As the Philippines accelerates its shift towards digital transformation, experts are urging local banks and insurance companies to prioritize human-centered approaches in adopting artificial intelligence (AI), focusing on financial inclusion, personalized customer service, and enhanced experiences.
Speaking at the Asian Banking & Finance and Insurance Asia Summit 2025 in Manila, market leaders stressed the importance of ensuring that AI adoption complements the human aspect of financial services.
BSP Prepares for AI Regulation
Melchor Plabasan, a senior director at the Bangko Sentral ng Pilipinas (BSP), opened the summit with an overview of the country’s AI regulatory landscape. Plabasan highlighted that BSP is preparing new regulations to address areas such as ethical AI use, bias management, and improving AI’s accuracy. The central bank has already implemented five regulations and is supporting various legislative bills on responsible AI use.
“Based on our review, the financial sector is generally prepared for the AI revolution, especially in equipping themselves with proper risk management tools,” Plabasan stated at the summit, held at the Makati Shangri-La Hotel on March 11.
UnionBank Highlights AI as a Platform for Innovation
Dennis Omila, Chief Transformation Officer at UnionBank of the Philippines (UBP), discussed the bank’s digital transformation journey and AI adoption during a fireside chat. He emphasized the value of creating platforms that allow for continuous AI experimentation before full-scale implementation.
“Having a platform lets you experiment cost-effectively and efficiently, ensuring that you can innovate without the fear of failure,” Omila explained.
Christian Lauron, Financial Services Leader at SGV & Co. (EY Philippines), added that banks must maintain strategic agility in navigating shifting regulatory priorities, enabling them to adapt quickly to evolving AI challenges.
AI’s Role in Transforming Customer Experience
Clement Quek, APAC Digital Strategist at Adobe, highlighted AI’s potential in reshaping customer experience management. As consumers increasingly expect personalized, proactive service, financial institutions can use AI to offer tailored suggestions that improve customer well-being.
“AI can help financial institutions serve customers better, offering personalized services that enhance their financial health,” Quek said.
Financial Inclusion Remains a Challenge
Despite advancements in financial inclusion, challenges persist for many Filipinos, particularly in rural areas where access to insurance and banking services remains limited. Sari Mortel from J.P. Morgan and Noel Tordesillas of Etiqa underscored that mobile penetration still outpaces banking access, presenting opportunities for growth in both sectors.
Lito Villanueva, Executive Vice President of RCBC, cautioned that while digital technology is a powerful enabler, it is not a panacea for financial inclusion. “Digital is not the solution by itself. It is an enabler,” Villanueva noted, referencing RCBC’s First Kapitbahay ATM initiative, which partners with small businesses to extend banking services to underserved areas.
Dr. Adrienne Heinrich of UnionBank’s AI Center of Excellence stressed that improved rural infrastructure, including digital partnerships, is key to broadening financial inclusion and education.
Digital Banking Strategies in a Saturated Market
Amid a crowded banking landscape, digital banking leaders discussed their strategies for differentiation. Angelo Madrid, President of Maya, emphasized that data strategy is central to a bank’s success. “It all begins and ends with data,” Madrid stated.
GoTyme Bank’s co-CEO Albert Tinio highlighted the importance of building trust, pointing to the bank’s use of physical kiosks in grocery stores where customers can make deposits and withdrawals with the assistance of agents.
Kalidas Ghose, Chairman of UNO Digital Bank, noted that customisation of services is crucial for building trust over time, especially in a competitive market where differentiation is key.
Well-Being and Security Take Center Stage
In her keynote address, Sitti Reyes from Boston Consulting Group (BCG) highlighted that Filipinos prioritize financial security, especially regarding health and housing. According to a BCG study, most Filipinos are focused on managing health-related expenses and securing their financial future rather than increasing debt or loans.
Vita Guillen, Chief People & Culture Officer at FWD Insurance Philippines, discussed their employee support programs, including apps for personal and crisis support and tuition assistance for further education.
Security was also a significant topic, with Marlon Cruz from Globe Business discussing innovations in authentication. Cruz introduced a new mobile authentication method that uses the mobile network to verify transactions, preventing manipulation through GPS. This innovation aims to enhance transaction security, providing a more robust defense against fraud.
As the Philippines continues to navigate its digital transformation, integrating AI into banking and insurance services while prioritizing human-centered values will be key to ensuring that financial institutions remain accessible, trustworthy, and customer-focused.
Related topics
