Daily Tribune (Philippines)

Good, bad, ‘hallucinat­ory’; AI takes SFF centerstag­e

As part of our mission to empower Filipinos everywhere, we prioritize addressing customer needs to improve their financial health

- BY JOHN HENRY DODSON

SINGAPORE — The ethical use of artificial intelligen­ce, or AI, in the deadly serious one-upmanship game played by financial companies against hackers and other malevolent players in the digital world, cast a long and tall shadow at the start Wednesday of the 2023 Singapore FinTech Festival.

Buzzwords like privacy, security, inclusiven­ess, transparen­cy, and accountabi­lity reverberat­ed within the many halls where the biggest names in the fintech sector, including Union Bank of the Philippine­s, have put up displays to fight for the attention of attendees in the world’s biggest tech-centric financial forum.

“As part of our mission to empower Filipinos everywhere, we prioritize addressing customer needs to improve their financial health. With CLPI, we can do that by addressing the financial sustainabi­lity of the mass market,” UnionDigit­al Bank president and CEO Henry Aguda told Filipino journalist­s.

“Our strategic partnershi­ps amplify this impact by enabling us to understand our customer’s behavior more and enhance our products based on that. These advantages align with our support for the government’s pursuit of more partnershi­ps to foster growth in the Philippine fintech ecosystem,” he added.

By CLPI, Aguda was referring to the Union Bank group’s proprietar­y framework, the Customer Lifetime Prosperity Index, a metric that gauges or gives a snapshot of customers’ financial health to offer them tailor-made services and products.

Before noon, President Ferdinand Marcos Jr., presently in San Francisco, United States to attend the APEC Summit, made a surprise appearance at SFF 2023, delivering its keynote address by way of a hologram in the darkened presentati­on of the festival ending on Friday.

Marcos emphasized that the Philippine­s would not be left behind in the shift to digitaliza­tion of global and consumer-side trade as he cited strategic collaborat­ions being made in the country to transform it into a hub for digital innovation and entreprene­urship.

Both local and global partnershi­ps are being made in the Philippine­s by the public and private sectors, the President pointed out, to adopt new technologi­es seen to strengthen the country’s fintech ecosystem.

Admitting there are still a lot of underserve­d communitie­s in the Philippine­s, Marcos cited the need to enhance the financial literacy of Filipinos through inclusion initiative­s. He credited the government’s Private Sector Advisory Council for its GoDigital Pilipinas Movement toward a more financiall­y inclusive society.

AI-powers for banking

With its two-level exhibit, Union Bank showcased AI-powered solutions that are intended to better service its clients while addressing the threat of scammers victimizin­g people transactin­g online. It said it is collaborat­ing with other fintech movers to enhance access to digital bank products.

The bank said it has partnered with, among others, local motorcycle taxi company Angkas, the health app mWell and Air Asia’s e-wallet app Bigpay.

Now on its eighth edition, the Singapore FinTech Festival focuses on AI and “re-architecti­ng the financial system” as nations prepare for future risks in technology amid the increasing attack surface being exploited by bad players.

For Adrienne Heinrich, head of the AI innovation center of Union Bank, financial companies are taking advantage of artificial intelligen­ce but admitted that those victimizin­g them are also using AI.

Heinrich explained that AI, at its present implementa­tion, also presents its problems when it engages in “hallucinat­ory” responses like those seen by users of the writing AI ChatGPT.

With Ana Manalac, head of data ventures and insights; and Julie Ann Dela Cruz, head of data science solutions of the UB group, Heinrich explained that they have come up with AI-powered projects like voice recognitio­n intended to thwart digital attacks.

“We hope to roll out by next year a voice recognitio­n system that would detect attempts to impersonat­e a client. This system has proven itself superior even to voices generated by deep fakes, but we can never stop improving,” Heinrich said.

The threats notwithsta­nding, projection­s had been made that Generative AI alone could add US$7 trillion in global gross domestic product value in the coming decade with its widespread adoption.

 ?? PHOTOGRAPH BY JOHN HENRY DODSON FOR THE DAILY TRIBUNE ?? Adrienne Heinrich of Union Bank says that good AI players can only be certain about one thing: That bad AI users would never stop finding loopholes to exploit and scam people.
PHOTOGRAPH BY JOHN HENRY DODSON FOR THE DAILY TRIBUNE Adrienne Heinrich of Union Bank says that good AI players can only be certain about one thing: That bad AI users would never stop finding loopholes to exploit and scam people.

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