01:05.1
The ASX 200 meanwhile owes its higher trade today on Australia's jobless rate rising above forecasts, erasing the risk of a rate hike.
01:17.3
The Philippine Central Bank is announcing its latest policy decision. Let's listen in.
01:21.1
Monetary policy decision.
01:28.5
Legating today, the Monetary Board decided to keep the BSP's target reverse repurchase rate at 6.5 percent.
01:38.2
The interest rate on the overnight deposit and lending facilities also remain at 6 percent and 7 percent, respectively.
01:47.6
The risks to inflation outlook continue to lean toward the upside.
01:53.4
Potential price pressures are linked mainly to higher transportation.
01:58.5
charges, food prices,
02:01.8
electricity rates,
02:03.1
and global oil prices.
02:08.1
indicate that inflation would settle
02:10.7
close to the upper end
02:12.4
of the target range.
02:15.0
The risk-adjusted inflation
02:24.0
in the previous meeting.
02:26.6
Meanwhile, the risk
02:28.4
adjusted inflation forecast for
02:37.5
Inflation expectations
02:42.2
Based on the latest GDP
02:44.3
data, the expected path
02:46.5
for domestic output growth
02:48.2
over the medium term
02:54.3
recent indicators
02:55.7
point to continued moderation
02:59.3
financial conditions.
03:02.0
The Monetary Board
03:03.4
deems it appropriate
03:05.3
to ensure sufficiently
03:07.4
tight monetary policy settings
03:09.6
until inflation settles
03:11.7
firmly within the target
03:15.6
Restricted policy stance will also
03:17.5
help keep inflation expectations
03:21.5
the possible build-up in
03:23.4
upside risks to future inflation.
03:26.7
The Monetary Board
03:27.7
reiterates its support
03:30.3
for the National Government's
03:32.2
non-monetary measures
03:33.7
to address persistent supply-side
03:36.2
pressures on food prices
03:38.3
and to prevent further
03:40.5
second-round effects.
03:44.5
the BSP remains ready
03:46.0
to adjust its monetary
03:48.2
policy settings as necessary
03:50.2
in keeping with its primary
03:52.2
mandate to safeguard
03:57.7
Thank you, Governor.
04:01.1
we would like to request
04:02.0
Deputy Governor Dakila
04:03.4
to elaborate on the BSP's
04:05.6
latest inflation forecast
04:07.3
for 2024 to 2025.
04:13.3
for this opportunity.
04:20.4
of the Monetary Board
04:30.8
that the risk-adjusted
04:32.7
inflation forecast
04:36.6
was adjusted downwards
04:45.2
on the monetary policy stance
04:52.1
for this meeting.
05:00.4
the opposite of the
05:09.2
present financial fantastic.
05:25.9
extent of riskpt often as it can or can't be in an economic system.
05:26.6
risks pertaining to higher transport charges, food prices, electricity rates, and global oil prices.
05:38.2
In our scenario building, we've also considered some factors that went into the baseline forecast
05:48.4
and these include the lower than expected actual inflation in April,
05:54.2
prospects of May inflation also being lower than what we had initially considered during the April monetary policy meeting
06:12.4
and that would lead to lower inflation forecasts for 2024.
06:19.5
But on the other hand, we do have higher global...
06:24.2
global crude oil prices and also non-fuel prices as well as the current slightly weaker peso
06:36.7
leading to an increase in the baseline inflation forecast for 2025.
06:51.1
Thank you, DG Datila.
06:53.1
We now proceed to the next question.
06:54.1
Thank you, DG Datila. We now proceed to the next question.
06:54.2
First of all, I then hand the floor to ourusalem to pick up the questions from the press and market analysts.
07:07.1
The Governor can take two to three questions and then for the rest of the questions, our panel may answer.
07:16.5
This will be the order of questions.
07:19.1
First, we will entertain questions from in-person attendees you to be followed by questions sent in advance.
07:22.4
And lastly, online or any additional questions.
07:23.4
We will begin with our media colleagues who are here today. Reminder. To raise your hand and wait for the microphone to be handed to you ...
07:23.5
And lastly, online or any additional questions.
