AI, blockchain, and cybersecurity: The triple shield for the Philippine financial system

As the Philippines accelerates on its journey toward a fully digital economy, the financial sector finds itself at the center of both opportunity and risk.

- DONALD LIM

Consumers and businesses increasingly rely on digital banking, e-wallets, fintech apps, and online lending platforms. At the same time, the volume of transactional data, identity information, and financial activity has grown exponentially. To ensure trust, efficiency, and safety, the financial system requires a robust, “triple shield” composed of artificial intelligence (AI), blockchain, and cybersecurity.

Artificial intelligence enables real-time risk scoring, optimized customer service, and fraud detection at scale. Smart algorithms can monitor behavior, flag anomalous transactions, and even detect synthetic identities before they become systemic threats.

AI-driven chatbots and virtual assistants reduce friction during onboarding and help underserved customers navigate financial products, especially for micro-, small-, and medium-sized enterprises (MSMEs) and low-income users. Under the open finance architecture of the Bangko Sentral ng Pilipinas (BSP), financial institutions will be sharing customer data — upon consent — through secure Application Programming Interfaces or APIs. Al can transform this shared data into actionable insights, from creditworthiness assessments to early warnings of financial distress. By automating compliance checks and credit scoring, institutions can onboard customers faster and more inclusively.