The year in review: Digital consumer protection in 2023
The new year is a good time to reflect on some key milestones that we achieved in the name of consumer protection in our increasingly digital world. In 2023, we saw several examples of how the public and the private sectors prioritized the safety of digital transactions. Nevertheless, as scammers continue to innovate, the need to boost the defenses of consumers becomes even more paramount.
Why consumer protection?
Many of us are now enjoying the convenience of going digital. We can work, study, shop and bank using our computers and mobile phones. The pandemic might have accelerated this shift, but even with the return of in-person economic activities, we can still see the boom in digital consumerism.
Banks and financial institutions are also participating in this digital transformation through the development of online banking solutions, the creation of mobile banking apps, the utilization of artificial intelligence (AI) in personal finance management and other digital innovations. These new technologies aim to make banking easier, more efficient and more inclusive.
With the increasing use of digital payment systems, banks and financial institutions have been working hard to safeguard their customers from fraud and cybercrime, while also reinforcing confidence in these payment platforms.
Reinforcing confidence in digital payment systems
Let us face it: digital payments have become an essential part of the lives of Filipinos. According to the 2022 Status of Digital Payments study by the Bangko Sentral ng Pilipinas (BSP), digital payments accounted for 42.1 percent of total retail payments made in 2022. This is a significant increase from 2021 (30.3 percent), 2020 (20.1 percent), 2019 (14 percent) and 2018 (10 percent). BSP’s data also show that the main drivers for the rise in digital payments were merchant payments and person-to-person fund transfers.
These are more than just numbers. They tell us a story of increasing confidence in digital payments among Filipinos. Thus, banks and financial institutions play a crucial role in reinforcing this confidence so consumers can maximize these payment platforms without having to worry about cyber threats.
Now, how did we fare in terms of consumer protection in 2023?
Policies to institutionalize consumer protection
We started 2023 with the approval of the Philippine Development Plan (PDP) 2023-2028 in January. One of the important strategies under the PDP is to promote an inclusive, innovative and healthy financial sector. To do this, the government aims to “intensify consumer protection” through the implementation of the Financial Products and Services Consumer Protection Act, enhancement of the regulatory environment, enforcement of stronger cybersecurity measures and enhancement of cybersecurity awareness campaigns on financial scams among private financial institutions.
Another highlight was the government’s support for the Anti-Financial Account Scamming Act (Afasa). This proposed law aims to impose penalties on money mules, social engineering schemes (e.g., phishing, vishing, etc.) and economic sabotage. The Bankers Association of the Philippines strongly advocates for the approval of this bill because we know how challenging it is to keep up with the ingenuity of cybercriminals.
Afasa can deter scammers from committing fraudulent acts against financial consumers. We are grateful that the House of Representatives approved the bill last May and that President Marcos identified Afasa as one of his priority bills during his second State of the Nation Address. Moreover, we thank the Senate for their hard work in tackling the bill. The industry hopes that it will be signed into law soon so we can have stronger consumer protection mechanisms for the general banking public.
Forging a new movement
To complement these policies, we also saw the launch of the TrustTech movement last July 28. The movement brought together key players from the national government, private sector, civil society and country partners to discuss the challenges and opportunities in fighting financial cybercrimes and strengthening trust in our digital landscape. This launch is just the beginning of a series of activities that will forge cooperation among stakeholders so we can formulate stronger measures against cybercrime, learn the best practices in consumer protection, and raise awareness about cyber threats so the public can arm themselves with the necessary information to combat scams and other types of fraud.
2024 and beyond
Our achievements will lay the foundation for what needs to be done this year. We have the signing of Afasa to look forward to, and we also have more activities in store for the realization of TrustTech. More importantly, we will continue to look for ways to fight for banking customers. We are well aware of the ingenuity of cybercriminals, and we know that they will develop different ways to scam consumers. That is why we need to stay on top of cybersecurity trends, and we must foster collaboration among relevant stakeholders so we can share what we know and learn from one another.
There is a lot of promise in what we have achieved in 2023, but there is still more to do. To ensure that our consumers are protected, we must maintain this momentum as we welcome the new year. INQ
This article reflects the personal opinion of the author and not the official stand of the Management Association of the Philippines or MAP. The author is president and CEO of the Bank of the Philippine Islands and president of the Bankers Association of the Philippines. Feedback at [email protected] and [email protected].
