Only 40% of Philippine banks on schedule with digitalization efforts — BSP survey

Only a fourth of Philippine banks are on schedule with their digitalization efforts, according to the latest survey conducted by the Bangko Sentral ng Pilipinas (BSP).

Results of the Banking Sector Outlook Survey (BSOS) show that some 39.3% of banks are on schedule in terms of digitalization, while 27.3% are in the planning stage and have yet to start.

“As a result of the community quarantine restrictions in the country, the digital transformation of the banking system was accelerated with the significant increase in the use of digital payments and electronic money platforms,” the BSP said in an accompanying release.

Broken down by the banking groups, some 63.4% of universal and commercial banks and 42.9% of thrift banks are on schedule, while 47.3% of rural and cooperative banks are still in the planning stages.

The same survey showed that 22.7% of banks are behind their digitalization schedule, 2.7% are ahead of schedule, 5.3% have yet to start and have no plans to digitalize, and 1.3% have always been fully digital.

Among the biggest challenges cited by respondents are the insufficient in-house skills, the lack of the right technology and tools, and the over-reliance on legacy technology.

Issues encountered by banks also include the tendency towards short-term thinking over long-term planning, and the lack of budget and the appropriate data governance.

The BSP earlier this year allowed six digital banks to operate in the country — GoTyme Bank Corp., Maya Bank Inc., Overseas Filipino Bank Inc., Tonik Digital Bank Inc., UnionDigital Bank Inc., and UNObank Inc.

In terms of the economic outlook, 48.3% of respondents expect the gross domestic product (GDP) to grow by over 6.0% this year, up from 35.4% during the December survey.

These include 25.2% who expect economic growth between 6.0% and 6.3%, while 23.1% of the participants expect growth of over 7.0%.—AOL, GMA News