The pandemic rendered the Philippines to value and appreciate technology more, as Filipinos become more dependent on using their devices and Internet connectivity in their daily affairs, including banking.
Digital or online banking has been utilized and embraced out of necessity and efficiency. It has made things more convenient when it comes to managing our finances during these trying times.
UnionBank bared that 65% of its clients migrated to digital banking channels due to the pandemic. Filipinos’ frugal acceptance of technology set us in the right direction. We are still grasping at straws to apply what works and to avoid what doesn’t mitigate the impact of the COVID-19 outbreak.
Online banking in the Philippines, however, comes with new struggles, despite the efforts that we have to push digitalization. We are relatively new in the field that we can see the limitations of our banking ecosystem.
These limitations include how we tap on the financial innovations available to us and the security that comes with digitalization. There are still so many things that need patching up when it comes to our digital infrastructure, of which we’re hardly capable of doing all at once.
If another cyber theft were to occur again, such as the P160-billion heist that occurred in United Coconut Planters Bank (UCPB), it would devastate the banking industry’s reputation which is disastrous to the entire economy.
The Bangko Sentral ng Pilipinas (BSP) has a valid point of stressing the need for “quality over quantity” expansion in our digital financial ecosystem.
The BSP demands digital bank players to have the tenacity to withstand risks involved in online-only banks if we want the state of our digital banking infrastructure to stay up float in the first place.
Some of the challenges in digital banking include the establishment of consistent and resilient cybersecurity. But from the looks of it, we are still working on that.