07:23.6
name and identify your media
07:25.4
organization before asking your question.
07:33.5
questions from the floor?
07:39.1
Good afternoon, Gov. I'm Micah Arceo
07:41.5
from the Manila Times.
07:43.5
You've previously mentioned
07:45.2
that easing of rates is
07:47.2
possible by later this year
07:49.5
or early next year.
07:51.8
But since you adjusted your
07:53.3
inflation forecast for
07:55.5
this year downwards,
08:05.2
Is it still the same?
08:07.3
Thank you for that question.
08:09.4
We're actually somewhat
08:28.2
So the second half
08:34.6
Thank you, Governor.
08:36.1
Any other questions?
08:43.6
given that, given your
08:45.6
earlier statement, does this
08:49.7
cut will not happen
08:51.4
until the first quarter?
08:53.3
We haven't discussed
08:58.4
goes into the agenda
09:01.1
once we start easing.
09:05.0
Thank you, Governor.
09:06.9
Do you have any other questions from the floor?
09:13.4
Hi, Gov. This is Keisha from
09:15.2
the Philippine Star.
09:18.8
correct me if I'm wrong, but I think
09:20.8
the only meeting in
09:22.4
the third quarter is
09:24.3
on August. So would
09:26.4
you say that the BSP can
09:28.2
begin easing by August
09:32.3
Possibly by August of this year.
09:39.1
Do you have any other
09:48.7
elaboration, Gov,
09:49.8
why are you less hawkish?
09:53.9
then the second part of my question
10:02.6
you said before was
10:10.3
not going to happen anymore?
10:12.3
As you know, there was a good number
10:19.1
mainly driven by rise
10:22.4
also, 3.8% was better
10:24.4
than expected. And actually, it's
10:26.5
better than it looks because
10:30.8
base, positive base
10:34.4
effects. So it's actually
10:36.5
better than it looks. And then there were other
10:48.7
I'm afraid I have to leave. I have
10:50.6
an event to catch, but
10:52.3
thank you very much. The hard questions
10:55.8
Francis Tequila and
10:59.9
Zeno Abinola. Thank you.
11:02.8
Thank you, Governor.
11:10.7
Luisa Oxon from Business World.
11:12.8
Just to clarify, sir, did you
11:14.5
revise or keep your baseline
11:16.4
forecast for this year at
11:19.6
We did also have a
11:22.3
slight revisions on
11:24.3
the baseline forecast
11:36.2
previously, the new baseline
11:48.4
increased slightly
11:54.0
that went into the revisions
11:56.1
of the baseline are those that
12:00.1
earlier, and that the governor
12:03.5
mentioned lower than
12:06.2
expected actual inflation
12:13.3
Again, as the governor
12:16.1
mentioned, it's mostly also
12:18.0
because of base effects.
12:20.7
And actually, if you were to,
12:22.1
to look at the factors
12:24.5
behind that April inflation
12:26.5
number, more than half of that
12:28.7
is attributable to just one
12:30.6
commodity, which is rice.
12:33.1
So it's not really
12:36.9
inflation number.
12:40.7
upward revision in the
12:42.7
baseline forecast for
12:47.5
higher crude oil prices
12:53.9
also non-fuel prices,
12:56.4
and as you very well
13:02.3
slightly weaker band.
13:05.2
Thank you. Just one
13:06.2
follow-up, sir. In the
13:08.3
previous, in the BSP's previous statements,
13:10.7
you mentioned you see inflation
13:14.1
to above target in the next few months.
13:16.4
Since you've revised lower
13:18.1
your risk-adjusted and baseline
13:20.3
forecast, is that still the same?
13:22.1
That may still happen.
13:24.2
It will be, again, because
13:30.5
We're looking for, we
13:34.4
the inflation numbers carefully
13:36.2
then, but even if there were to be
13:38.8
some breach of the inflation
13:40.4
target band during those months,
13:42.8
the expectation is that that will
13:44.3
be temporary, and then there
13:46.3
will be a reversion back
13:58.3
Thank you, DG Dakila. Do you have
14:00.3
any other questions?
