Data science and artificial intelligence (or “DSAI”) are two “tandem”-technologies that are sweeping many industries across the globe, with the promise of ushering more personalized, “tailor-fit” digital experiences for people. This has made many of the things we do in our lives simpler, more instantaneous and more convenient.
But is the Philippines, its banking industry in particular, ready to embrace DSAI?
Global data science expert Dr. David Hardoon, Ph. D., Senior Advisor for Data and Artificial Intelligence of Union Bank of the Philippines (UnionBank), said it’s not really the question of whether the banks are ready because they are ready, in response to a question from Frontpageph.com during the 6th installment of UnionBank’s “E-Talk Tales” online session for the media.
“It’s a matter of whether they will do it. It’s now also a question of whether we do it to flourish or simply do it to survive. Our goal is not simply doing it to survive; we are doing it and we are fundamentally changing the way we think or how we operate. We are like a tech company that does banking,” Dr. Hardoon explained.
As regards the opportunity to reach areas in the countryside as well despite challenges to internet connectivity, Dr. Hardoon revealed that it is part of the things that UnionBank is actively working on, though he refused to divulge specific details.
“At the end of the day, it is about accessibility. We could build the most amazing capabilities and services but if people can’t access it, how can we extend digital capabilities to those in the countryside who may want to have access to it right now? Our goal is to cover 100 percent of the Philippines. It may not be happening yet but that’s the objective, to bring the bank to everyone.”
For his part, Joshua Bosiños, Assistant Vice President and Head of Advanced Analytics at UnionBank, said there are certain AI solutions, depending on the purpose, that doesn’t need to run online. “Of course data transmission is necessary to access these solutions but as long as we can collect the data, regardless of how we collect it, and transform it into a form that the AI can utilize it, internet connectivity is not going to be a problem. As long as there’s a way to collect the data, transform it and feed it to the AI, it will be able to provide the needed outcome.”
As UnionBank is now in the next phase of its digital transformation journey, the country’s leading digital bank has continued to invest in talent, infrastructure, and other resources needed to innovate and co-create using DSAI.
Dr. Hardoon also discussed how UnionBank is translating DSAI insights into a very individualized way of banking, making sure that everyone is statistically significant and provided with that VIP treatment with a wide range of personalized services and solutions.
“DSAI is a key element within UnionBank’s digitize or perish journey. It is the differentiator between just ‘Digitize to survive’ versus ‘Digitize to flourish,’” Dr. Hardoon said.
Dr. Hardoon emphasized that AI is a must-have to enable a scalable customer-centric finance of tomorrow, today, and to make finance relevant, specific, and contextual to each individual consumer. His use of AI is not artificial intelligence but “augmented intelligence.” Reality is that humans are phenomenal in creativity that machines do not have. Machines may be able to replicate but it cannot originate. This, according to Dr. Hardoon, is where augmentation comes in. Data science uses the insights from machines to operationalize and contextualize. “It’s not a question of ‘can we do it’ but ‘should we do it.’”
“AI is the engine of the digital renaissance. It is a vehicle to achieve an aspiration. It is important to anchor AI on what truly matters—people, whether customers or employees. AI is truly about being human centric first. The purpose is us, primarily as customers, and how do we leverage on the insight and knowledge that can be derived from AI to help shape financial services around us.”
Digital transformation is heralded as the game changer for the banking sector in today’s reality and for tomorrow’s necessity. The transformation is rooted on the aspiration of inclusive and resilient financial services, and is about achieving a reality where ones’ moments of life are not defined around the financial products available, but where financial services and products are created to support the milestones in life.
“The Bank has been introducing and enhancing countless digital touchpoints for customer ease and fluidity of engagement. These touchpoints mean exactly that, that customers engage with the Bank on a more regular basis. It is our responsibility to imagine. Imagine the ability to provide bridging, or intra-day loans without a customer’s need to submit hefty financial historical statements,” Dr. Hardoon said.
UnionBank uses AI to upgrade its existing strategy and accelerate further innovation, an example of which is its use as an additional layer of defense against financial crimes. AI enables UnionBank to detect more instances while making sure that the existing defense and process will not be disrupted to ensure operation efficiency. AI is also being leveraged by UnionBank to predict future volume of inbound calls that can reduce some of the volatility in call management. Through AI, the cash management solutions team are provided with data-driven relevant recommendations and proposals for customers.
Data Science and AI (DSAI) enables capabilities in understanding customers’ needs through their various engagements with the bank and providers and the ability to go beyond a templated approach to determine relevance, suitability, and affordability. This makes UnionBank the best in the DSAI field.
Consistent with its commitment to make banking simpler and more inclusive via best-in-class digital and mobile capabilities, UnionBank President and CEO Edwin Bautista believes that leveraging Data and AI is a key driver to the next-level of its digital transformation as the Bank continues to put the customer—both individuals and corporates, at the heart of its business.