By Bjorn Biel M. Beltran, Special Features and Content Assistant Editor
Growing up, Iñigo L. Regalado III—the newly installed president of the Bankers Institute of the Philippines (BAIPHIL) and director of the Skills Development Department of the Bangko Sentral ng Pilipinas (BSP)—saw firsthand what it really means to be a banker. .
His father, who worked in a big bank before him, did not go public about the problems he faced at work; but his commitment to his role was always visible in his body, and how the problems of the banking industry seemed to weigh heavily on his shoulders.
Banking, as Mr. Regalado understood, it was a public fund. “It is not your money that you spend, but the public’s,” he said in an interview.
This was the essence of this year’s BAIPHIL theme: “Responsible Banking in the Digital Age.” In the ever-growing digital age, Mr. Regalado sees an opportunity to remind the banking community of its deeper purpose.
“I don’t want a fancy theme,” he said. “I want something that everyone can relate to and be able to relate to, and that’s banking the right way.”
The rise of digital wallets, online commerce, and cashless transactions today has created an unprecedented environment for banks to advance financial inclusion programs, giving underbanked and underbanked communities access to financial services and opportunities.
In fact, as of 2023, digital payments have become the preferred method of Filipinos when making monthly retail payments according to the BSP’s 2023 E-Payments Measurement Report. Digital payments accounted for 52.8% of all monthly payments sold in the Philippines during the year, from 2022 to record 42.1%.
However, this digital environment has also become a fertile ground for malicious and fraudulent activities that put Filipino consumers at risk. According to a study by TransUnion, 8.3% of all transactions by Filipino consumers last year were suspected to be fraudulent, 66% higher than the global digital fraud rate of 5%.
For transactions where the buyer or fraudster was located in the Philippines, TransUnion found that financial services was second only to retail as the industry with the highest level of suspected digital fraud.
So, to Mr. Regalado, responsible banking today is an important framework for how the industry should operate. He points out three pillars that support this concept. The first pillar focuses on regulators, such as the BSP, which play an important role in creating policies that protect consumers and ensure accountability.
“In terms of technology and digital banking, what laws should accompany digital banking?” Said Mr. Regalado. “That’s the side of the regulators—the banks are the police to make sure everything is above board.”
The second pillar involves the banking industry itself. As digital tools become essential in modern banking, institutions must ensure that their employees have the skills to use these tools responsibly. “The challenge is that you don’t just train them to do regular banking, but you train them to do digital banking,” he said.
The backbone of the community, you must learn to navigate the digital banking landscape responsibly. “You also have to be responsible as the end user of the banking system,” said Mr. Regalado. “As an end user, you should be aware of common challenges or pitfalls in the digital environment.”
Unlike regulators, BAIPHIL cannot enforce policies or enforce rules. As a non-stock, non-profit organization that promotes the vision of efficient banking, this organization is what Mr. Regalado refers to it as “a small fish in a very big pond,” and tackling a big problem like responsible banking is a lot. a challenge to try on your own.
Therefore, instead, BAIPHIL seeks to act as a bridge between various stakeholders in the banking industry—the regulators, the banks themselves, and the public.
“We try as much as possible to be a platform for discussion, for discussion,” said Mr. Regalado, “to help each other, to talk to each other, to cooperate, and to make sure that our message is accessible.” .”
In collaboration with institutions such as the BSP, BAIPHIL conducts discussions and programs that promote banking principles, such as the Future of Banking Work Program, which emphasizes the ethical responsibility of bank employees. “We want to communicate that banking is good again,” he said.
Mr. Regalado recalled his father’s commitment to his work, a quiet decision that left a lasting impression on him and his children, building their belief that banking is not just a job—it is a noble calling based on trust, integrity, and community. service.
“That’s where I learned that your values should be strong,” said Mr. Regalado. “When your values are challenged, and you don’t pass the litmus test, that’s when the problems will start to become systemic.”
However, he admitted that success is not easy to measure when using metrics like commitment to values. Metrics such as event attendance, number of partnerships established, or total investment made are useful, but do not fully capture the impact of initiatives aimed at instilling values and ethics in the banking industry.
“What I know is that it will not end in my time. It must have its own life,” said Mr. Regalado.
A Greek proverb says that a community grows bigger when old people plant trees that they know will not shade them. Mr. Regalado sees BAIPHIL as one that plants seeds, developing programs that will grow into lasting contributions to the banking industry.
“Planting seeds, growing them into beautiful trees, so that people can benefit. At the end of the day, that’s where I can say BAIPHIL fought the good fight. We finished the race, and we kept our faith in our words to do well in the bank.”
This article is in the special edition of BusinessWorld In-Depth digital magazine on BAIPHIL Induction of Officers. Get the full issue for FREE with BWorldX. Visit www.bworld-x.com.
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