IT’S 2018 and most Internet-loving Filipino financial consumers are still reluctant to use the Web to make electronic transactions, latest Bangko Sentral ng Pilipinas (BSP) survey showed, as concerns on security still loom in the country.
Still, BSP Governor Nestor A. Espenilla Jr. vowed to take measures to build a regulatory environment that will both welcome the latest innovations and ensure the safety of financial consumers.
The BSP’s latest survey showed that, despite the significant Internet usage and awareness of online payment methods in the country, about half of those with bank accounts and access to Internet connection remain wary about electronic payments due to issues of security and safety.
In particular, the BSP survey on financial inclusion showed that in 2017, at least 38 percent of adults reported owning a smart phone, while 42 percent of the population used the Internet at least a month.
Despite this, 46 percent of those with accounts and are using the Internet are unwilling to use the electronic payment means. Among the unwilling, the top concern remains the presence of hackers, at 25 percent; 21 percent cited personal security and 12 percent said e-payments are not safe to access.
Other reasons include weak signal, scams, lack of awareness on how to use e-payment and lack of trust in online transaction.
Encourage innovation, manage risks
In the BSP governor’s recent speaking engagement notes which was made public on Thursday, Espenilla said the public need “not be apprehensive” about the digital transformation of banking.
“Ultimately, [financial technology] innovations must work for the benefit of consumers. This would include the underbanked and unbanked sectors. In this regard, digitalization has great potential to promote inclusive growth,” Espenilla said.
Thus, the governor said the BSP is looking at the need to address cybersecurity threats “at a broader scope.”
“To respond to this challenge, we established a framework that provides parameters and best practices to identify, prevent, detect, respond to and recover from cyberattacks,” Espenilla said, citing newly issued information security guidelines.
Espenilla also said as innovations are susceptible to cyber threats, regulatory technology—or so-called RegTech—solutions have emerged as a supplement to existing regulatory and supervisory tools.
“The BSP is currently investigating and will pilot RegTech solutions to streamline supervisory functions, particularly to address regulatory compliance and reporting requirements of supervised financial institutions,” the BSP said.