By Bjorn Biel M. Beltran, Special Features and Content Assistant Editor
Growing up, Iñigo L. Regalado III—the newly-inducted president of the Bankers Institute of the Philippines (BAIPHIL) and director of the Capability Development Department at Bangko Sentral ng Pilipinas (BSP)—witnessed firsthand what it really means to be a banker.
His father, who worked on the central bank before him, never openly shared the issues he faced at work; but his commitment to his role was all the time evident in his body language, and the way the issues of the banking industry at large looked as if it would weigh on his shoulders.
Banking, as Mr. Regalado understood it, was a public trust. “It’s not your money you’re handling, but the general public’s,” he said in an interview.
This was essentially the core of BAIPHIL’s theme for this yr: “Responsible Banking within the Digital Age.” In an era of ever-increasing digitalization, Mr. Regalado sees a chance to remind the banking community of its deeper purpose.
“I don’t want a elaborate theme,” he said. “I would like something that everybody can relate to and might associate with, and that’s responsible banking.”
The prevalence of digital wallets, online commerce, and cashless transactions today have created an unprecedented environment for banks to push for financial inclusion initiatives, giving unbanked and underbanked communities access to financial services and opportunities.
Actually, as of 2023, digital payments have turn into the popular approach to Filipinos when making monthly retail payments in keeping with the 2023 BSP Report on E-Payments Measurement. Digital payment transactions accounted for 52.8% of all total monthly retail payments within the Philippines in the course of the yr, up from 2022’s recorded 42.1%.
Nevertheless, this digital environment has also turn into fertile ground for malicious and fraudulent activity putting Filipino consumers in danger. In response to a study by TransUnion, 8.3% of all digital transactions by Filipino consumers last yr were suspected to be fraudulent, 66% higher than the worldwide digital fraud rate of 5%.
For transactions where the buyer or fraudster was situated within the Philippines, TransUnion found that financial services were a detailed second behind retail because the industry with the very best suspected digital fraud rate.
Hence, for Mr. Regalado, responsible banking today is an imperative framework for the way the industry should operate. He identifies three pillars that underpin this idea. The primary pillar focuses on regulators, similar to the BSP, which plays a critical role in crafting policies that safeguard consumers and ensure accountability.
“With technology and digital banking, what are the principles that ought to go along with digital banking?” Mr. Regalado said. “That’s the regulator’s side—policing banks to ensure that every part is above board.”
The second pillar involves the banking industry itself. As digital tools turn into essential to modern banking, institutions must make sure that their employees have the abilities to implement these tools responsibly. “The challenge is you’re not only training them for normal banking, but digital banking as well,” he identified.
The ultimate pillar is the general public, who must learn to navigate the digital banking environment responsibly. “You furthermore mght need to be responsible as an end user of the system of banks,” Mr. Regalado said. “As an end user, it’s best to know the challenges or the common traps in a digital environment.”
Unlike regulators, BAIPHIL cannot impose policies or implement rules. As a non-stock, non-profit corporation promoting the mantra of banking excellence, the organization is what Mr. Regalado refers to as “a small fish in a really big pond,” and tackling a problem as vast as responsible banking is simply too much of a challenge to aim alone.
So, as an alternative, BAIPHIL seeks to act because the bridge between various stakeholders within the banking industry—the regulators, the banks themselves, and the general public.
“We try as much as possible to be an avenue for talks, for dialogue,” Mr. Regalado said, “in order that we may help one another, check with one another, collaborate with one another, and ensure that our message gets across.”
Through collaborations with institutions just like the BSP, BAIPHIL facilitates discussions and initiatives that promote ethical banking practices, similar to the upcoming Banker’s Skilled Program, which emphasizes the moral responsibility of banking professionals. “We would like to speak that banking work is noble as well,” he said.
Mr. Regalado recalled the commitment his father had for his work, a quiet resolve that left a long-lasting impression on him and his siblings, shaping their belief that banking isn’t only a profession—it’s a noble calling rooted in trust, integrity, and public service.
“That’s where I learned that your values must be resolute,” Mr. Regalado said. “The moment your values are challenged, and also you don’t pass the litmus test, that’s when the issues will begin to turn into systemic.”
Nevertheless, he admitted that success isn’t easy to measure while you use metrics like commitment to values. Metrics like event attendance, the variety of partnerships formed, or the whole investments committed are useful, but they don’t fully capture the impact of initiatives that aim to instill values and ethics into the banking industry.
“All I do know is it cannot end with my term. It has to have a lifetime of its own,” Mr. Regalado said.
A Greek proverb states that a society grows great when old men plant trees whose shade they know they shall never sit in. Mr. Regalado sees BAIPHIL as that planter of seeds, nurturing initiatives that can grow into lasting contributions to the banking industry.
“Planting seeds, nurturing them to turn into good trees, so that folks can profit. At the tip of the day, that’s after I can say that BAIPHIL fought a very good fight. We finished the race, and we kept the religion to our mantra of banking excellence.”
This text is within the special edition of BusinessWorld In-Depth digital magazine on BAIPHIL Induction of Officers. Get the full issue for FREE via BWorldX. Visit www.bworld-x.com.
