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SC upheld power over tobacco of FDA — senator

WIRESTOCK-FREEPIK

THE SUPREME Court (SC) has upheld the local Food and Drug Administration’s (FDA) authority to regulate cigarettes and tobacco products in the country, according to a senator.

“This is a major victory for our people and advocates for tobacco control and public health,” Senator Pia S. Cayetano said in a statement on Sunday, citing the decision that upheld the law’s implementing rules.

Ms. Cayetano sponsored and defended the FDA Act of 2009, which empowers the agency to regulate all products affecting health, including cigarettes and tobacco. But the tobacco industry rejected FDA’s authority and brought it to court.

“The health hazards of tobacco cannot be denied, and are backed by strong medical evidence,” the lawmaker said. “It is common sense that these products be subjected to strict regulation by a competent health authority.”

She described the High Court’s ruling “a win for the Filipino people,” saying it would benefit future generations.

“It may have taken 13 years, but it’s these victories that remind me to keep fighting the good fight,” she added. “It’s what makes my job worthwhile.”

Ms. Cayetano said she expects the incoming government to continue to strengthen the country’s health systems and ensure harmful products fall under the jurisdiction of the FDA.

She recalled going to the High Court with Senator Franklin M. Drilon on April 11, 2013 to file a motion to intervene in the legal battle between FDA and Health department and the Philippine Tobacco Institute.

The organization had rejected FDA’s authority then and sought court intervention.

“There is no overlap of functions, as it is clear that petitioners have technical authority over matters of public health,” Ms. Cayetano said, citing the High Court ruling promulgated on June 7.

The rules that implement the FDA Act state that regulations to be promulgated by the body will not apply to those that are covered by specialized agencies and laws, it added. — Alyssa Nicole O. Tan

Bulusan erupts anew, wider area affected by ashfall 

FILE PHOTO | BULUSAN VOLCATNO’S eruption in 2022. — SORSORGON PDERG

BULUSAN Volcano erupted again on Sunday, a week after a similar steam-driven explosion, and spewed ash across a wider area, local authorities said.   

The latest phreatic eruption started at 3:37 a.m. and lasted for 18 minutes, based on the Philippine Institute of Volcanology and Seismology’s (Phivolcs) bulletin.   

“More areas have been reached by ash fall,” the Sorsogon provincial office said.  

Among the areas affected are the towns of Juban, Irosin, Casiguran, and Magallanes, the provincial government said in an advisory as response teams   started clearing operations along main roads and assessing the need for evacuation.   

Residents of Juban who evacuated last week have since gone back home after their villages were cleared of ash fall.   

In the town of Bulusan, the municipal disaster management office said it has evacuated some residents, particularly those who were most vulnerable.  

Power, water, and telecommunication services were all “functional,” it said.    

Phivolcs said alert level 1 remains in effect for Mt. Bulusan, which means it is in an “abnormal condition” and sudden eruptions are possible.   

The agency first raised the alert level from zero on June 5 following a 17-minute eruption that started at 10:37 a.m.   

“Local government units and the public are reminded that entry into the 4-kilometer radius Permanent Danger Zone must be strictly prohibited and that vigilance in the 2-kilometer Extended Danger Zone on the southeast sector must be exercised due to the increased possibilities of sudden and hazardous phreatic eruptions,” Phivolcs said.   

Mt. Bulusan, located about 565 kilometers southeast of the capital Manila, last erupted in June 2017, which was recorded as a “minor phreatic eruption” by Phivolcs. — MSJ 

DBM asserts new migrant workers’ agency can’t use POEA funds yet 

THE DEPARTMENT of Budget and Management (DBM) on Sunday told Migrant Workers Secretary Abdullah D. Mama-o that he has no authority to use funds under the Philippine Overseas Employment Administration (POEA). 

In a statement from the Labor department, DBM Officer-in-Charge Tina Rose Marie L. Canda pointed out that the Department of Migrant Workers (DMW) has yet to be fully constituted.  