14:10.1
Did you clarify the 2025
14:12.1
baseline? Is it 3.3?
14:14.5
Did we hear you right?
14:25.9
I think if I remember correctly,
14:28.5
the BSP previously
14:29.6
forecast inflation to have
14:33.7
breached the upper end
14:36.0
of the target in the second quarter,
14:37.7
largely due to base effects.
14:39.4
Forecast inflation to breach
14:41.8
the upper end of the
14:44.0
target, and we haven't
14:46.7
We haven't seen it, but
14:52.0
previous question,
14:54.5
there can still be
14:55.7
some breach, especially
14:58.2
during the months of
14:59.7
May, June, and July.
15:01.9
So it will be still in the second quarter
15:04.2
of this year, and that's
15:10.1
After that, actually,
15:12.3
the base effects can go
15:14.3
in the opposite direction.
15:16.1
The base effects will be negative.
15:19.6
based on your forecast, we expect
15:22.0
inflation for this year
15:24.0
to peak by around June and July,
15:26.1
and then it will start
15:28.7
It should start tapering after that period
15:31.8
of time. Of course,
15:35.3
is in the absence of
15:38.1
further supply shocks.
15:44.1
in the press statement,
15:47.9
still emphasizing the risk
15:49.9
adjusted inflation forecast,
15:53.7
relative to the baseline.
15:55.9
The risk adjusted forecast for
15:57.7
this year is at 3.8%,
16:01.8
to the previous meeting
16:15.3
upper bound of the
16:17.3
inflation target band. We're now
16:19.6
more comfortable that
16:27.1
target, but it may still
16:29.2
be elevated depending
16:32.9
risk factors still materialize.
16:37.5
Thank you, DG Dakila.
16:40.1
Any more questions?
16:51.3
minutes of the last
16:52.5
meeting, there was
16:53.6
a part there saying
16:58.5
may moderate in the second half.
17:18.8
important thing there is
17:23.6
in the press release,
17:26.4
domestic output growth over
17:28.3
the medium term remains
17:31.0
That's what we have seen
17:37.1
remained in the forefront
17:41.1
growth numbers in
17:48.4
said in his earlier
17:58.6
were a little bit less
18:08.3
fourth quarter, there's a
18:12.2
an adjustment, a relaxation
18:14.8
in the monetary policy stance.
18:26.5
revert back to the target,
18:28.7
then it's going to be a
18:30.4
win-win situation for all.
18:34.8
Thank you, DG Tapila.
18:36.4
We have another question.
18:39.1
DG, if you look at
18:40.3
the new risk adjusted
18:42.5
and the baseline forecast for
18:45.4
adjusted it upwards from
18:50.2
gives BSP confidence
18:52.1
that raising rates as
18:54.2
early as August would not...
18:56.4
Raising the rate...
18:59.8
as early as August
19:03.2
would not reverse all the
19:05.8
gains made by the
19:08.4
the monetary board
19:18.7
Of course, it will have,
19:20.2
to take into account
19:21.8
all the latest available
19:24.0
information at the time that
19:26.1
the monetary policy
19:35.0
the April number was actually
19:42.2
better than what was
19:44.0
initially expected.
19:50.2
how the moderation
19:54.0
in inflation progresses
20:13.9
weight does BSP place
20:16.1
in terms of supporting
20:19.9
Because Q1 growth
20:22.9
It's below target
20:24.5
what the market expected.
20:28.8
respectable number.
20:30.4
It's among the fastest
20:38.8
among the economists
20:49.9
main consideration,
20:52.8
would be how inflation
20:55.6
progresses with respect
20:59.2
Because we want to,
21:01.0
as already been mentioned
21:03.7
also in the policy statement,
21:11.8
you want to ensure
21:15.0
sufficiently tight
21:16.4
monetary policy settings
21:19.9
So that inflation
21:21.9
within the target range.
21:28.9
it is still below
21:30.9
of the national government.
21:32.9
Yeah, but it should
21:34.9
Growth numbers should
21:38.9
global environment.
21:46.9
global environment.
