIST: Bank schedules for Holy Week 2024
Bookmark and refresh this page for the Holy Week schedules released by banks.....»»
UnionDigital Bank revenue grows to over P5 billion
UnionDigital Bank, the digital banking arm of Aboitiz-led Union Bank of the Philippines, saw its revenue grow to over P5 billion in 2023 mainly driven by higher deposits and loans......»»
SMC OK to add MPTC Indonesia in joint venture
Diversified conglomerate San Miguel Corp. (SMC) is open to including the Indonesian segment of Metro Pacific Tollways Corp. (MPTC) in the planned merger of the toll road operators......»»
AboitizPower names new president
Aboitiz Power Corp. the listed power arm of the Aboitiz Group, has announced the appointment of Danel Aboitiz as the next president and CEO of the company starting July 1......»»
Bank loans used as RRR compliance hit P6.4 billion
Mid-sized and small banks have extended around P6.4 billion loans to micro, small and medium enterprises (MSMEs) as well as large companies, and booked these loans in compliance with their reserve requirement ratios, according to the Bangko Sentral ng Pilipinas......»»
Aboitiz Group raises 2024 capex
The Aboitiz Group is poised to expand its various business units this year, supported by a substantial increase in capital expenditures......»»
Why Trump May Benefit from Truth Social Stock Market Merger
A recent study has shed light on the negative effects of excessive screen time on children’s development. Researchers have found that children who spend extended.....»»
Indian banking sector continues to improve with better asset quality, high credit growth: Survey
New Delhi [India], March 21 (ANI): The health of the Indian banking sector continues to improve with better asset quality and high credit growth, a survey conducted by industry body FICCI and banking association Indian Banks' Association (IBA) showed. The eighteenth round of the survey was carried out for the period July to December 2023. Those banks that were surveyed together represent about 77 per cent of the banking i.....»»