“Since it did not meet the clear requirements of the law, there will be no complete transfer of funds unless and until the DMW is fully constituted,” according to a letter written by Ms. Canda. 

The requirements are: a budget for the next fiscal year, an effective implementing rules and regulations, and manpower structure. 

President Rodrigo R. Duterte signed the law establishing the DMW in December last year and appointed Mr. Mama-o as head in March. 

The new department will be absorbing existing government agencies dealing with overseas Filipino workers, including the POEA, to ease procedures relating to migrant workers.   

Ms. Canda said POEA Administrator Bernard P. Olalia “shall continue to exercise authority on its operations until the full constitution of the DMW.”   

President-elect Ferdinand R. “Bongbong” Marcos, Jr., who will be taking office on June 30, has named migrant workers’ advocate Susan V. Ople as the next DMW chief. — John Victor D. Ordoñez 

Cities of Khulna, Davao explore sisterhood pact, business opportunities

BANGLADESHI AMBASSADOR F.M. BORHAN UDDIN — BW FILE PHOTO/ MMPADILLO

DAVAO City in the Philippines and Khulna in Bangladesh are looking at a sisterhood pact as part of initiatives to expand economic and cultural ties between the two countries.   

Bangladeshi Ambassador F.M. Borhan Uddin, who was in Davao last week, said a city-to-city agreement would help facilitate potential business partnerships in agriculture and tourism, among other sectors.   

Mr. Uddin met with Davao City local government officials, members of the city business chamber, and the Mindanao Development Authority for exploratory talks.  

He said Bangladeshi company Square Pharmaceuticals Ltd., for example, is eyeing to set up a manufacturing plant in the Philippines.  

“We will request to divert the company here in Davao City if possible. We will try to negotiate with the company to come here to Davao City and establish their plant,” he said in an interview.   

On tourism, the envoy said Davao and the Philippines as a whole are not yet in the radar of Bangladeshi travelers.  

“Many Bangladeshis are coming to Singapore, Thailand, and Malaysia and they don’t know about Philippines,” he said.    

“We already have flights to Singapore so the connectivity is present… So we’ll work with the travel agencies of Bangladesh and Davao and Cebu to make that (tour packages) possible.”  

Honorary Consul General of Bangladesh in Mindanao Joji Ilagan-Bian said they can organize online meetings among travel agencies from Bangladesh, Cebu and Davao City to come up with packages.  

The Philippines and Bangladesh are celebrating the 50th anniversary of their diplomatic relations this year. — Maya M. Padillo 

Lawyers’ group asserts right to protest not contingent on permits 

PHILIPPINE STAR/ WALTER BOLLOZOS

A LAWYERS’S group on Sunday hit Philippine police after its top officials recently claimed that the right to protest in public is contingent on securing a permit.  

“The right is enshrined in the Constitution, which supersedes any statute, ordinance, executive order or regulation issued by any public official or agency,” the National Union of People’s Lawyers (NUPL) said in a statement.   

“A permit is not essential for the assembly itself,” it said.   

NUPL said that even the rally permit under Batas Pambansa Blg. 880, which the city government of Manila recently ordered to be “strictly” enforced by local authorities, is only an administrative requirement that “allows the local government to regulate — not ban — the time and place of public assemblies.”  

“By applying for a permit, the local government is given notice that a specific public place will be the site of an upcoming assembly, giving it time to reroute traffic, deploy police officers, and reserve the location for the applicant in case other groups also intend to use the same place,” it said. “As a matter of fact, if the mayor fails to act on the application within 2 working days, the permit is already deemed granted.”  

NUPL said that because of the recognized importance of the right to protest, the law sets “an extremely high bar for its curtailment.”  

“Only the existence of a ‘clear and present danger’ — meaning, an evil that is both extremely serious and imminent — can justify restrictions to it.”  

The group said even if organizers failed to apply for a permit, BP 880 itself states that “no person can be punished or held criminally liable for participating in or attending an otherwise peaceful assembly.”  