22:00.9
the global growth
22:09.9
the global growth
22:56.9
Philippine Central Bank
22:57.9
leaving benchmark
26:14.9
among governors in the U.S. Fed as well.
26:18.5
Okay, so Manny, you know what rate cutting course are you now seeing for the BSP?
26:24.1
They said possibly August, possibly third quarter, even fourth quarter,
26:28.6
but definitely not the first quarter of 2025 as many had feared just weeks ago.
26:34.9
Are we likely to stem those rates sooner than later?
26:37.5
U.S. will, you know, movements in the U.S. Fed will, I think, precede any rate cuts, if any, by the BSP.
26:51.6
Now, there's a reason for that.
26:53.8
I think what the BSP will try to do is, you know, they're very sensitive on interest rates and how it affects everyone,
27:02.6
but they are equally sensitive on the peso-dollar rates.
27:07.5
If they preempt a rate, you know, a rate cut with the U.S. interest rates remaining where they are,
27:15.0
it might have a negative impact on the peso-dollar rates.
27:18.9
So they're going to calibrate their movements around that.
27:23.1
Okay, now peso weakness, and speaking of that, it remains a focal point, of course,
27:27.2
in the decision to keep borrowing where it's steady, as we've learned.
27:30.8
Now, is the recovery of the peso stalled by better economic conditions convincing the positive numbers
27:36.7
they've been receiving?
27:37.5
Now, how long do you foresee this weakness of the Philippine peso to persist?
27:42.6
You know, we're taking a close look at, you know, why is the peso booming the way it is recently?
27:51.4
And there seems to be...
27:53.8
That seems to be driven by commercial transactions more than anything else standing.
28:00.0
So commercial transactions would be importation.
28:02.5
So when you have that, that means...
28:07.5
So, you know, the backstreet canvas are saying, you know, commercial transactions are picking up demand
28:18.2
for the dollar to buy goods rather from abroad seem to be there, seem to be a trend,
28:27.0
which is normally something we would see towards the second quarter or, you know,
28:33.0
the end of the second quarter, building up inventories for third quarter,
28:37.5
or fourth quarter of this year.
28:39.0
Having said that, Manny, is that an evidence, sort of evidence, in fact,
28:43.4
that the economy is more robust and vibrant now because of all that spending in dollar?
28:50.8
Well, not necessarily.
28:52.6
It's a, it might be a cyclical pickup, but standing.
28:57.8
That came earlier.
28:58.8
That's some kind of indication on whether is it being driven by investments, activity, or consumer spending.
29:06.8
Okay. That came earlier. That's some kind of indication on whether is it being driven by investments, activity, or consumer spending.
29:07.5
You know, and again, for consumer spending, you see, you know, importations still being a factor there.
29:16.1
Yes, Manny, still on softer than expected U.S. inflation data.
29:19.3
It is, of course, a source of euphoria now in markets in the U.S.
29:22.5
But for those outside, like ours, I mean, how must one process softer inflation in the U.S.?
29:28.6
Because everyone's really talking about earlier Fed cuts and that the BSP will mirror that.
29:33.4
But what's the caveat?
29:37.5
The caveat is, you know, it's something that is not sustained.
29:43.6
That's always a fear is, do we have a sudden blip up later on in the year?
29:48.8
For example, inflation.
29:51.1
So, we'll see how, you know, I think we'd like to see inflation come down on a sustained basis in the U.S.
30:02.5
for maybe the Fed to consider doing rate cuts.
30:07.5
Take a look at that.
30:08.3
Maybe two months of sustained declines in inflation should provide some kind of basis already for some optimism about we're addressing the inflation problem.
30:21.4
Okay, Manny, you know, the BSP pronouncement may have been late in the day for the market to really react.
30:27.5
But did the market appreciate at least the stateside developments based on how we perform today?
30:32.4
Oh, yes, definitely.
30:33.4
I think we practically matched the movements.
30:39.0
Dow Jones up by about 0.88, 0.9%.
30:44.6
So, we're mirroring that on the broader scale.
30:48.0
Yeah, I think the U.S. market on a broader basis went up more than 0%.
30:52.9
So, we're mirroring that.
