Commenting on the integration of technology within the financial sector, the Bangko Sentral ng Pilipinas (BSP) has revealed its ongoing investigations into the implications and necessary safeguards for the use of generative artificial intelligence (AI) in banking. Under the guidance of BSP Governor Eli Remolona Jr., the central bank is focusing on identifying effective measures to counter potential risks that may arise from the employment of AI technologies, such as ChatGPT and other machine learning tools. Governor Remolona has underscored the necessity of introducing “guardrails” to ensure the safe application of generative AI within banking and the wider financial industry.…

Recent insights from the Bangko Sentral ng Pilipinas (BSP) have cast light on the challenging environment facing the Philippines’ digital banking sector. According to Melchor Plabasan, Director at the BSP, among the six digital banks operational within the nation, only two have navigated their way to becoming profitable so far. “There are two among the six banks that are profitable, but the expectation is that it would take about five to seven years before a digital bank becomes profitable,” Director Plabasan said at a press conference. This situation mirrors a global trend where merely 5% of digital banks are managing…

In a decisive move to shield investors, the National Telecommunications Commission (NTC) has enacted a directive, prompted by the Securities and Exchange Commission (SEC), to immediately restrict access to OctaFX’s website and applications. This action is in response to identified breaches of the Securities Regulation Code and the Revised Corporation Code of the Philippines. Through a memorandum issued on 8 March, the NTC is supporting the SEC’s bid to halt the spread of OctaFX’s unlicensed operations, which have been deemed detrimental to the economic well-being and investment security of Filipinos. Expressing serious concerns, the SEC in a letter from 27 February…

In the Philippines, a rapidly evolving economy demands financial vigilance. Bank statements serve as crucial tools, providing individuals and businesses with an accurate reflection of their financial health. These comprehensive records empower Filipinos to make informed decisions, combat fraud, and promote responsible spending, ultimately contributing to the nation’s economic growth. However, obtaining a bank statement in the archipelago can be challenging and time-consuming, particularly for customers who need the statements urgently for various purposes. This involves a tedious process of traveling to the bank, filling out forms, and waiting for the statement to be issued. This is particularly problematic for…

HSBC Philippines has unveiled a new application programming interface (API)-based e-commerce payment solution known as Omni Collect. This platform aims to simplify how businesses manage payments across various channels, facilitating the integration of both online and offline payment methods for customers. Omni Collect is designed to cater to the needs of companies from a range of sectors, including retail, consumer brands, healthcare and pharmaceuticals, shipping and logistics, and financial services. By connecting to a single API system provided by HSBC, businesses will have the advantage of receiving immediate payment notifications and accessing detailed data analyses. This is expected to improve…

The Bangko Sentral ng Pilipinas (BSP) has outlined plans to introduce an instant cross-border payment service by 2026, aiming to simplify the process of sending remittances to the Philippines. BSP Governor Eli M. Remolona, Jr. highlighted this initiative during a news briefing, suggesting it could reduce the cost of remittances significantly. The move is part of the central bank’s broader strategy to promote financial inclusivity and the adoption of digital payments, which it believes could aid the country’s economic recovery. Despite a modest increase in remittances from overseas Filipino workers, which grew by 2.9% last year to $33.491 billion, this…

Hubert Dominic B. Guevara has been appointed as a new Securities and Exchange Commission (SEC) commissioner, succeeding fellow attorney Kelvin Lester K. Lee, whose term has concluded. Guevara, with a background as a lawyer and extensive experience in both the public sector and private legal practice, returns to the SEC after more than a decade. SEC Chairperson Emilio B. Aquino remarked on Guevara’s return, stating, “We are excited to welcome Atty. Guevara back to the Commission. We look forward to the expertise and insights that Atty. Guevara brings from his decades of experience in the executive branch and in the…

E-wallet GCash has announced its expansion into South Korea through a strategic partnership with Seoul-based broker E9pay. This collaboration aims to offer overseas Filipino workers a more efficient and cost-effective way to remit funds back home, tapping into the sizable Filipino community in South Korea. Paul Albano, General Manager of GCash International, emphasised the importance of this move, noting that it stands to benefit the substantial number of Filipinos living in South Korea. With more than 60,000 Filipinos based there, according to immigration data, the partnership is set to make financial transactions smoother and quicker for the community. The foreign…

Tonik Financial, headquartered in Singapore and operating the Tonik Digital Bank in the Philippines, has recently revealed a reduction in its workforce, which the company says is a strategic move towards enhancing revenue streams and attaining profitability. The decision, as disclosed by founder and CEO Greg Krasnov, involves the retrenchment of select fixed positions deemed non-critical for the company’s forward momentum. Although specific numbers were not provided by Greg, insights from a knowledgeable source revealed to Tech in Asia that the cutbacks had supposedly impacted 80 roles across various departments. This development follows a period of significant expansion for Tonik, marked…

Creador, a private equity firm in Southeast Asia, has made a strategic investment of PHP4 billion (US$ 71.2 million) in Asialink Finance Corp., an online lending firm to the Philippine small and medium enterprise (SME) sector. This investment grants Creador an 18% stake in Asialink, alongside a seat on its board of directors. This partnership is poised to catalyse Asialink’s expansion efforts, enhancing its capacity to support SMEs by not only increasing its lending capabilities but also by improving operational efficiencies. Creador’s contribution will extend beyond financial investment, aiming to bolster Asialink’s growth through the introduction of international banking partnerships and…