“This is one aspect of the law frequently violated by the police when, as in recent weeks, they arrest peaceful protesters and even journalists covering the events.”  

Authorities last week arrested more than 90 people, including peasants and advocates as well as journalists, in Tarlac City in northern Philippines for allegedly holding an illegal assembly.   

Several were released soon after while 83 were charged for illegal assembly, among other offenses. Those facing cases were all released as of Sunday afternoon after posting bail. — Kyle Aristophere T. Atienza 

12 Abu Sayyaf members surrender in Sulu

PHILIPPINE ARMY KALINAW NEWS

A DOZEN members of the Abu Sayyaf, a kidnap-for-ransom group that has also in recent years allied with the extremist Islamic State, turned themselves in to security forces Friday, the military reported on Sunday.  

The 12 men surrendered to the Joint Task Force Sulu through the 1101st Infantry Brigade headquarters in Talipao, Sulu on June 10 and gave up weapons, including M16 rifles, grenade launches and pistols, according to the JTF commander, Maj. Gen. Ignatius N. Patrimonio.  

“The influx of (Abu Sayyaf) returnees is an indicative of our successful peace and security campaign in Sulu. Let us therefore continue our concerted efforts to finally end terrorism,” Mr. Patrimonio said in a statement released by the Philippine Army.   

The government has a program for former rebel group members that include social assistance and livelihood training.   

Since 2017, the Sulu task force has recorded 823 Abu Sayyaf returnees, according to Mr. Patrimonio.  

For this year, 65 members of the group have surrendered so far, he added. — MSJ  

Salceda vows to refile bill for establishment of disease control agency

REELECTED Albay Rep. Jose Maria Clemente S. Salceda will refile a bill in the incoming 19th Congress for the creation of a center for disease control, citing such an institution’s role in pandemic preparedness.   

“I hope President (Ferdinand “Bongbong” R.) Marcos will also make it his priority, as PRRD (President Rodrigo R. Duterte) did,” Mr. Salceda said in a statement on Saturday.   

“It’s a waste, it was sponsored on the Senate floor, but there was not enough time in the 18th Congress,” he added. “So, I will refile it, and this time, we will hopefully be able to get it through Congress. Because the infections you want to deal with will not go away.” 

He cited the recent resurgence of monkeypox cases in several countries. As of June 9, around 1,300 cases have been identified worldwide.   

No monkeypox case has so far been detected in the Philippines.  

“These infections, whether mild or serious, will come to the Philippines… so you have to have the capacity to deal with it. You have to have the institutions, the surge capacity, the culture, and the resources to adapt,” he said.  

Under the bill, the proposed Center for Disease Control and Prevention will serve as an umbrella agency for existing infectious disease units. It will have expanded health emergency powers with staff trained to respond to “sudden-onset” diseases such as the coronavirus 2019.  

The 18th Congress adjourned sessions with the bill pending on second reading under special order at the Senate, while it was passed on third reading at the House of Representatives. — Alyssa Nicole O. Tan 

Philippines forges investment promotion agreement with UAE

JCOMP-FREEPIK

THE PHILIPPINES and United Arab Emirates (UAE) signed an investment promotion and protection agreement (IPPA) on June 9, with the Trade department expressing an interest in tapping Dubai investment in agriculture and energy, among others. 

In a statement on Sunday, the Department of Trade and Industry (DTI) said Trade Secretary Ramon M. Lopez and UAE Minister of State for Financial Affairs Mohamed Bin Hadi Al Hussaini signed the IPPA, which it said is expected to create 2,500 jobs and over P7.1 billion worth of investment.

“The parties intend to promptly facilitate the internal procedures needed for the entry into force of the IPPA. Sectors of interest from the UAE include import and distribution, the manufacture of scaffolding and formwork, engineering services, defense, telecommunications, tourism, poultry, aerospace, retail (such as medical equipment/devices), and renewable energy,” the DTI said.  

