1 month ago
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Keisha Ta-Asan - The Philippine Star
February 9, 2025 | 12:00am
MANILA, Philippines — Security Bank Corp. is ramping up its artificial intelligence (AI) initiatives, embracing both traditional and generative AI (Gen AI) to enhance operational efficiency, customer experience and innovation.
In a recent media roundtable, Security Bank president and CEO Sanjiv Vohra said the bank is heavily engaged in AI.
Traditional AI, which includes machine learning and data analytics, has been a part of banking operations for many years.
Security Bank has leveraged AI-driven propensity models, credit decision-making tools and fraud risk analysis to streamline processes and improve risk management.
“We continue to use traditional AI, applying it to credit decisioning models and fraud detection,” Vohra said.
On generative AI, Security Bank was among the first companies in the Philippines to gain early access to Microsoft’s 365 Copilot, a Gen AI-powered tool designed to enhance workplace productivity.
The Asian Development Bank (ADB) was the only other Philippine entity selected for the program, placing Security Bank in an exclusive group of 600 organizations globally.
This early adoption has allowed Security Bank to integrate AI-driven tools into its internal operations.
“We got an early start embedding AI into our employees’ communication channels,” Vohra said.
“We are now developing a roadmap to incorporate Gen AI into the bank’s processes, focusing on three key elements: improving efficiency, enhancing customer experience and driving innovation,” he added.
One of the bank’s most significant AI-driven advancements has been the launch of “Atlas,” an AI-powered chatbot supporting the bank’s technology help desk. Atlas has greatly improved efficiency by reducing manual workloads and accelerating report generation.
“In terms of report generation, what used to take a couple of hours now takes less than a minute,” Vohra said. “That’s a massive improvement.”
The implementation of AI tools like Atlas highlights the bank’s commitment to using cutting-edge technology to optimize internal processes and free up employees to focus on more complex tasks.
Investments and future plans
Security Bank has significantly increased its technology spending in recent years, with a major ramp-up beginning in 2023 and continuing in 2024.
However, Security Bank chief financial officer Eduardo Olbes said spending growth would likely moderate in 2025 as the bank shifts focus toward monetizing past investments.
“Our current tech spend is approximately 17 percent of total revenues,” Olbes said.
“Many of the digital transformation initiatives started in 2023. Now, we’re ensuring that these investments translate to bottom-line profitability by helping customers fully benefit from the changes,” he said.
The bank also remains committed to key investment areas, particularly branch expansion. While certain initiatives are stabilizing, branch growth is accelerating.
“This year, we’re growing our branches and next year, that will almost double,” Olbes said. “Our goal is to reach about 400 branches.”
Security Bank’s approach to AI and technology investment is a balancing act between innovation and financial sustainability. While AI adoption continues to advance, the bank is also keen on ensuring that these investments deliver measurable benefits.
As AI technology evolves, Security Bank is positioning itself as a leader in digital transformation within the Philippine banking sector. By leveraging AI for efficiency, customer experience, and innovation, the bank is setting a new standard for tech-driven financial services.
The lender booked a 12-percent increase in net income to P8.55 billion in the first nine months of 2024 versus a year-ago level of P4.83 billion amid higher revenues.
For the third quarter alone, net earnings rose by 14 percent to P3 billion year-on-year. On a quarterly basis, the bank’s profit inched up by seven percent.
Security Bank is the country’s seventh largest lender in terms of assets with P1.3 trillion as of September 2024. The 74-year-old bank has 334 branches and 678 ATMs nationwide.
