Financial Crime World

Philippines’ Banking Compliance Issues Emerge as Concerns Over Data Protection Grow

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A recent survey by global analytics software firm FICO has shed light on the banking compliance issues in the Philippines, highlighting concerns over data protection and security features among digital banking customers. The study polled 5,000 digital banking customers across Asia Pacific nations, providing valuable insights into the preferences and expectations of Filipino consumers.

Prioritizing Security Features

  • 56% of Filipino respondents preferred using online channels to transact with their banks during the COVID-19 pandemic.
  • A significant majority (67%) expressed concern over the potential misuse of personal documents for data and identity theft, prioritizing security features when choosing digital banks.

Authentication Features: Key to Switching Banks

  • 67% of Filipinos stated that they would be likely to switch banks if improved security features were offered, the highest rate among the 10 Asia-Pacific nations surveyed.
  • The importance of security authentication features such as biometrics, one-time passwords (OTP), and two-factor authentication in switching to a different bank was highlighted.

Satisfaction with Existing Security Features

  • 59% of respondents were satisfied with their existing security authentication features.
  • 11% expressed dissatisfaction, indicating room for improvement in this area.

Physical Branches Still Wanted

  • Despite the growing popularity of digital banking, a majority (67%) of Filipinos still wanted banks to maintain brick-and-mortar branches.

Challenges Ahead: Achieving Digital Transactions Target

  • The Bangko Sentral ng Pilipinas has set a target for 50% of transactions, both in value and volume, to be done digitally by 2023.
  • However, the survey’s findings suggest that achieving this goal will require significant investment in customer management and communication tools that can deliver personalization and improved decision-making.

Insights from FICO’s Risk Lifecycle and Decision Management Lead

  • “Being able to deliver and manage numerous channels in line with customer preference and deliver a seamless and engaging experience is a challenge that is here to stay,” said Aashish Sharma, risk lifecycle and decision management lead for FICO in Asia Pacific.