BAIPHIL Week 2019: FOSTERING STEWARDSHIP AMIDST FINANCIAL INNOVATIONS
A major cog of the financial system, banks play a crucial role in keeping the gears of the national economy moving. Under the astute supervision of the Bangko Sentral ng Pilipinas (BSP), the banking industry provides muchneeded financial services to the P
Behind every bank’s premium services are its people, the team of professionals and support staff that move in perfect sync to ensure that the company runs like a well-oiled machine. To help keep these skilled professionals in peak condition, the Bankers Institute of the Philippines, Inc. (BAIPHIL) has been established as the education and research arm of the banking industry, and has contributed much in identifying and institutionalizing its best practices. Upholding a tradition of leadership excellence, BAIPHIL leads in capacity-building measures and guides banks toward productivity enhancement
through training, research and information exchange.
To better understand the vital role of the Institute as the educational arm that supports the development of the banking workforce, The Philippine
STAR sits down with BAIPHIL President for Fiscal Year 2018–2019 Dom Gavino, Jr. as he talks about significant milestones, achievements and directions ahead of the BAIPHIL Training and Development Week (BAIPHIL Week) from March 11–16.
BAIPHIL AT A GLANCE
Established in 1941 under the name National Association of Bank Auditors and Comptrollers (NABAC), the Institute was envisioned to increase the efficiency and uniformity in bank accounting, auditing and operations among banks. It began as a small organization, with founding members consisting of the Philippine National Bank, First National City Bank (now Citibank), Philippine Trust Company, Agricultural and Industrial Bank (now Development Bank of the Philippines), Bank of the Philippine Islands, Monte de Piedad & Savings Bank, and China Banking Corporation.
Almost 78 years since establishment, BAIPHIL has become an important player in the Philippine banking industry, as it consistently spearheads capability enhancement. Today, BAIPHIL has 62 Institutional Members (universal, commercial, foreign, offshore banking units, thrift and government banks, including BancNet and bank regulatory agencies i.e. BSP, PCHC and PDIC) and around 166 key bank executives as Associate Members. BAIPHIL is regularly developing and conducting trainings, workshops, learning sessions and general membership meetings to inform, update and upgrade the knowledge and expertise of Filipino bankers.
“To facilitate training and information exchange, BAIPHIL counts on a pool of talented and experienced banking professionals in developing various courses for the banking workforce. Right now, we have a group of finance officers taking care of building the competencies of our colleagues in bank finance departments and comptrollership. This group dwells on financial reporting, adherence of bank financials to accounting standards and at the same time, focuses on other areas like tax risk management, stakeholders management and business partnering. There is another group of bank auditors who are also developing course modules for banks’ internal auditors in partnership with the Institute of Internal Auditors of the Philippines (IIAP). These are all aligned with BSP initiatives to strengthen the risk and control capabilities of banks,” Gavino explains.
ADOPTING INNOVATIONS WITH PRUDENCE
The advent of new technology in banking has allowed millions of Filipinos to enjoy the convenience of new innovations like cashless shopping, wireless fund transfers and electronic bills payments among many others. And while the ease of use and fast adoption of these services have opened new doors in customer experience, BAIPHIL has called for renewed vigor in enforcing good governance practices and industry safeguards that will ensure that the
banking public is protected against unscrupulous individuals.
“The power of the different innovations that we have right now is pushing the fast-paced evolution of the industry. While we enjoy the advantages of these innovations, it is important to have safeguards in place to make sure that these advancements are used for the good of the entire business community. The good governance practices that BAIPHIL has been advocating are ever more important in the advent of these fast-moving technologies. We need these control safeguards,” Gavino stressed.
LAYING THE GROUNDWORK, PASSING THE TORCH
Aside from the institute’s initiatives in education, training and human resource development, the BAIPHIL chief executive also revealed that serious efforts are under way to find the next generation of volunteers that will lead BAIPHIL to the future. He also mentioned that plans are in full swing for the establishment of a BAIPHIL Training Center, hopefully within five years.
