Thank you so much for joining us in this interview series. Before we dive into our discussion our readers would love to “get to know you” a bit better. Can you share with us the backstory about what brought you to your specific career path?
With over three decades in banking and finance, I’ve experienced the sector’s significant technological shifts firsthand. My career, spanning from manual transaction processing to the dawn of digital banking, sets the stage for my current role leading SAFC’s foray into AI-driven analytics.
As President and Managing Director at SAFC, I am steering our transition towards AI to enhance operational efficiency and customer engagement. This ongoing integration aligns with our mission to innovate continuously and adapt to emerging technologies. My hands-on approach ensures that we leverage AI not just for immediate gains but for sustainable growth.
My proactive approach to AI adoption along with my extensive business knowledge give me unique insights into successfully navigating the financial industry’s AI transformation. In an effort to assist other leaders in getting ready for and thriving in an AI-enhanced future, I look forward to sharing workable tactics and insights gained from our experience.
What do you think makes your company stand out? Can you share a story?
At SAFC, our mission to make Filipino lives better distinctly sets us apart in the financial sector. We’re not just a company focused on profitability; we are deeply invested in the welfare of our clients and the broader community. This commitment is exemplified through our innovative products like the Sangla ORCR, an Auto Equity Loan that enables car owners to borrow against their vehicle’s official receipt and certificate of registration without surrendering their unit. This product offers a tangible solution for immediate financial needs while allowing our clients to retain possession of their vehicles, thereby supporting their mobility and livelihood.
Approximately seventy percent of our portfolio is devoted to helping SMEs. We work to empower these businesses with specialized financial solutions because we recognize the critical role that they play in the community economy. Furthermore, the number of participants in our exclusive Loan Consultant Program has increased to around 5,000. Through this program, ordinary Filipinos can refer clients to us and earn commissions for a living. This is an excellent way for many people to boost their income, particularly during these hard times.
Our commitment to community involvement is further demonstrated by SAFC Heroes, our corporate social responsibility arm. It is driven by employee volunteerism and concentrates on community development, environmental sustainability, and wellness promotion. Through these efforts, we not only contribute to societal progress but also foster a sense of purpose and community among our team.
Furthermore, we encourage our staff to think like entrepreneurs by giving them a profit-sharing incentive that allows them to participate directly in the company’s success. This approach not only motivates our team to excel in their roles but also aligns their contributions with the company’s overall performance, creating a shared commitment to excellence and innovation.
You are a successful business leader. Which three character traits do you think were most instrumental to your success? Can you please share a story or example- for each?
In my role as President and Managing Director of SAFC, these three character traits have been particularly instrumental to my success:
1. Commitment
My commitment stems from a strong sense of duty to the company and its larger goal of improving the lives of its clients. Early in my position, I led efforts that improved our service delivery and operational effectiveness to a great extent, which had a direct effect on our development as well as the satisfaction of our clients and staff. Every choice I’ve made has been informed by this unshakeable commitment, which makes sure that long-term value is constantly given precedence over immediate profits.
2. Passion
Passion energizes me to tackle challenges with enthusiasm and perseverance. For instance, when we launched our innovative Sangla ORCR product, it was my passion for financial inclusivity that drove the project. Seeing how our services benefit individuals and small business owners has motivated me to continue leading with enthusiasm and vision and to always look for ways to improve what we have to offer.
3. Accountability
I hold myself accountable for the well-being of our company and its stakeholders. This trait was particularly tested during the financial challenges of recent years. By taking responsibility for strategic decisions, including the implementation of new technologies and restructuring of business processes, I ensured that SAFC remained effective and responsive to market changes. Maintaining accountability means creating a resilient and transparent organization by learning from failures as well as acknowledging achievements.
These traits not only align with SAFC’s core values I ACT with Passion and Excellence (Integrity, Accountability, Commitment, Transparency, Passion, and Excellence), but also reinforce the personal responsibility I feel towards our mission. They drive me to lead by example, inspiring a culture of dedication and ethical leadership across the organization.
Let’s now move to the main point of our discussion about AI. Can you explain how AI is disrupting your industry? Is this disruption hurting or helping your bottom line?
