Despite significant headway made in improving access to financial services in the Philippines, blindspots in data still remain a major roadblock to this goal.
Whether it is credit data to determine credit worthiness or identity data for KYC/AML, solving this piece of the puzzle remains key to the Philippines’ goal of elevating financial inclusion.
While unbanked populations can benefit greatly from advances in fintech services and online banking, these digital solutions also pose new risks which must be addressed properly..
Key challenges in combatting fraud for financial inclusion effectively:
The ability to onboard customers who may not have rich credit files or less conventional markets with fraud prevention solutions to combat the fraud risk mutates and potentially becomes more severe.
Education that helps to create awareness to end-users as they are the weakest link in banking fraud
Criminals are getting more creative. FIs are required to ramp up capabilities as interactions increasingly shift to digital channels.
A lot of resources required for transaction monitoring and fraud control from the financial and IT as FIs move into the digital economy.
Moderated by Vincent Fong, Editor of Fintech News