30:56.3
And tomorrow, of course, we will see how the market's reacting to the less hawkish stance of the Banco Central ng Pilipinas.
31:03.9
What do you think?
31:04.8
What direction would that lead to?
31:07.5
We're coming off from, you know, maybe there's still some room for a pickup.
31:13.8
I think 6,800 is the resistance we're seeing for the market.
31:21.5
So, you know, maybe 100 plus points upside there.
31:26.6
Lastly, Manny, we're done with the majors, you know, GDP data.
31:31.8
We're done with inflation and done with BSP policy.
31:34.3
From here, what do you see that can move?
31:37.5
The market in either direction now?
31:40.3
It's really, you know, corporate performance now.
31:42.9
So, we're tracking very closely announcements, et cetera, about, you know, shall we say, corporate deals, acquisitions, et cetera,
31:55.9
starting to come out or hatching this second quarter to third quarter.
32:00.9
That should provide some kind of impetus, shall we say, for...
32:07.5
movement either way in the market.
32:10.5
And we'll see how the market reacts tomorrow.
32:12.9
Again, Manny Ocampo, Senior Managing Director of ICCP.
32:16.6
Thank you so much for your time and for the insights today.
32:21.7
Corporate stories now.
32:22.7
San Miguel Corporation's consolidated net income down by half in the first quarter.
32:26.5
It stood at 8.87 billion pesos from the 17.7 billion last year.
32:33.1
SME or SMC says this was mainly on forex losses.
32:37.5
Which it adds was partly offset by improved operations in its business segments.
32:42.7
Sales and gross profit, however, were both higher.
32:46.4
Next, GT Capital's core net income rises to 7 billion pesos.
32:51.0
This on the back of record performance by Metro Bank, which chipped in 12 billion pesos in net income.
32:58.9
Also, drivers of growth, Toyota Motors, AXA, Philippines Life, and Federal Land.
33:05.7
As for Flutas Holdings,
33:07.2
its net income climbed by over 50% to nearly 30 million pesos while revenues grew to 640 million.
33:15.3
Its largest subsidiary, Flutas Group, pushed profits higher along with expansion of its Lingnam restaurant business,
33:22.7
which Lester Hughes firm acquired in 2022.
33:26.8
To Global Ferro Nickel now, it suffered a 93% decline in net income from over 150 million pesos to just 10 million pesos this year.
33:37.2
Mining revenues were also down on lower selling prices, which more than offset higher sales volumes.
33:43.6
Moving forward, F&I vows to boost productivity and beef up cost efficiency measures.
33:51.0
We're stepping aside for a short break.
33:53.0
When we return, unconsolidated jeepney drivers urge to refrain from plying their routes as governments crack down on so-called color vehicles.
34:37.2
Welcome back to the Business Show Show.
34:38.7
China commits to strengthening ties with Russia as leaders of the two nations began a series of talks in Beijing.
34:45.0
Russian President Vladimir Putin arrived in China Thursday for a two-day state visit.
34:50.0
Chinese media reports President Xi Jinping vowed Beijing would remain a good partner to Russia.
34:56.2
He is said to have told the Russian leader that China is committed to upholding fairness and justice in the world.
35:01.4
The Kremlin had previously said the talks between Putin and Xi would involve Ukraine, Asia, as well as energy and trade.
35:10.6
This is Putin's first foreign visit since he began a fresh six-year term in an election deemed by the world as a sham.
35:20.5
Total foreign investments in the Philippines see a significant decline in the first quarter.
35:25.0
Our numbers that matter today is from the Statistics Bureau.
35:27.9
It said such investments amounted to just $100.
35:31.4
It said $148 billion from the $108 billion in the same period last year.
35:39.2
Singapore had the most investment commitment, followed by the Netherlands and South Korea.
35:44.2
The approved pledges were mostly on energy, accommodation, and manufacturing.
35:49.1
The Southern Tagalog, Central Luzon, and Bicol regions got the biggest share in the investment pledges.
35:56.3
The main convoy of a Philippine civilian mission no longer pushing through.
36:01.4
Scarborough Shoal mission.