In the Philippines, the integration of AI within Non-Bank Financial Institutions like SAFC is still in the early stages, but its transformative potential is clear and compelling. Here at SAFC, we have begun look into how artificial intelligence (AI) can transform our procedures, especially with regard to operational effectiveness and accuracy in credit assessments. Even though the use of AI in our industry is still relatively new, current conversations highlight how crucial it will be in determining the direction financial services go in the future.
The expected benefits of AI for SAFC include streamlined operations and reduced turnaround times, which directly improve our bottom line. We want to improve our capacity to evaluate credit risks precisely so that we can lower default rates and maximize our loan portfolio by putting AI-driven analytics into practice. This change is expected to bring about both financial gains and operational improvements, which will enable us to provide our clients with more efficient and timely service.
As we integrate AI, the challenge lies in managing the transition, including the necessary investments in technology and training. These difficulties are, nevertheless, surpassed by the chances AI offers to strengthen our competitive edge. I think that adopting AI is a strategic move that SAFC must make to develop significantly and become profitable in the long run. It also represents a critical milestone in our ongoing evolution as a financial sector leader.
Which specific AI technology has had the most significant impact on your industry?
In the financial services industry, artificial intelligence (AI) has considerable promise, yet the applications of AI vary widely throughout businesses. Even though SAFC is currently in the early phases of planning its AI integration, we actively follow developments in the field that have had a big worldwide impact on our business.
AI technologies that promise substantial benefits to financial institutions include machine learning models for enhanced credit scoring and risk assessment. These models enable more accurate predictions based on broader data sets, potentially reducing defaults and improving portfolio quality. Another promising area is customer service automation through chatbots and virtual assistants, which can offer 24/7 customer support and streamline client interactions.
As we contemplate the full integration of AI into our operations, our focus remains on understanding and adapting these technologies to fit our unique context and customer base. The transition to incorporating AI is approached with meticulous planning to ensure alignment with our strategic goals and commitment to enhancing service delivery while maintaining the high trust of our clients. This cautious yet forward-looking approach ensures that when we do implement AI, it will be in a manner that genuinely augments our capabilities and drives tangible improvements in our service offerings.
Can you share a pivotal moment when you recognized the profound impact AI would have on your sector?
At SAFC, while we are still in the planning stages of integrating AI into our operations, I realized the profound potential impact of AI during a series of strategic planning sessions where we discussed the future of digital banking and finance. It was during these discussions that we explored various case studies demonstrating AI’s transformative role in enhancing customer service and operational efficiency in other markets. This exploration made it clear that AI technology could significantly streamline our credit assessment processes, reduce operational costs, and improve our service delivery, ultimately enhancing our competitive edge in the financial sector.
This realization has motivated us to start establishing the foundation for AI integration, concentrating on areas where AI can yield the greatest returns right away, such automating repetitive processes and enhancing our capacity for data analysis. We understand the need for a careful balance between technical innovation and preserving the personal touch that our consumers enjoy, therefore we are cautiously enthusiastic about the change. This strategy makes sure that, as we advance, we not only stay up with advancements in the market, but also improve our capacity to provide our clients with efficient service.
How are you preparing your workforce for the integration of AI, and what skills do you believe will be most valuable in an AI-enhanced future?
At SAFC, we are keenly aware of the impending integration of AI and the necessity to prepare our workforce accordingly. We are in the early phases of creating customized training programs since we understand the vital role that ongoing learning and growth play. Through these efforts, we hope to provide our staff members with a fundamental grasp of AI technologies, their uses, and the advantages they can offer to both day-to-day work and broader business operations.
To enable a seamless shift to more AI-enhanced operations, we are concurrently concentrating on change management. Establishing a culture that values open communication is crucial if you want staff members to voice their worries and understand that AI will complement their duties rather than take them over. We want to foster adaptability and buy-in from our workforce from the beginning, as these are essential for utilizing AI to improve productivity and decision-making within the organization.
Ultimately, the skills that will hold the most value in an AI-enhanced future at SAFC are adaptability, problem-solving, and analytical thinking. By putting more emphasis on these areas in our development programs, we ensure that SAFC stays at the forefront of the financial services sector by equipping our staff to flourish in a developing digital world in addition to being able to adapt to new technology.
What are the biggest challenges in upskilling your workforce for an AI-centric future?
