Loading
Breaking
Now Reading: FOR CONSUMER PROTECTION | Banks ask for level playing field with fintechs
FOR CONSUMER PROTECTION | Banks ask for level playing field with fintechs
November 15, 2019 , 08:08 PM

By Gerard de la Pena, News5

(NOVEMBER 15, 2019) – Banks are calling on regulators for a level playing field with fintechs and tech startups to better protect consumers’ interests and welfare.

At the sidelines of the 36th Asian Bankers Association, Jonathan Alles, chairman of the ABA, said there should be just a single regulator to oversee the operations of banks, fintechs and online lenders.

Fintech refers to software and other modern technologies used by businesses to deliver automated and improved financial services and products.

Currently in the Philippines, banks are under the supervision of the central bank while fintechs and online lenders are overseen by the Securities and Exchange Commission (SEC), where they are not subjected to strict capital requirements and other regulations.

“That would be our message: how they bring all into one platform, one regulatory system, be it through the central bank or ordinate digital committee that can be brought in at a country level or a payments digital committee,” Alles said.

Pia Roman-Tayag, managing director at the Bangko Sentral ng Pilipinas (BSP), said the regulator is open to new modes of running the banking business brought about by digitization.

She said the Financial Sector Forum, an inter-agency group that includes the BSP, SEC, Insurance Commission and other government agencies, tackles issues surrounding fintechs.

“They lay down what are the providers’ activities that may have some overlaps so we will address any potential arbitrage there or any potential gaps that are not seen by the regulator. So that is our way to address those kinds of concerns,” Roman-Tayag said.

She also said the central bank is looking at tweaking its regulations to become much more accommodating to pure digital banks, or those that do not have physical branches such as ING and CIMB in the Philippines.

“Yun ‘yung mga tinitingnan, mga requirements that are linked to physical networks to see how that will be translated naman if we look at digital. Kasi that will present a different set of risk areas,” Roman-Tayag said.

“Our regulations and requirements will be based on the risks that you will take or the activities that you will provide. It will not be a shift in thinking but of course we have to review existing regulations to see how it will be applied to these new models,” she added.

Philippine banks however recognize that despite the impending collaboration between fintechs and banks, as well as the latter’s adoption of fintech practices, it should not result in the disappearance of brick-and-mortar bank branches.

“People still would like to have a face and somebody to speak to even if it’s digital, even if it’s not face to face. They need someone because at the back of their mind, they know that there is somebody responsible for the money that they would like to have. So we need still to redeploy but in a different manner,” said Wick Veloso, President and CEO of the Philippine National Bank.

More From News5
WOTD | DRAWER
Ang tawag sa pumipirma sa tseke. Alamin ang iba't ibang termino sa usapang legal kasama si Atty. Mel Sta. Maria.
Published On: December 3, 2019
Shabu sa paracetamol
Isinilid ng dalawang drug suspects sa Caloocan ang 12 sachet ng shabu sa kahon ng gamot para hindi raw mahalata ng mga pulis.
Published On: December 3, 2019
Maguindanao massacre 10th anniversary
Umapela si Maguindanao Rep. Toto Mangudadatu na huwag kalimutan ang sinapit ng mga biktima sa malagim na massacre. | via Romel Lopez
Published On: December 3, 2019
VP Robredo, ilalabas ang natuklasan sa war on drugs
Iginiit ng sinibak na anti-drug czar na si Vice Pres. Leni Robredo na pinagtulungan at pinagkaisahan siya para hindi magtagumpay sa kampanya kontra iligal na droga. | via Maricel Halili and Jenny Dongon
Published On: December 3, 2019
WOTD | BILL OF RIGHTS
Mga probisyon sa Saligang Batas na sinasaad ang mga sibil at politika na karapatan ng tao at nagbibigay ng limitasyon sa kapangyarihan ng gobyerno. Alamin ang iba't ibang termino sa usapang legal kasama si Atty. Mel Sta. Maria.
Published On: December 3, 2019
Paalala ng Pangulo sa dalawang House leader
Ipinaalala ni Pres. Duterte na dapat masunod ang gentleman's agreement nina Rep. Alan Peter Cayetano at Rep. Lord Allan Velasco kaugnay ng hatian sa speakership sa Kamara.
Published On: December 3, 2019
"There was a lapse in judgment and I acknowledge that." - Raffy Tulfo
Nilinaw ni Raffy Tulfo na naayos na ang isyu tungkol sa guro sa Maynila na inireklamo matapos umanong mamahiya ng estudyante. Nanawagan din siya na huwag nang palakihin pa ang isyu.
Published On: December 3, 2019
Robredo, determinado pa rin sa kampanya kontra droga
Isasapubliko raw ni Vice Pres. Leni Robredo ang kanyang mga natuklasan at rekomendasyon kaugnay sa drug war. "Makakaasa kayo: kahit tinanggalan ako ng posisyon, hinding-hindi nila kayang tanggalin ang aking determinasyon."
Published On: December 3, 2019
'Gov't can't just sit idly and wait for VP Leni to perform' -Panelo
Hindi naman daw puwedeng maghintay lang ang Palasyo kung kailan magpe-perform ng kanyang trabaho si VP Leni Robredo bilang co-chairperson ng ICAD. Nagbigay ng dalawang dokumento ng rekomendasyon si Robredo sa Pangulo pero huli na para gawin ito, ayon kay Presidential Spokesman Salvador Panelo.
Published On: December 3, 2019
Sec. Villar: Build, Build, Build program, "on track"
Ipinagtanggol ni DPWH Sec. Mark Villar ang Build, Build, Build program ng pamahalaan matapos na punahin ng Sen. Franklin Drilon ang mabagal nitong pag-usap. | via Jove Francisco
Published On: December 3, 2019
Top Stories
EARTHQUAKE IN MINDANAO | Magnitude 6.9 quake jolts Davao, kills 4
December 15, 2019 – Four people were killed and about a dozen were injured when a powerful earthquake shook Davao Del Sur on Sunday, the Phil
Published On: December 15, 2019
RETRIEVAL OPS | New Zealand divers search contaminated waters for volcano victims
WELLINGTON, Dec 14 (Reuters) – New Zealand divers searched contaminated waters near the volcanic White Island on Saturday in an attempt to re
Published On: December 14, 2019
‘MISGUIDED’ | US Senate reso backing De Lima, Ressa, intrusion on PH sovereignty – Panelo
December 14, 2019 – Malacañang on Saturday said that the resolution of the US Senate Committee on Foreign Relations calling for the immediat
Published On: December 14, 2019
‘ECONOMIC SABOTAGE’ | Duterte threatens military takeover of water firms
(DECEMBER 13, 2019) — President Rodrigo Duterte on Thursday threatened a military takeover of water firms Manila Water and Maynilad over the R
Published On: December 13, 2019
ECO BLOCKS & TILES | Kenyan scientist builds roof tiles from broken bottles and plastic wastes
By Nita Bhalla   GILGIL, Kenya, DECEMBER 13, 2019 (Thomson Reuters Foundation) – Hope Mwanake understands the plastic pollution crisis f
Published On: December 13, 2019