36:03.1
That's after being harassed by Chinese Coast Guard vessels.
36:06.6
But the Atenito Coalition is still declaring mission accomplished
36:09.5
after an advance team was able to breach the Chinese blockade
36:13.7
to distribute food and fuel to Filipino fishermen in the area.
36:18.8
Earlier, China's foreign ministry reiterated its claims Scarborough Shoal is part of China's territory
36:24.2
and that it is ready to defend its sovereignty.
36:29.1
President Marcos leads the distribution of...
36:31.4
aid to farmers and fisherfolk affected by the El Niño phenomenon in Iligan City.
36:36.1
Each beneficiary received 20,000 pesos and 5 kilos of rice in government assistance.
36:43.3
The president has been making the rounds of areas hit hard by the extended rice spill.
36:49.0
His recent stops include Zamboanga City, General Santos, and Sultan Kudarat.
36:57.7
Napaka-espesyal po ng Northern Mindanao.
37:01.4
Sa pagkat isa po ang inyong lugar na nagbigay na di matatawarang suporta sa akin noong nakaraang halalan.
37:14.4
Buli, maraming salamat po sa inyong tiwala sa parte naman ng pamahalahan.
37:21.7
Makakaasa po kayo na patuloy ang aming mga programa at proyekto upang mas mapabuti
37:28.3
ang pamumuhay ng mga mamamayan sa region.
37:31.4
Ngunit, nahaharap din ang ating bansa sa matinding tagtuyot na balakit sa ating kaunlaran.
37:40.6
Kaya nga po, ang ginagawa natin ngayon ay sinusuyod natin ang buong kapuluhan
37:47.2
upang maghatid ng tulong sa mga napinsala ng matinding tag-init at tagtuyo na nangyayari sa El Niño.
37:56.2
Kaya napansin ng aking may bahay.
37:59.6
Nagka-sunburn na daw ako sa kakabimutan.
38:01.4
Ibigay ng tulong.
38:02.8
Pero wala tayo magagawa.
38:04.8
Ito talagang kulay ng mga Ilocano.
38:07.3
Sana'y mabilad sa araw.
38:09.9
Lalo na kung ito ay para magsilbi sa taong bayan para sa inyo.
38:17.2
Cheap-need drivers and operators who failed to consolidate as part of government's PUV modernization program
38:23.4
urged to refrain from plying their routes.
38:26.1
This as transport authorities begin their crackdown today on so-called Colorum vehicles.
38:31.4
The Transportation Department warrants unconsolidated drivers to continue their operations
38:36.1
will face hefty penalties and a one-year suspension.
38:42.1
Ikaw na mismo ang kusang operator na hindi nag-consultate.
38:46.1
Alam mo na na hindi ka dapat sa kalye.
38:48.8
Dapat hindi ka na pumapasada noon pa.
38:51.7
Dahil ang pinakmagbigat dito is pag nahuli ka, malaki ang penalty.
38:57.4
Revocation pa ng driver mo.
38:59.2
Ang tagal na ng panahon na binigay ng gobyerno.
39:01.4
In fact, seven extensions po yung ginawa ng gobyerno.
39:04.9
Nung nakaampang administration po ito, I think they had enough time to really, really think.
39:11.6
And just to be clear po, nag-decide po sila ha.
39:14.7
Less than 20% po ang nag-decide or way less than 20% ang nag-decide na hindi nag-consolidate.
39:20.4
So I think binigyan naman po natin silang panahon.
39:25.5
68% of Filipino consumers were targets of digital fraud attempts from September to December.
39:31.4
This is according to the latest digital fraud study by TransUnion Philippines.
39:37.6
Filipinos reported receiving these digital fraud attempts through email, phone calls, and text messages.
39:44.8
The Philippines is also one of the five countries with suspected digital fraud rates above the global average of 5%.
39:51.4
Now, globally, suspected digital fraud cases more than doubled between 2019 and 2023.
39:59.2
This means the rising number of positive cases will increase.
40:01.4
Possible digital fraud cases outpaced the growth of the overall digital transactions.
40:09.1
A 2023 report by global tech firm Rocket Software found majority of IT leaders are turning to hybrid cloud solutions to solve their company's tech challenges.