As we navigate the transition towards an AI-enhanced future at SAFC, several challenges stand out prominently. First and foremost, identifying the specific skill gaps within our workforce is critical. This involves a detailed assessment of current competencies and pinpointing the AI-related skills we need to develop. This step is vital to tailor our training programs effectively and ensure they are relevant and impactful.
Furthermore, there is a clear knowledge and comprehension gap regarding AI among our employees. Many people may find the idea of artificial intelligence (AI) and its implications intimidating, which could cause them to resist or be wary of adopting new technology. We are dedicated to improving our internal communications and educational initiatives in order to address this. By demystifying AI and showcasing its advantages and useful uses in our daily work, we hope to encourage our team members to be more proactive and open-minded.
Finally, incorporating AI into our current procedures is a difficult task. Adopting new technology isn’t enough; we also need to make sure it improves our operational procedures and doesn’t interfere with our ability to provide services. This calls for careful preparation, a step-by-step implementation strategy, and continuous modification in response to input and performance indicators. With these initiatives, we hope to guarantee that the use of AI promotes efficiency, enhances the quality of services rendered, and ultimately raises the value we offer to our clients.
What ethical considerations does AI introduce into your industry, and how are you tackling these concerns?
In the financial services industry, the introduction of AI technologies raises crucial ethical considerations that must be navigated carefully. Foremost among these is the potential for job displacement. As AI automates routine tasks, there’s a real risk that roles traditionally filled by human employees might be reduced. However, at SAFC, we’re committed to mitigating these effects by focusing on upskilling and reskilling our workforce. This strategy is about transforming potential job displacement into an opportunity for employees to engage in more complex, rewarding roles that AI technology can’t replicate.
The topic of data security and privacy is particularly significant. Because AI can process and analyze vast amounts of data, there may be worries about how this data is handled safely. In order to solve this, we are putting strong access restrictions and sophisticated encryption in place as well as other data protection measures to guarantee that all client data is kept private and safe. Our strategy complies with regional data protection regulations, guaranteeing compliance and preserving our clients’ faith in our management of their private data.
What are your “Five Things You Need To Do, If AI Is Disrupting Your Industry”?
In an era where AI is reshaping industries, it is paramount for leaders to strategically harness this technology to ensure their companies not only survive but thrive. Here are five critical actions to take:
1. Strategic Investment in AI
SAFC is exploring strategic investments in AI, particularly in enhancing credit assessment processes to reduce risk. This approach mirrors significant industry movements, notably Microsoft’s strategic partnership with OpenAI. Microsoft made a $10 billion investment in OpenAI in 2023, gaining a minority stake that demonstrated their dedication to developing AI technologies. Through this collaboration, Microsoft will soon be able to incorporate cutting-edge AI research into a wider range of services and products, demonstrating the value of strategic partnerships in keeping ahead of the AI revolution.
By observing such industry giants, SAFC recognizes the importance of aligning AI investments with long-term strategic goals. This involves not only financial commitment but also choosing partnerships that augment our technological capabilities and drive innovation within the financial sector. Such investments ensure that SAFC remains competitive and capable of leveraging AI to enhance operational efficiencies and customer experiences.
2. Workforce Upskilling
Acknowledging the revolutionary potential of artificial intelligence, SAFC is dedicated to enhancing the skills of its personnel to effectively handle the complexities of a future powered by AI. This program is modelled after the methods used by multinational corporations such as Amazon, which initiated the “Upskilling 2025” project to train staff members for the new technological landscape. Amazon invests in training to ensure that its employees have the skills needed to handle AI and automation technologies and remain relevant in their professions.
Similarly, SAFC is developing comprehensive training programs to enhance employee understanding of AI applications. These initiative aim to encourage a mindset that values lifelong learning and adaptation in addition to imparting new skills. To ensure that our human resources keep up with our technical investments, SAFC is creating a culture that promotes skill enhancement and technological flexibility. This will enable its employees to participate successfully in an increasingly automated environment.
3. Collaboration and Knowledge Sharing
Emulating successful tech giants, SAFC values the power of collaboration in the AI landscape. Google’s approach to AI development, which includes partnerships with academic institutions and industry leaders, exemplifies the benefits of collaborative knowledge sharing. Through these alliances, Google not only enhances its own AI capabilities but also contributes to the broader technological community, driving innovation and setting industry standards.
