The Securities Exchange Commission (SEC) in the Philippines is set to reshape the financial landscape. Under the new leadership of SEC Commissioner Rogelio Quevedo, the SEC is concentrating on enhanced innovation and digitization.
The commissioner boasts an extensive background in both corporate law and telecommunication services, establishing him as a prominent figure in both public and private sectors. He has served as a Government Counsel in the Philippines, worked at the Office of the Government Corporate Counsel (OGCC), PLDT-Smart, and taught commercial and civil law at the University of the Philippines (UP) College of Law.
During a press conference on May 15, SEC Commissioner Quevedo expressed his desire to implement essential reforms, blending innovation with practicality. He recognized that innovation is neither merely a buzzword nor a novel concept. The commission has embraced innovative practices and has pursued this direction since 2021.
“Innovation must always be anchored in practicality. It must consistently focus on service driven by compassion. You need to ensure that your innovations cater to your clients’ requirements,” stated the SEC commissioner.
These reforms are imperative, particularly for enhancing regulation and the financial environment. One technological advancement he highlighted is the adoption of artificial intelligence (AI) at the SEC. At present, AI is evolving at an extraordinary speed, significantly enhancing efficiency and promoting financial inclusion within the sector.
“AI, as I mentioned, is not simply a technology. AI is a tool; it is a framework. Its effectiveness depends on the quality of the data it utilizes and the skill of the individuals supplying the data, as well as those overseeing the process itself,” he remarked.
AI serves multiple roles for the SEC. It automates repetitive tasks, retrieves information instantly, facilitates SEC registration, and monitors borrowers to prevent unfair collection practices.
Nevertheless, as digitization progresses, it continues to pose risks. These include human biases that may stem from AI usage and cybersecurity threats, such as service interruptions and identity theft. To mitigate these, the SEC Commissioner recommended a cautious approach to AI and advocated adopting the latest cybersecurity protocols from established firms. Commissioner Quevedo cites his experience as an intelligence officer combating cybersecurity risks to national security as a key asset in fulfilling his duties at the SEC.
With AI and cybersecurity in effect, stakeholders should be able to leverage these to their advantage. The SEC recognizes this and has turned it to their benefit. Commissioner Quevedo emphasizes the significance of technological innovation in enhancing regulation and the customer experience.
“I believe AI is the solution for future challenges, but do not assert that AI is the future itself. The future is in human contributions. As Steve Jobs said, your job won’t be replaced by AI, but by another individual who knows how to utilize AI. Therefore, it’s essential for us to adopt AI,” he explained in a blend of Filipino and English.
The SEC Commissioner also underscored the importance of financial literacy in the Philippines. As financial activities continue to bolster the economy, there is a pressing need for improved knowledge and education among Filipinos, particularly in financial management, spending, saving, and budgeting. This will empower them to make informed financial choices in their daily lives.
For the SEC, there is a clear need to enhance financial literacy at the high school level to promote financial education across the nation. The commissioner suggested that financial literacy could also be integrated into computer literacy, achievable through one or two-day workshops or seminars.
The SEC Philippines is on a promising path as a leader in innovation and digitization. “Today, the SEC has advanced remarkably from its initial steps towards digitization.” The commission is embarking on technological innovations like never before — more sophisticated, effective, and promoting ease of doing business.
For more details regarding the Securities Exchange Commission, please visit their website: www.sec.gov.ph.
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