40:19.9
Now, this allows firms to save money and resources by migrating its mission critical content to a mixed computer environment.
40:29.1
Now, Rocket Software is vice president for Asia Pacific.
40:31.9
Praveen Kumar joins us today to discuss the importance of the hybrid cloud amid rising cases of digital fraud.
40:39.7
Good afternoon to you, sir.
40:41.5
Good afternoon, Stanley. How are you?
40:43.1
I'm good. I hope you're fine as well.
40:45.3
Pretty good. Thank you.
40:46.5
Okay, let's parse first through interesting stats based on the state of the omni-channel fraud report,
40:52.3
which is saying 68% of Filipino consumers reportedly being targeted with online email, phone call, or text messaging fraud attempts.
41:00.0
That's from September to December.
41:01.4
December last year.
41:02.7
Now, what do you attribute this concerning vulnerability of Filipinos to online fraud?
41:08.4
I think it's not only a Filipino thing.
41:10.8
It's a global phenomenon where customers are being targeted by various entities in terms of trying to extract funds or divert funds which are supposed to be sent to a particular entity.
41:25.0
And this is something that anybody has been, everybody has been doing it for quite some time.
41:31.6
But with the adoption of digital, which has outgrown every aspect of thought that anybody had, it has just become worse.
41:39.7
So, I think most banks, most entities are spending a lot of time trying to educate their customers to prevent themselves from phishing attacks,
41:49.4
to prevent themselves from downloading content which can be making them very vulnerable in terms of sending funds where they're not supposed to be sending or spending money where they're not supposed to be spending.
42:01.4
Identity-based fraud is accelerating as cybercriminals, of course, harvest more stolen identity information from organizations and resources educating the public, its consumers, against, you know, cyber security.
42:14.0
While the learning curve takes a bit of time, in fact, not everyone in the country has already accepted or embraced technology.
42:24.4
So, they're both learning the technology itself and learning how to secure themselves from threats.
42:30.2
So, what inferences?
42:31.4
What are you getting out of this reality?
42:34.2
So, this is not going to change.
42:36.1
The reason is people are finding new ways to con people, right?
42:40.4
So, end of the day, if you are supposed to visit a website which has rocketsoftware.com, you know, if I just make rocketsoftware-dot-com, that is a website.
42:51.5
So, when you look at it, it looks like rocketsoftware.com and then you just click on it and it takes you to a different website.
42:56.5
The same goes with a bank that you would have in the Philippines or an e-commerce site that you're transacting.
43:01.4
And the page looks very similar.
43:04.0
So, phishing attacks need to make sure that they are aware about challenges like these where they can be exploited.
43:11.1
One of the key things they have to make sure is also have access to that data which customers can or partners can at any point of time.
43:19.9
And that's where hybrid cloud as a strategy comes in where enterprises need to make sure that certain content is accessible to their partners and customers
43:30.2
while certain content is not.
43:31.4
And then they apply thresholds on that content as to how much can you transfer, how much can you download, what kind of content is visible, how can you redact so that all personal data is not explored or exploited.
43:45.0
So, those are things that enterprises, banks, and insurance companies both in the Philippines and outside are spending a lot of effort trying to secure at the same time make it accessible.
43:57.5
Now, this calls for the implementation, of course, of smarter, more effective fraud prevention.
43:59.0
So, that's the first step.
43:59.5
So, that's the first step.
43:60.0
So, that's the first step.
44:00.5
So, that's the first step.
44:01.0
So, that's the first step.
44:01.0
So, that's the first step.
44:01.4
So, that's the first step.
44:03.2
So, that's the first step.
44:04.1
To build trust in the omni-channel customer experience.
44:08.4
Now, how would you describe acceleration as far as institutions, businesses?
44:12.8
How are they responding to this threat?
44:15.4
Are they prioritizing products like these now?
44:19.3
So, security is top priority for everybody.
