By Melissa Luz T. Lopez, Senior Reporter
GOVERNMENTS and private firms should pour funds into teaching people to adapt new technology, with digital solutions seen to improve inclusion and spur economies.
Experts said during this week’s Asian Development Bank (ADB) meetings that investments to educate people on the use of financial technology would go a long way towards broader inclusion.
“Inclusion is one of these subjects where there can be very different metrics, but clearly everyone agrees that a more inclusive, equal world is something that is good for everybody and something that can be greatly facilitated by technology,” Minette B. Navarette, president at Kickstart Ventures, Inc., said during a debate on Technology in Finance on Friday.
“The hope is to find socially-responsible investing,” Ms. Navarette said, noting that lenders should consider investments beyond profit and factor in long-term returns.
Harnessing the power of technology towards addressing poverty in Asia is the focus of the 51^st ADB Annual Meeting held in Manila, which runs until Saturday.
For his part, Sri Lankan Finance Minister Mangala Samaraweera said their government is currently pouring in funds to incorporate technology studies in basic education, recognizing the need to “adapt to rapid changes.” Schools and communities are also being equipped with public wifi connections to promote digitization.
“As a country, we are determined to leapfrog into the fourth industrial revolution without too many bruises,” Mr. Samaraweera said.
But he also noted concerns that Sri Lankan accountants — a considerable sector in their workforce — could be rendered redundant as artificial intelligence develops further.
ADB President Takehiko Nakao allayed such concerns, pointing out that human interaction remains indispensable despite the advent of robots.
“We need human touch. Although we can be adaptive to new technology, we can use it but I still believe that humans have much more sophisticated communication skills,” the ADB chief said.
Industry experts also said during a joint seminar hosted by the International Monetary Fund and the Bangko Sentral ng Pilipinas (BSP) that financial technology firms can provide a substantial boost to get more people into using formal financial channels.
One model is Taqanu, which uses social media data to establish and verify people’s identities in lieu of government-issued documents. Such a tool is scalable and may be used for customer onboarding, said Julie Maupin, director of social impact and public regulatory affairs at the IOTA Foundation.
Proposals to use digital currencies are also being explored to eliminate the cost and security risks of carrying cash. This is not yet the option being considered as far as the Philippines is concerned.
“It’s a very interesting proposition but I think the perspective is before something like that happens in the Philippines, there are more fundamental issues that we need to sort out,” BSP Governor Nestor A. Espenilla, Jr. said on Thursday.
The BSP chief cited the lack of high-speed networks and cheap mobile data plans as barriers to unlocking greater digital transactions.
“What we’re trying to do at this point in time is to move the dial, move people into more accessible digital solutions and the way we’re approaching it is these solutions can be provided by the private sector who’s very long on innovation,” Mr. Espenilla said, citing a “collaborative” approach taken by the regulator with new players.
ADB’s Mr. Nakao added that governments need “good regulations” and improved connectivity to explore more digital solutions while also managing risks related to these changes.