THRIFT BANKS must put a premium on cyber resilience as they continue their digitalization to ensure their customers are protected from online threats that target financial services, a senior Bangko Sentral ng Pilipinas (BSP) official said.
BSP Deputy Governor Lyn I. Javier said the thrift banking industry remains robust, with lenders modernizing their operations to deliver financial services to the unbanked and underbanked sectors of the economy.
“But we must remain vigilant. Digitalization is not just about speed and convenience — it is about trust. And here’s the tension. Move too fast ahead of technology’s maturity, and your weak system will fail… Invest in digital resilience and governance. As you go digital, remember, technology without security is a risk,” Ms. Javier said in a speech at the Chamber of Thrift Banks’ General Membership Meeting in Makati City on Tuesday.
She said digitalization exposes the industry to online threats like cyberattacks, data breaches, identity theft, and even illicit fund flows, presenting potential vulnerabilities.
“The answer is clear: banks should innovate responsibly, prepare progress with consumer protection, guard data privacy, and strengthen cybersecurity [and] at the same time, stay vigilant in implementing robust AML/CTF (anti-money laundering/counter-terrorism financing) controls to keep these activities out of business. But security alone is not enough. In an environment of constant disruption, the real test is resilience. Resilience is no longer optional. It is our expectation,” Ms. Javier said.
“More than compliance, resilience must become a culture — one of foresight, preparedness, and shared responsibility. We must build resilience while staying relevant. Resilience and relevance enable us not just to safeguard our system, but to keep our approach forward-looking, adaptive, and responsive to the needs of a changing landscape… Smaller banks are increasingly being targeted by criminals who exploit weaker defenses. Robust AML/CTF controls, vigilance and monitoring, and a culture of integrity are shields that protect both your institution and your community.”
Ensuring the sector’s resilience is important as thrift banks’ support for households and micro, small and medium enterprises (MSMES) have helped improve financial inclusion and boost economic activity, Ms. Javier added.
“Your mission has always been to mobilize savings and extend meaningful long-term credit to households and SMEs, a vital link in our financial ecosystem. That mission remains essential today. Yet in a crowded financial market where services often overlap, thrift banks face the challenge of redefining their distinct identity,” she said.
She said thrift banks should put customers first as they are closer to those that need credit the most.
“Deliver products that are simple, fair, and transparent. In a market where bigger banks compete aggressively, your value is in the fact that you’ll understand and protect the everyday Filipino,” Ms. Javier said.
“In times of floods, typhoons, and disasters, thrift banks are often the first to open their doors along with other smaller banks. You play a vital role in helping families rebuild, farmers replant, and small businesses restore. That is aligned with the national push for climate adaptation,” she added.
The sector should also be agile and responsive to shifting risks, Ms. Javier said.
“The industry may have a modest share in terms of system assets but its impact is far from modest,” she said. “Your contribution to financial inclusion, household and MSME financing support continues, to power economic growth and stability.”
Thrift banks held P1.29 trillion in assets at end-July out of the banking system’s P27.74 trillion, BSP data showed. — K.K. Chan