The DTI said it is eyeing investment in agribusiness and agriculture, energy efficiency technology and renewable energy, infrastructure and public–private partnership  projects, artificial intelligence, information technology and business process management  and shared services, manufacturing, oil and gas, processed and specialty food, and tourism and hospitality.

Philippine products the DTI expects to promote to the UAE are plastic and rubber products such as gloves, vulcanized rubber, and vulcanized rubber thread and cord, and spices such as cloves and pepper.

The IPPA establishes a Joint Committee on Investments (JCI) which find areas of cooperation between the two countries. The JCI is headed by undersecretaries of the DTI and the UAE’s Ministry of Finance.

Mr. Lopez said that the IPPA comes at the start of the process for forging a Comprehensive Economic Partnership Agreement (CEPA), with Dubai.

“The IPPA will boost investment between the countries and the CEPA will also pave the way for the Philippines’ enhanced access to the broader Middle Eastern region and could be UAE’s strategic hub in the Southeast Asian market,” he added.

In February, the DTI said that a CEPA with UAE is expected to contain elements of a free trade agreement.

Philippine interests for inclusion in a CEPA include fresh and processed fruit, seafood, food products, beverages, electronics, appliances, machinery, personal care goods, iron and steel, wood, cement, chemicals, automotive and automotive parts, ships and aircraft, textile and garments, footwear, and leather.  

According to the DTI, the UAE was the Philippines’  23rd largest partner in terms of two-way trade, the 21st largest export market and the 26th largest source of imports in 2020. — Revin Mikhael D. Ochave

Three deals with Israel expected to broaden B2B contracts with PHL

RAWPIXEL.COM-FREEPIK

THREE newly signed agreements with Israel are expected to enhance business-to-business (B2B) interaction between Israel and the Philippines, bringing bilateral trade beyond pre-pandemic levels, the Israeli embassy said.

“The challenge is to show to both sides that the Philippines is an interesting market which brings interesting opportunities,” Israel Ambassador to the Philippines Ilan Fluss told reporters on Friday.

“This is done not only with figures, statistics and by sending e-mails, you have to have interaction,” he added. “Our plan now is to work more on the interaction between business to business, the private sector.”

The ambassador noted that Israel is currently searching for new partners since it depends on exports as a small country. “We always look abroad,” he added, noting that its traditional markets include the United States and Europe, with the recent addition of China and the United Arab Emirates.

Israel Embassy Economic Attaché and Head of the Economic Mission Tomer Heyvi said there is great potential for trade and investment in the Philippines. “We do expect it to grow in the coming years.”

Israel is targeting more electronics imports from the Philippines, as well as food, agriculture-based products, and consumer goods such as garments and textiles.

However, more support must be given to the private sector to achieve its potential, Mr. Fluss said. “We are not tapping the potential, this is the main message, and it is up to us to help the private sector to fulfill this potential.”

The three agreements signed last week included an investment promotion and protection agreement (IPPA), a memorandum of understanding (MoU) forming the Joint Economic Commission (JEC), and a MoU seeking to strengthen cooperation with the Israel Innovation Authority.

The IPPA, which needs ratification from Congress, provides the framework for a closer investment relationship between Israel and the Philippines. It also specifies investment protection elements such as national treatment, most favored nation treatment, free transfers, rules-based expropriation and compensation, and investor-state dispute settlement.

The JEC seeks to intensify the bilateral economic cooperation and linkages, enhance the current state of trade and investment, and address trade barriers.

Cooperation with the Israel Innovation Authority will take place in research and development and commercial relations.

Bilateral trade in goods between the Philippines and Israel peaked in 2019 at $338 million. It dropped in 2020 due to the pandemic, but rebounded to $323 million in 2021.

Mr. Heyvi said Israeli exports to Philippines are still “relatively low, consisting of only 0.3% of Israel’s total exports.

“But I’m sure that with the two major agreements, the IPPA and the joint committee, we (have) planted the seeds for better economic and trade relations between the two countries,” he added.