Salmon has recently introduced its “early bird” savings scheme. The financial services company now operates a licensed bank, the Rural Bank of Sta. Rosa/Laguna, alongside a series of lending companies in the Philippines. This initiative offers Filipino consumers a notable opportunity to accrue savings at an interest rate of 8.88%. This rate is accessible exclusively to individuals engaging in a 12-month time deposit, with savings amounting to more than PHP500,000, and is initially available at the Rural Bank of Sta. Rosa/Laguna branches. According to Salmon, this initiative reflects its commitment to promoting financial inclusion, aiming to provide consumers with access…

GoTyme Bank is poised for considerable growth, with expectations to more than double its customer base by the conclusion of this year. This anticipated expansion is linked to the bank’s plans to introduce a broader range of products and services. Speaking at a central bank gathering, GoTyme’s Co-Chief Executive Officer and Chief Commercial Officer, Albert Raymund O. Tinio, conveyed a positive outlook for the bank’s progression throughout the current year. Reflecting on past achievements, Albert pointed out that GoTyme’s affiliate, Tyme, attained profitability around December of the previous year. “We’re very much on track to do that. We’re bullish that…

In a notable development at the outset of 2024, Coins.ph, the most established Bitcoin and cryptocurrency exchange market in the Philippines, announced that its service Coins TradeDesk has achieved a trading volume of over P8 billion in January alone. Coins TradeDesk offers foreign exchange and cryptocurrency services to businesses, financial entities, and individuals of high net worth, facilitated by Coins.ph, the Bangko Sentral ng Pilipinas (BSP) licensed fintech firm. Coins.ph gave the example of Seagulls, a company that facilitates the transfer of mobile credit and bill payments across an international network spanning 100 countries, as one of the clients benefitting…

ProCredit, a fintech enterprise specialising in loans for small and medium-sized enterprises (SMEs), has successfully raised US$4.1 million in a pre-seed funding round. This round was led by Integra Partners and saw contributions from the Menardo Jimenez Family Office, M Venture Partners (MVP), Cento Ventures, Gobi Partners through the Gobi-Core Philippine Fund, along with several local angel investors. ProCredit, based in the Philippines, is notable for its focus on technology-enabled SME lending, founded by a team with a collective experience of over fifty years in SME lending within emerging markets. The founders, who have previously held senior roles at Citigroup,…

Within the realm of sustainable finance in the country, the Monetary Board and the Bangko Sentral ng Pilipinas (BSP) have granted approval to the Philippine Sustainable Finance Taxonomy Guidelines (SFTG) for banking entities during its assembly on 14 February 2024. This initiative marks a significant stride towards integrating environmental and social sustainability into the financial sector’s operations. Eli M. Remolona, Jr., the Governor of the BSP and Chairman of the Monetary Board, remarked on the importance of this sustainable finance framework, stating, “The issuance of a taxonomy is a crucial step in our sustainability journey. It provides high-level guidance in…

Philippines startup Helios claims to have launched the first solar mortgage programme, marking a step towards transforming the local energy landscape. This initiative aims to facilitate Filipino households’ access to solar energy through affordable financing solutions, effectively reducing electricity bills for numerous families and offering a safeguard against the erratic nature of power costs. Helios, as described by its co-founder and chief customer officer Alex Aronson, operates as a climate fintech platform, orchestrating the process between banks, customers seeking to mitigate high electricity expenses, and installers. The company’s role could be pivotal in streamlining the transition to solar power, making…

The Securities and Exchange Commission (SEC) has issued a cautionary notice to the public regarding their dealings with DigiVault Trading and Altstrade, highlighting that these entities are not authorised to solicit investments due to lack of registration with the SEC. The SEC has brought to attention that DigiVault Trading has been promoting investment packages promising returns ranging from a modest 15% to an eye-catching 357%, depending on the amount and duration of the investment. These packages allow for investments starting from as little as P50 to as much as P500,000, with promised returns materialising within five to 75 days. Additionally,…

Qlik revealed its collaboration with Bank of Makati Inc (BMI), the Philippines’ fifth-largest stand-alone thrift bank by assets, marking a step forward in utilising data to enhance financial services. The partnership focuses on employing Qlik Sense to streamline the process for customers, including savers and entrepreneurs across the nation, in securing loans and reaching their financial objectives. This initiative is part of the bank’s broader effort to promote economic empowerment through data. Qlik dashboards are now enabling the Bank of Makati to gain deeper insights from customer data, loan approval statistics, and current sales performance, which is instrumental in making…

the Asian Development Bank (ADB) has allocated grants amounting to US$655,000 to support the digitalisation efforts of nine rural banks, plus a bank consortium in the Philippines. This financial assistance aims to facilitate these banks in adopting digital technologies to enhance their services, especially for the country’s underserved communities. The banks set to benefit from this initiative include Banco San Vicente, Camalig Bank, MVSM Bank, Rural Bank of Guinobatan, Rural Bank of Medina, Rural Bank of Montalban, Rural Bank of Porac, Rural Bank of Silay, the Rural Bank of Tandag, and the Good Bank Consortium, which comprises three rural lending…

BPI Wealth, the wealth management subsidiary of the Bank of the Philippine Islands (BPI), is preparing for a substantial increase in its assets under management (AUM) in the coming year, driven by a favourable economic environment and the introduction of new financial products. Maria Theresa D. Marcial, President and Chief Executive Officer of BPI Wealth, expressed confidence in the company’s capacity to continue its growth trajectory into 2024 and beyond, with AUM expected to grow by approximately 15% to 20%. “Looking ahead, BPI Wealth is on track and poised to sustain our growth momentum in 2024 and beyond. We see…