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FILE – Google logo is photographed at the VivaTech show in Paris, June 15, 2023. Japan's antitrust watchdog said Monday, April 22, 2024, that U.S. search giant Google must fix advertising search restrictions affecting Yahoo in Japan. (AP Photo/Michel Euler, File)
Google said artificial intelligence (AI) could offer a “promising” opportunity for fintech companies in the Philippines to harness the power of the technology not only to attract more customers but also to protect them from fraud.
While many fintech companies in the Philippines are using AI primarily for marketing purposes, Jackie Wang, Google's country director for the Philippines and Thailand, said they could also learn from their peers in other countries in using AI to detect and prevent financial crime.
For example, Wang said companies like British banking giant HSBC are using AI in the UK and Hong Kong to detect suspicious activity and spot known money laundering behavioural patterns.
“This is another area where I think AI will really play a big role,” Wang told reporters.
“The Philippines has an opportunity to learn what is really going on and do a better job of combating (scams),” she added.
Financial Inclusion
The Bangko Sentral ng Pilipinas (BSP) has previously cited widespread fraud and corruption as a major obstacle to expanding financial inclusion in the country, which has set a goal of bringing 70% of Filipino adults into the formal financial system by 2023.
However, the central bank is working to strengthen anti-fraud measures to build Filipinos' trust in the financial system. The BSP is currently developing an AI roadmap that will identify specific use cases for AI in financial institutions, including the technology's potential to detect and prevent fraud. The AI roadmap is expected to be released next year.
Wang said Google could provide products to local fintech companies to protect customers from scammers, but stressed that fighting fraud requires a national effort. “And we think it's hard for one company or one government to solve it alone,” he said.
“I really believe this is one of those issues that requires the private and public sectors, nonprofits, law enforcement industry players, different organizations to come together and think about how we address this issue,” she added.