Once further growth has been attained, both countries can begin negotiations on a free trade agreement, Mr. Heyvi said. — Alyssa Nicole O. Tan

Dominguez wants ADB to take the lead on ASEAN-specific climate action program

FINANCE SECRETARY CARLOS G. DOMINGUEZ III

FINANCE Secretary Carlos G. Dominguez III urged the Asian Development Bank (ADB) to lead a climate action information and best-practices exchange program within the Association of Southeast Asian Nations (ASEAN).

“Climate change might be a global problem,” Mr. Dominguez said in a statement on Saturday. “The issue, however, exhibits itself most starkly in our smallest communities. I am sure that the ADB will be ready to help us promote the exchange of climate change action and adaptation practices among the ASEAN countries.”

Mr. Dominguez also said an ADB program would be a better alternative to relying on international entities, such as the United Nations Climate Change Conference of the Parties (COP), which he says leans heavily towards big-picture problem-solving and not solutions specific to local communities.

Mr. Dominguez brought up the prospect during the signing of two loan agreements on June 3. One was a $250-million policy-based loan intended to finance the Climate Change Action Program, Subprogram 1 (CCAP1), and the other the Capital Market-Generated Infrastructure Financing, Subprogram 2 (CMGIF2), a $400-million policy-based loan intended to help develop and boost the domestic capital market, infrastructure financing, and insurance and pension funds.

“The two programs (CCAP1 and CMGIF2) are not unrelated. An improved infrastructure backbone will increase the efficiency of our economy. It will enable us to improve our climate resiliency and spur sustainable growth,” Mr. Dominguez said.

CCAP1 is the ADB’s first climate change-based policy loan, making the Philippines a pioneer in climate policy development financing in the region.

“This initiative will hopefully encourage other countries to design and accelerate the implementation of their own climate programs,” Mr. Dominguez said. “This sends a very strong signal to the international community that the Philippines is fully committed to deliver on our climate ambitions.”

The Philippines has set a goal of cutting its greenhouse gases (GHG) emissions by 75% by 2030, particularly from agriculture, waste material, industry, transport, and energy, based on its Nationally Determined Contribution to the Paris Agreement, in which nearly 200 countries pledged to mitigate their respective GHG emissions.

The Philippines is considered one of the countries most at risk to climate change, with an average of 20 typhoons landing in its territory every year, causing flooding and damage to infrastructure.

On Thursday, the ADB greenlit a $4.3-billion loan for the South Commuter Railway Project, which is expected to halve travel time between Metro Manila and Calamba. It is expected to generate 35,000 jobs during construction and another 3,200 permanent jobs for its operation, including giving those along its line potential access to more than 300,000 jobs. — Tobias Jared Tomas

Xendit payment platform eyes clients of all sizes, even in remote areas

By Keisha B. Ta-Asan

INDONESIAN financial technology (fintech) company Xendit said it is positioning itself as a payment infrastructure platform supporting businesses of all sizes in Southeast Asia, to tap into demand for digitally transformative services in the region, even in areas with little broadband penetration.

Xendit said its target set takes in the whole range, from individual sellers, micro-, small-, and medium-sized enterprises (MSMEs), growth-stage startups, and large enterprises.

In the current climate, businesses need to digitize for them to grow faster, Xendit Philippines Managing Director Yang Yang Zhang said in an interview.

“I think that adopting emerging technologies, introducing these kind of new business processes, accepting online payments, is crucial for any business’s survival,” Ms. Zhang said.

“We really, really want to make sure that we are not just building out for the top 10% of companies. (The target is) 100% of the businesses that are out there,” she added.

The fintech industry in the Philippines has adopted emerging technologies to overcome the advantages held by incumbent financial institutions as well as the challenges posed by coronavirus disease 2019 (COVID-19).

According to the Philippines FinTech Report 2022, the number of fintech companies in the Philippines was 222, up 16.8% from the number recorded in 2020.

