Philippines Banks Struggle to Keep Pace with Compliance Risk Management Amid Digital Disruption and Regulatory Burden
The financial services industry in the Philippines is facing a complex array of challenges, including economic and market conditions, digital disruption, regulatory burden, increased competition, and more. To remain competitive, banks must navigate these complexities while ensuring compliance risk management.
Economic and Market Conditions
The Philippine banking sector is grappling with stagnant growth, maturing markets, and aging populations. To stay ahead, institutions must focus on establishing an optimum resourcing model and implementing a world-class internal audit methodology to ensure competitiveness.
Digital Disruption
The rise of digital technology has transformed the way banks operate, requiring robust IT systems that can withstand cybersecurity threats and maintain client trust. PwC Risk Assurance-Financial Services helps clients design and implement IT risk and control solutions that reflect the complex technological landscape.
Organizing Big Data
With the increasing reliance on data analysis to identify business risk exposures and fraudulent transactions, financial institutions must develop a robust data management strategy to stay ahead. PwC’s data analytics capabilities help clients define relationships between operational risk, fraud risk, and overall control environments.
Risk Management
Accepting risk is an inherent part of banking, but institutions must identify the right levels of risk to assume and put measures in place to manage it effectively. PwC Risk Assurance-Financial Services helps clients review processes and controls to ensure they remain efficient and effective.
Regulatory Burden
The financial sector faces a significant regulatory burden since the global financial crisis. To stay competitive, banks must embrace compliance as an opportunity rather than a burden. PwC’s Compliance Management Solution offers audit and gap analysis services to help institutions identify gaps in their compliance frameworks.
Increased Competition
In a highly competitive market, consumers expect personalized service and automated processes with easy access. Institutions that can provide these services will dominate the marketplace. PwC Risk Assurance-Financial Services provides practical advice and benchmarking against local publicly listed companies and peers in the region to help clients stay ahead.
How We Can Help
PwC offers a range of compliance risk management solutions, including:
- Internal audit outsourcing and co-sourcing
- Independent compliance testing (ICT)
- AML/FATCA compliance review
- Business controls advisory services
- Development of manuals of operations
- Internal audit staff secondments
- ICAAP independent validation
- BSP Circular Compliance Assessment
By leveraging these solutions, financial institutions in the Philippines can mitigate compliance risk management challenges and stay competitive in a rapidly changing market.