BAP charts path for 'smarter, bolder' banks

The country's banking sector is gearing up for a bold leap into the future, with the Bankers Association of the Philippines (BAP) outlining sweeping reforms and digital priorities anchored on artificial intelligence (AI), cybersecurity and modernized legislation.

- KEISHA TA-ASAN

Speaking at Finance Philippines 2025, BAP president Jose Teodoro "TG" Limcaoco said the industry faces a defining moment as banks grapple with rapid digital transformation, shifting customer expectations and rising risks from cybercrime.

"Our response as the Bankers Association of the Philippines is clear and unequivocal: We must become smarter, more proactive and much bolder," Limcaoco told delegates at the conference co-hosted by BAP and Singapore-based The Asian Banker.

This year's theme, "Smarter Banks, Bolder Moves: AI and the Future of Finance," captured the thrust of the one-day gathering at the Grand Hyatt Manila that brought together bank executives, regulators, fintech leaders and technology innovators.

Rebuilding the foundations Limcaoco, who is also president and chief executive officer of Ayala-led Bank of the Philippine Islands, said BAP has identified five priority areas that will shape the industry's transformation. The first is market infrastructure rationalization, which seeks to streamline how financial markets operate.

He explained that the BAP has recently restructured its role in the Philippine Dealing System by concentrating on the Philippine Dealing Exchange and transferring custody functions to the Philippine Stock Exchange.

This move, he added, is more than administrative. It clarifies responsibilities, ensures stronger alignment among institutions and builds a clearer foundation for capital market development.

By rationalizing infrastructure, Philippine banks can now better leverage technology and data analytics to improve transparency and decision-making.