By Mhicole A. Moral, Special Features and Content Writer, BusinessWorld

Banks have built their reputation on trust, personal service, and community ties. These qualities have helped them stay connected with customers who seek face-to-face interactions and tailored advice.

With more people using online banking apps and digital services, financial institutions are working to uphold their traditional values while keeping pace in the fast-evolving technology race.

“The Philippine banking sector in 2025 is experiencing a dynamic transformation, marked by technological advancements, regulatory reforms, and evolving consumer behaviors,” BAIPHIL President Iñigo “Nitoy” L. Regalado III told BusinessWorld in an email. “While the banking sector remains robust, it is navigating a complex landscape of challenges that require strategic adaptation.”

Balancing traditional and modern banking took center stage at the 33^rd National Convention of the Bankers Institute of the Philippines, Inc. (BAIPHIL), held at the Iloilo Convention Center from March 6 to 8.

The convention’s theme, “Harmonizing Cultural Tradition and Technological Innovation Towards a Responsible Banking Legacy,” guided three days of presentations, panel discussions, and networking events. The sessions focused on the future of digital banking and the enduring values that define the banking profession.

Several presentations highlighted how banks are updating their digital tools, from mobile apps to AI-driven services, to meet the evolving needs of customers. At the same time, banks discussed ways to preserve personal service, such as training staff to offer quality advice and maintaining access to physical branches.

BSP Deputy Governor Chuchi G. Fonacier emphasized the need to combine technology with the values long held by Filipinos. She described this approach as “tech with a heart and soul,” where innovation is guided by responsibility and empathy.

Dr. Felipe M. De Leon Jr., president of the Asian Social Institute and professor of art studies at the University of the Philippines Diliman, discussed the deep cultural foundations that influence Filipino values and national resilience. Atty. Matthew M. David reminded attendees of the importance of honor and integrity in banking, noting that these are essential to building trust and achieving excellence.

The role of artificial intelligence was also discussed with Ana Aboitiz-Delgado, president and chief executive officer of Union Bank of the Philippines, highlighted how AI can personalize banking services while reflecting the country’s relationship-driven culture.

Meanwhile, Leila C. Martin, executive vice-president for the Digital Banking Sector of the Land Bank of the Philippines; Tanya P. Hotchkiss, executive vice-president and chief technology officer of Cantilan Bank; and Rafael Francisco D. Amparo, executive director of the Rural Bankers Association of the Philippines (RBAP), spoke about the power of bayanihan (cooperation), utang na loob (shared responsibility), and malasakit (genuine concern) in advancing financial inclusion, especially in rural and agricultural areas.

“Financial institutions, regulators, and the private sector must work together to ensure that innovation serves society, digital finance remains secure, and sustainability drives economic progress. As the financial industry evolves, leadership must be rooted in purpose,” BAIPHIL told BusinessWorld.

Bridging the gap

Banking is shifting rapidly with new technologies that make managing money easier for many Filipinos. Mobile banking apps and digital wallets have become common tools, allowing users to access their accounts anytime and anywhere. Emerging technologies such as blockchain and artificial intelligence (AI) are also beginning to reshape how banks manage operations, detect fraud, and provide more personalized services.

These advancements are particularly impactful in rural and underserved areas, where access to traditional bank branches remains limited. With more accessible options, more people can now manage their finances without traveling long distances or waiting in lines.

“Furthermore, in order to ensure that banking opportunities are made available for all, the Bangko Sentral ng Pilipinas and the banking sector collaborate in coming up with financial inclusion programs with the overall objective of providing access to some 37 million Filipinos who remain unbanked,” Mr. Regalado added.

However, the absence of human interaction, such as transaction errors or loan inquiries, can quickly turn a minor glitch into a serious customer complaint. In some cases, the frustration caused by impersonal service may even result in violations of consumer protection laws. As technology continue to grow, banks are reminded that building trust remains vital, especially in a culture that places high value on relationships.