“I think that Filipino businesses were able to figure out how to thrive by transforming themselves,” Ms. Zhang said, “And so I think that, as we kind of emerge from the pandemic, (digital transformation) will continue.”

Ms. Zhang said the company, which entered the Philippine market in 2020 is seeking out partnerships to achieve an innovative digital payments offering that will differentiate itself from the rest of the field.

“We had this really lean team that had to figure out how we’re going to distinguish ourselves from people who’ve been in the market one year longer, five years, longer, 10 years longer than us,” Ms. Zhang said.

A recent partnership with DragonPay, one of the pioneers in providing alternative payments in the Philippines, gave Xendit room to expand, Ms. Zhang said. The eventual aim is to serve remote and underserved areas.

“The way that we want to reach these specific kind of far flung areas (where) there’s really been no penetration… (of) digital payments, is really by working with the… platforms that are working towards those sari-sari store enablers, or organizations that work primarily with farmers and fishermen,” Ms. Zhang said.

DATA SECURITY
When consumers entrust personal information to digital platforms, data security becomes mission-critical, Ms. Zhang said.

“Within Xendit, we actually have an entire team of hackers who hack us every single day. It’s their sole job is to come in, and to figure out where the vulnerabilities are, and so proactively they figure out where they are, so we can address them before anyone else can,” Ms. Zhang said.

She added that part of the journey to creating “a world-class payments experience… is making sure that the customer is very aware at each step of what is happening.”

“For example, there are many ways you can facilitate a bank transfer. When we facilitate that, we make it very clear to customers where the touch point with a bank is, and the touch point with the app, and also what they’re actually signing up for,” she added.

Fintech: Powering digital transformation in financial services

(Last of three parts)

Anyone who has transferred money to another person’s account without having to deal with a bank employee — by e-mail, text, call or physical visit to a bank branch — is no longer a total stranger to financial technology. But keeping up with developments in the market can be dizzying, as fintech has grown exponentially of late, helped in part by the global health crisis that provided the impetus to reexamine processes and put the customer at the core of solutions.

Fintech trends have been disruptive and will continue to be so especially now that the mobility restrictions since 2020 forced financial institutions to take a good look at what a digital economy is going to look like. Looking at the practical responses of banks to stay agile during the pandemic by examining processes that can be automated and making them more customer-centric, we can see that financial institutions have already set into motion what could be the beginnings of digital transformation.

In some countries, financial firms are proactively taking steps to understand how their organizations can benefit from the wide array of available and emerging technologies. The experience over the past two years points to an acceleration of technological innovation in the years to come. Making sense of all the buzzwords can be a task for the uninitiated in the fintech world. It would be wise to identify which tech trends to focus on in relation to how they can impact the industry and diverse organizations.

In the first part of this three-part series, we discussed the key themes anticipated within the next two years in the fintech market in Asia. In the second, we looked at tax considerations in the Philippines. In this last part of the series, we take a look at a few of the tech trends that are worth keeping an eye on as the industry continues to experience dramatic change.

WHITE LABEL FINTECH
White labeling allows firms to sell products without incurring significant development expense, time or navigating regulatory compliance. Also referred to as “Banking as a Service,” it is an authorization to brand and sell products or services developed by another company. This allows fintech firms to create a branded front-end offering layer over white label application programming interface or API-enabled platforms.

This solution leverages the innovation ecosystem without the need to reinvent, reinvest in and go through the entire technology development life cycle. It significantly reduces go-to market offerings to customers and seamlessly integrates technology innovation, creative product offerings and compliance requirements in a highly regulated industry to better serve customers.

White labeling is a great and attractive option for businesses to leapfrog into the modern digital world. It is a strategy for emerging companies to reduce risks and free up resources to focus on what they’re good at — develop products, build the brand, and grow their client base. For fintech startups, white label solutions allow them to meet the demands of customers, minus the learning curve. Companies availing of these solutions, however, will have limited control over product development, and the drawbacks can range from bugs and security weaknesses to failure to observe the law.