44:22.5
And also, the central bank does spend a lot of effort in trying to make sure that entities which deal with customer finances,
44:30.4
whether it be insurance,
44:31.4
or banks are extra secure
44:34.5
because the leakages of these funds
44:36.5
not only impact the trust on digital
44:39.3
because one of the biggest challenges,
44:42.0
everybody's adopting digital
44:43.2
but they're also very afraid
44:45.0
that they'll lose all the funds that they have.
44:47.3
So as you want to enable more adoption of digital
44:50.6
which is more profits for the enterprise
44:53.6
as well as more enablement for the country,
44:57.7
they have to make sure that
44:59.4
these implementation of more enablement of digital
45:03.7
does not result in everything getting exposed.
45:08.1
So companies have security at top mind
45:10.9
as much as the central bank,
45:12.3
as much as the government tends to prioritize
45:14.9
how privacy as well as security
45:17.3
is one of the first things
45:19.8
that most financial institutions have to implement
45:23.4
and that's where when you have companies
45:25.7
which have legacy products in the enterprise
45:29.4
and they want to modernize
45:30.8
at the same time on the cloud,
45:32.7
we come in from a rocket software perspective
45:35.0
enabling such solutions
45:37.0
where they can duplicate content
45:39.1
which is relevant
45:40.0
and make sure certain content
45:42.3
which should not be shared
45:44.1
doesn't get shared at the same point of time.
45:47.3
Now, rocket software, of course,
45:48.8
provides services to industries
45:50.3
helping them solve their most complex IT challenges
45:53.4
across infrastructure, data, and applications.
45:56.7
Now, how much progress are you making in the Philippines?
45:59.4
What kind of, you know,
46:00.7
milestones are you looking at for this journey here?
46:03.6
So, most of the top banks in Philippines
46:06.5
have a complicated infrastructure in the back end.
46:10.8
You know, they have something like
46:12.9
a mainframe which is sitting
46:14.9
which the end consumer would never see
46:17.1
and at the same time,
46:18.6
they want to have the best mobile apps
46:20.5
where people can transfer peer-to-peer
46:23.3
or make sure that they transact
46:28.7
by term insurance,
46:29.4
or even at the same time
46:31.6
to share trading, etc.
46:33.3
from a mobile app.
46:34.5
So, the end consumer
46:36.2
or the end entity
46:38.1
that is transacting with such enterprises
46:40.8
doesn't care what's in the back end.
46:42.7
But if you look at it from the banks
46:44.5
and the insurance companies,
46:46.1
they've grown over years.
46:48.9
they've had legacy products
46:50.3
which are sitting there,
46:51.8
legacy solutions which are sitting there,
46:53.4
and they have to cater to this modern entities
46:55.6
that are transacting with them.
46:57.9
And that's where we come in,
46:59.4
trying to offer a blended solution
47:02.3
which sits both on-prem
47:04.2
as well as in the cloud
47:05.5
and make sure there are security enhancements
47:08.4
that are put in place
47:10.4
so that what goes on the cloud
47:12.5
for users to transact on
47:15.6
is different from what is there
47:18.3
So, as much as enterprises
47:19.7
migrate to something like a hybrid cloud
47:22.5
which is on-prem and on the cloud,
47:25.5
they are very concerned
47:26.6
on what kind of data goes from here to there,
47:29.4
how these data is separated,
47:31.7
which data access can be given to end consumers,
47:36.1
which data can be given to partners
47:37.9
because there will be a lot of business entities
47:40.2
who resell solutions of these enterprises,
47:43.9
and how that entire community comes together
47:48.3
within the enterprise
47:49.8
between on-prem and on the cloud
47:52.9
is fairly complicated
47:55.6
but simplified by Rocket Software.
47:59.4
Alright, Mr. Praveen Kumar,
48:01.2
Vice President for Asia-Pacific of Rocket Software,
48:04.7
thank you so much for joining us this afternoon.
48:07.3
Have a great day.
48:12.3
And those are the latest in all things business.
48:14.7
I'm Stanley Palisada.
48:15.8
Subscribe to the ANC YouTube channel,
48:17.4
like us on Facebook,
48:18.3
follow us on Twitter,
48:19.1
and join us again tomorrow
48:20.2
for another edition of The Business Rojo.
