BANGKO Sentral ng Pilipinas (BSP) Governor Nestor Espenilla Jr. announced during the Philippine Bar Association’s lunch fellowship on Wednesday, July 26, that the central bank is attempting to tap into regular technology (regtech) to manage the financial services and the collection of consumer complaints filed before them through modern technology.
Espenilla explained that the BSP uses slang terms like ‘FinTech,’ ‘RegTech,’ and ‘chatbots’ as it taps into artificial intelligence to boost its regulatory and consumer protection functions.
“We are getting all kinds of unstructured data by way of complaints. It is very hard to evaluate unstructured data so here we are using chatbots or artificial intelligence, BSP is also adopting financial technology (FinTech) method. Today, for example, the BSP has a pilot to be called RegTech,” Espenilla said.
Regtech is a software or other technology that helps businesses providing financial services to comply with regulations efficiently and economically. This modernization is one of the first steps on Espenilla’s financial inclusion target since his appointment in May.
Espenilla explained that the BSP leads the experiment of an application program interface (API) system for its reporting process as well as studying the potential use of “chatbots” in handling consumer complaints.
“What we hope to do is from the mass of data there has to be a way of evaluating unstructured data to give us indications of problems that are arising. We are also adopting technologies even as we advocate the use of technology in the financial system. We have come to realization over the years, looking at the way our banking system has evolved, it became very strong but the brick and mortar just won’t catch it. The Philippines is an archipelago,” he said.
According to Espenilla, the BSP has earned technical assistance and has tapped a technology partner to study the prospect of adopting RegTech in its applications.
“We evaluated the possibilities and our pain point is right now we want to come up with a more efficient way and more effective way to get data from reporting institutions that is why we are talking about API systems,” he added.
BSP’s pilot testing phase is tentative yet they anticipate the experiment to wrap up within the year.