With the Philippines remaining under varying degrees of quarantine due to the coronavirus disease 2019 (Covid-19) pandemic, a new Economist Intelligence Unit study for TransUnion finds businesses’ shift to digital could be permanent.
The report titled “New Dimensions of Change: Building Trust in a Digital Consumer Landscape,” released on Tuesday included responses from 1,610 executives in Brazil, Canada, Chile, China, Colombia, the Dominican Republic, Hong Kong, India, the Philippines, South Africa, the United Kingdom and the United States, including 115 Philippine executives.
The research uncovered how technologies like artificial intelligence (AI), national digital identification (ID) systems, and super-apps can help overcome hurdles and possibly create new challenges to building digital trust.
Results of the study showed that digital adoption is generally perceived as rising faster in the Philippines compared with the global average mainly due to the large adoption of social media and a growing e-commerce market.
The report noted that nearly 84 percent of Philippine executives surveyed as part of the study said they believe smooth transactions are “essential to business survival” rather than merely a competitive edge during and after the pandemic.
The report, however, said that despite the fast adoption, removing barriers to building bilateral digital trust is a must.
“Covid-19 has dramatically accelerated digital transformation with 78 percent of Philippine executives surveyed as part of our study saying their organization has changed their digital transaction process due to the pandemic,” said Pia Arellano, TransUnion Philippines president and chief executive officer.
“But all of this digital progress will be wiped out if we can’t remove these barriers to building bilateral digital trust. For instance, 70 percent of Philippine executives in the study who said their company changed their digital transaction process as a result of the pandemic experienced glitches,” she added.
Approximately 92 percent of Philippine executives say biometrics are likely to be used to authenticate the vast majority of payments in the next 10 years.
About 46 percent of Philippine respondents, meanwhile, noted that improved fraud detection and security is the greatest benefit to using AI.
The report further said that 84 percent Philippine respondents think national digital IDs will help fraud prevention in consumer transactions.
About 77 percent in the Philippines believe a national digital ID gives low-income groups access to consumer services they would have previously been excluded from.
The Philippine Statistics Authority (PSA) has started the pre-registration process for the Philippine national ID. As of October 20, more than 1 million Filipinos have taken the first step in registering with the national ID system.
“Ensuring consumer trust starts with preventing fraud. Our research overwhelmingly showed that biometrics, AI and national digital IDs aren’t just a fad for consumer fraud prevention. They are key for trusted commerce for the foreseeable future,” said Arellano.
According to the report, 82 percent of Philippine executives believe consumers are comfortable sharing personal data with private companies while 79 percent of the respondents think consumers are comfortable sharing personal data with governments.
“Technological innovations like AI, biometrics and national digital IDs paired with proven fraud prevention methods like device intelligence can provide a more convenient and inclusive way for consumers to transact that still protects security and privacy,” Arellano said.
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