PH POP Casino ｜Coordinated Cybersecurity Plan and AI Roadmap Set to Transform Financial Sector
The Bangko Sentral ng Pilipinas (BSP) is gearing up to launch a comprehensive cyber resilience plan and explore the potential of artificial intelligence (AI) in the financial sector. BSP Deputy Governor Chuchi Fonacier emphasized the importance of a collaborative approach to cybersecurity during her speech at the Chamber of Thrift Banks’ annual convention last Friday.
Manila, Philippines— The BSP will initiate the Financial Services Cyber Resilience Plan for 2024 to 2029 next month, aiming to establish a coordinated response mechanism and proactive information sharing across the financial industry. This plan is designed to enhance cybersecurity standards and promote best practices throughout the sector.
In addition to the cyber resilience plan, the BSP is also developing an AI roadmap to bolster the industry’s defense against emerging technological threats. This initiative is expected to be introduced next year.
Fonacier highlighted the necessity of this plan, stating, “The BSP will soon launch the Financial Services Cyber Resilience Plan for 2024 to 2029, which aims to establish clear and coordinated incident response mechanisms, proactive information sharing, a robust cybersecurity culture, and comprehensive cybersecurity best practices within the financial sector.”
The BSP has been engaging with stakeholders, law enforcement, and other government agencies to ensure a collaborative approach before rolling out the cyber resilience plan. The initiative will outline protocols and provide guidelines on how stakeholders should collaborate, especially when dealing with breaches or threats.
“An essential component is indeed information sharing,” Fonacier noted. “I understand there’s some hesitation at present, but once this plan is in place, the hesitation will diminish as stakeholders realize that shared information will be handled appropriately and confidentially within the ecosystem.”
BSP officials pointed out that banks have been undergoing digital transformation over the past few years. Central bank data reveals that half of the 42 thrift banks had internet banking facilities as of the first quarter. Additionally, about 47% and 42% of these banks participated in InstaPay and PESONet, respectively, while 93% of mid-sized lenders now offer QR PH for peer-to-peer transactions.
Fonacier also mentioned that the BSP is formulating an AI roadmap, which may not be launched this year as the central bank is still exploring AI applications in customer relationship management, bank supervision, virtual assistance, fraud detection, process automation, analytics, and predictive modeling.
She added that BSP Governor Eli Remolona Jr. has not yet appointed officials responsible for the cyber resilience plan and AI roadmap.
The BSP has conducted a thematic review of AI in financial services to better understand the challenges and use cases of AI and machine learning. Senior director of the BSP’s Technology Risk and Innovation Supervision Department, Melchor Plabasan, explained that the review aims to identify specific use cases of AI in financial institutions.
“The ultimate goal of this specific study is to propose fundamental principles for the responsible use of AI in the financial services industry,” Plabasan said.
“We do not intend to introduce another licensing regime for AI. That is not part of the plan. The purpose is actually to set out high-level principles for the use of AI within the industry.”
Plabasan stated that the review has shown that existing regulations already cover nearly 80% to 90% of AI-related risks. The central bank plans to develop new guidelines to address some of the uncovered and undiscovered risks associated with AI. These risks pertain to high-level principles such as data quality and ethical issues.
By spearheading these initiatives, the BSP aims to ensure the financial sector’s resilience against cyber threats while embracing AI’s transformative potential. This strategic approach will not only strengthen the industry’s defenses but also pave the way for innovative advancements in the financial landscape of the Philippines. To learn more, please follow us at PH POP Casino. Stay focused and informed about the latest updates on online casinos in the Philippines. Keep yourself updated with important information regarding Philippine online casinos.