“The shift towards digital banking has heightened exposure to cyber threats, including phishing, malware, and data breaches,” Mr. Regalado added. “It is, therefore, important to come up with robust cybersecurity measures and maintain an environment that consumers can trust with their investments and moneys.”

“Understanding Filipino culture is essential because banking is not solely about generating profit or meeting shareholder expectations. It is also about building trust, fostering relationships, and providing services that are genuinely responsive to the needs and values of the Filipino people,” BAIPHIL said.

The solution, they added, lies in bringing Filipino heritage into the boardroom. Financial institutions that align their operations and services with cultural values not only avoid alienating customers but also position themselves for long-term success.

While Filipinos are willing to use technology, they still want someone to talk to when problems arise, according to BAIPHIL. They want a bank that listens, not just responds; a bank that cares, not just calculates.

“Traditional Filipino values and modern banking innovations are not mutually exclusive; they can synergistically enhance the banking experience,” the organization said. “Integrating Filipino heritage and cultural values into banking is not just a social or ethical imperative — it is a strategic business decision. When clients feel seen, heard, and cared for, they stay. And when they stay, the bank thrives.”

Meanwhile, BAIPHIL pointed out that Filipino cultural values such as empathy and compassion should guide financial institutions even as they adopt new tools. To support this, the Bangko Sentral ng Pilipinas has introduced regulations to protect consumers as banking evolves. These include BSP Circular No. 1160, which enforces the Financial Products and Services Consumer Protection Act (Republic Act No. 11765), and BSP Circular No. 1048, which urges banks to integrate consumer protection into their corporate culture and daily operations.

The BSP also holds bank officers accountable when they violate rules or act unethically, as the Manual of Regulations for Banks clearly outlines procedures for handling administrative cases involving directors and officers.

Expanding services and reach

Founded in 1941, BAIPHIL is a non-stock, nonprofit group composed of BSP-supervised financial institutions. Starting out as the National Association of Bank Auditors and Comptrollers, it began with a goal to improve efficiency and standard practices in banking. Over time, as it underwent several name changes until its current name, the organization has evolved into a key institutional partner of the BSP, helping roll out training programs, disseminate regulatory updates, and promote industry standards.

BAIPHIL continues to implement several projects for banking professionals. In addition to its National Convention, the organization expanded its reach through National Regional Outreach activities held in Cebu City and Iloilo City earlier this year. These initiatives focused on delivering industry-standard learning and dialogue to areas often left out of the conversation.

Beyond ground-level programs, the organization completed a significant governance change following the approval of its further amended Articles of Incorporation and new bylaws. According to BAIPHIL, this move positions the organization to operate more efficiently and respond more effectively to the fast-changing demands of the industry.

The governance update supports future plans and keeps the organization adaptable. These changes aim to help the group meet its targets, expand operations, and strengthen the delivery of services and training to members and partners.

BAIPHIL also seeks to improve the overall banking experience for Filipinos by helping banks effectively adopt new tools. Its work also aims to keep banks updated on the latest security measures to protect customers and ensure seamless service.

The organization reported record-breaking results from its regular training programs, exceeding both profitability targets and participant numbers. The trainings, which aim to enhance the skills of banking professionals, cover a wide range of topics, from banking regulations to risk management and operational excellence, and continue to attract large audiences due to their relevance and practical value.

Through these efforts, BAIPHIL signals its commitment to shaping the future of banking education and engagement in the country. The organization plans to continue hosting conventions, expanding outreach programs, and offering more training opportunities in the coming months.

“By leading with integrity and inclusivity, financial institutions can build a stronger, more resilient future. By striking the right balance between tradition and innovation, the banking industry can shape and create a financial ecosystem that is resilient, ethical, and inclusive for all,” the organization said.

Today, BAIPHIL has grown to include 71 institutional members and 173 associate members, remains steadfast and committed in fostering a resilient, ethical, and forward-looking banking industry in the Philippines.

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