DATA AGGREGATORS
A customer’s financial footprint is distributed across various institutions, instruments, and platforms, making it difficult to have a full view of their transaction history. Data aggregators collate customers’ bank accounts, mortgages, brokerage accounts, and credit card data, among others, so they could provide one financial view of customers, irrespective of channel and the businesses the customers transact with. They accomplish this through APIs used by fintech firms through which customers log in to their platforms.

This aggregation of data at scale is also the backbone of open banking and a free-flowing financial ecosystem. Data aggregation powers a wide gamut of fintech applications to provide financial services on demand like advising, lending, quicker money transfers etc. The portability enabled by data aggregators cuts down paperwork and allows customers to improve eligibility and access to better products/services. With a free flow of data in the financial ecosystem, firms can have a better view to offer personalized products in real time.

Data aggregators’ connection with many institutions, however, can equate with multiple points for possible breaches and leaks. Security risks can also arise from web data scraping, a process that involves a computer program logging into a bank’s website using a client’s credentials and reading code to extract financial data. The industry though continues to look into superior ways of aggregating data without compromising the protection of customers. This, nevertheless, brings to the fore the question of greater regulations that establish guidelines on how financial data is accessed and stored safely. 

ROBOTIC PROCESS AUTOMATION OR RPA
Customer experience drives loyalty to brands. Financial institutions, in turn, grow revenue and margins based on customer loyalty. Hence businesses are increasingly automating core operations to focus on enhancing customer experience and loyalty.

Robotic process automation or RPA accomplishes mundane and repeatable backend processes better, faster, and more accurately. RPAs are easy, flexible, budget friendly, and quick to deploy, improving productivity while enhancing serviceability and incremental revenue. RPAs ensure mistake proofing, compliance, real-time reporting and insights in a highly regulated fintech sector.

Automation is a great boost to operational efficiency. RPA’s future popularity in the world of fintech will likely be borne out of its utility to compliance and regulatory needs. With automation, businesses are able to efficiently keep audit trails for every process, supporting high compliance.

VOICE-ENABLED PAYMENTS (VEP)
More and more people get recommendations, shop for the best deals, and perform tasks using rapidly evolving voice assistants (e.g., Alexa, Siri, Google) backed by sophisticated natural language processing and artificial intelligence. Digital voice assistant-enabled devices are estimated to double to 8.4 billion by 2024 providing a smarter and more connected ecosystem than ever before.

Many banking services are rapidly being integrated and are accessible through voice assistants. As voice encryption, voice-biometrics, multifactor authentication and voice tokenization advances, a secure voice assistant has the potential to disrupt how customers will pay in the future. The pandemic and millennials comfortable with voice over typing will accelerate adoption. VEP is projected to be used by 31% of the US adult population in 2022.

This technology allows seamless, end-to-end, integrated concierge-like experience, allowing customers to multi-task better. As digital payment is the largest segment within the global fintech sector, voice integration with digital touch points will separate fintech leaders from laggards. To drive new opportunities, growth and leadership, fintech players will need to continue to rapidly adopt disruptive VEP technology.

As we keep an eye on these and many other tech trends, we will continue to witness the evolving behavior of consumers, which in turn will feed into the appetite of organizations to embrace and capitalize on this wave of technological innovation. There is, however, an element of uncertainty in technologies that, although disruptive, have yet to pass regulatory scrutiny. Financial firms will have to look at how best to jump onto the bandwagon, so to speak — to work on their own projects or fire up their collaborative spirit and forge alliances with industry peers to push new technologies to wider adoption.

The potential of these tech trends to help make a world of difference in how processes are improved and productivity raised can be astounding. At the end of the day though, leaders will have to go back to what matters most when embracing innovation — enhanced customer experience, services transformation, and a proven track to successful business models.

This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinions expressed above are those of the author and do not necessarily represent the views of SGV & Co.

 

Anurag Mishra is a technology consulting principal of SGV & Co.

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