“On the short term, BAIPHIL aims to strengthen the bank’s administrative portfolio and develop more certification and training courses. On the mid-term, we need to find and hone the future movers of BAIPHIL—talented and dedicated individuals who will focus on the execution of the various steps leading to the realization of this longheld dream of setting up a permanent, well-structured and integrated training center. Right now, the Institute holds its trainings and seminars in hotels, but what we would really want is our own training facility that can house simultaneous learning events and offer state-of-the-art learning tools and resources. We are very positive about this because it could be the legacy project of the BAIPHIL leadership, something which has always been part of the aspirations of the founders and former officers of BAIPHIL,” Gavino reveals.
BAIPHIL WEEK 2019 AND 30TH BAICON
In recognition of BAIPHIL’s critical role in the development and advancement of the Philippine banking industry, the second week of March has been declared as BAIPHIL Training and Development Week (BAIPHIL Week) under Presidential Proclamation No. 1248.
During this time, the entire banking community is invited to take part in a weeklong series of events that foster BAIPHIL’s vigorous pursuit of its core mandate to support the banking industry through training and education. The BAIPHIL Training and Development Week will also enable the banking community to keep pace with the changing regulatory and business environment amidst the challenges and opportunities driven by financial technology innovations and developments.
With the theme, “Fostering Stewardship Amidst Financial Innovations,” BAIPHIL Week 2019 featured a number of key activities. On March 11, experts from the BSP Financial System Integrity Department tackled BSP Cir. No. 706 as amended by BSP Cir. No. 1022 during the Amendments to AML/CFT Laws, Rules and Regulations (BSP Circular No. 1022) and the AML Risk Rating System. The following day, March 12, the National Risk Assessment (NRA) seminar discussed an overview of the ML/TF threats and vulnerabilities of the Philippines at a national level, particularly in the banking sector.
On March 13, the BSP Metro Manila Currency Operations Sub-sector (MCOSs) in partnership with BAIPHIL presented the “Know Your Money Briefing and Unfit Currency Exchange” in support of the BSP’s Clean Note and Coin Policy. This activity, which was held in Hotel Veniz, Baguio City, featured an informative session on New Generation Currency (NGC) banknotes and coins, currency exchange for unfit notes and coins by BAIPHIL member banks, and an open forum.
Capping the week is the 30th BAIPHIL biennial convention (BAICON) from March 14–16, 2019 at the Baguio Country Club in Baguio City, which will gather key stakeholders in the Philippine banking industry to discuss and collaborate on issues that directly impact the industry, particularly in the arena of financial innovations.
“We aim to bring together the biggest possible number of banking sector participants to this convention, as authorities and subject matter experts expound on wide-ranging developments and initiatives, as well as emerging trends related to digital banking and financial technology. We are partnering, as always, with the BSP, in the planning and mounting of activities meant to empower all banks to support BSP’s directions in encouraging financial innovations, but with a keen eye on managing risks and consumer protection. These are all good signs that the Philippines is in step with what is happening globally, open to change and ready to explore new opportunities, but guided by a strong sense of stewardship and responsibility,” Gavino concludes.
ON THE SHORT TERM, BAIPHIL AIMS TO STRENGTHEN THE BANK’S ADMINISTRATIVE PORTFOLIO AND DEVELOP MORE CERTIFICATION AND TRAINING COURSES. ON THE MID-TERM, WE NEED TO FIND AND HONE THE FUTURE MOVERS OF BAIPHIL—TALENTED AND DEDICATED INDIVIDUALS WHO WILL FOCUS ON THE EXECUTION OF THE VARIOUS STEPS LEADING TO THE REALIZATION OF THIS LONG-HELD DREAM OF SETTING UP A PERMANENT, WELLSTRUCTURED AND INTEGRATED TRAINING CENTER.