At SAFC, we are actively seeking partnerships with FinTech companies and AI experts to integrate advanced technologies into our services. Additionally, our recent membership in the Fintech Philippines Association underscores our commitment to collaboration. By putting us in touch with industry leaders, this association offers us a forum for sharing ideas, exploring new technologies, and involvement in projects that will influence the direction of finance. These partnerships keep us at the forefront of financial services by expanding our technology insights and improving our product offerings. SAFC can more effectively handle the difficulties of integrating AI and realize its full potential for enhancing consumer satisfaction and service delivery by collaborating on projects and exchanging best practices.
4. Enhancing Data Security
Data and system security must be prioritized when AI gets integrated into our daily operations. The investment made by Nvidia in safe AI infrastructure is an excellent illustration of how businesses are tackling the security issues raised by AI. Nvidia ensures that AI solutions are safe and efficient by creating specialized hardware that safeguards data integrity. This hardware is used to support important applications across multiple industries.
Following this model, SAFC is enhancing its cybersecurity measures to protect against potential breaches that could compromise sensitive financial data. This entails putting in place strict access controls, cutting-edge encryption methods, and ongoing data transaction monitoring. Our goal in strengthening our defenses against cyber attacks is to gain our clients’ trust and uphold our reputation for dependability and security in the digital era.
5. Regulatory Compliance and Monitoring
Apple’s privacy-centric AI deployment illustrates the importance of adhering to regulatory standards while integrating AI technologies. Apple’s approach ensures that user data is processed with utmost confidentiality, aligning with global privacy laws and building consumer trust. Their AI systems are designed to minimize data exposure and maximize privacy, setting a benchmark for ethical AI deployment.
SAFC is similarly committed to upholding stringent compliance standards as we integrate AI into our operations. This involves keeping up with changing legal requirements and making sure our AI applications follow local, state, and national regulations. In addition to safeguarding its clients, SAFC makes sure that its AI projects are ethical and sustainable, which advances both our reputation and long-term business goals.
What are the most common misconceptions about AI within your industry, and how do you address them?
In the financial services industry, misconceptions about AI can create unnecessary barriers to its adoption. One widespread myth is that artificial intelligence would completely replace human labor. Although there are some tasks that AI can automate, at SAFC, we see AI as a tool to enhance human capabilities rather than to replace them. It can help us provide more effective customer service and frees up staff time for more difficult and fulfilling tasks. We hope to realize AI’s promise while preserving the relevance and satisfaction of our workforce by teaching our team and stakeholders about the collaborative role of AI.
Another common myth is the infallibility of AI. Many assume that AI solutions are perfect out-of-the-box, but the reality is that AI systems are only as good as the data they are trained on and the parameters set by their human developers. They can inherit biases and require ongoing monitoring and refinement. To prevent this issue in the future, our AI integration roadmap has a strict testing procedures and feedback loops to make constant improvements to our AI-driven workflows. This strategy complies with our commitment to ethical business practices and client-focused service by guaranteeing that our AI integrations are both efficient and fair.
Can you please give us your favorite “Life Lesson Quote”? Do you have a story about how that was relevant in your life?
One of my favorite quotes that has profoundly influenced my professional journey is, “Excellence is doing ordinary things extraordinarily well.” This philosophy has served as both a pillar of my professional life and an anchor in steering SAFC to achieve its present level of success. In the fast-paced world of finance, it’s often not the grand gestures but a company’s ability to consistently perform very well on daily tasks is frequently what makes it stand out. This strategy has assisted us in creating a culture where quality and attention to detail are valued highly.
In my early tenure as general manager, we encountered serious operational challenges that threatened our standards for customer service. Instead of looking for sweeping changes, we focused on enhancing the quality of our routine interactions and streamlining standard procedures. This meticulous attention to the ‘ordinary’ significantly improved our efficiency and customer satisfaction, reinforcing my belief that true excellence lies in mastering the fundamentals. This lesson continues to influence how I lead SAFC, ensuring that our team excels in every task, however small it may seem.
Off-topic, but I’m curious. As someone steering the ship, what thoughts or concerns often keep you awake at night? How do those thoughts influence your daily decision-making process?
As President and Managing Director of SAFC, my nights are often preoccupied with thoughts about the broader economic and political uncertainties that affect our industry and country. Political instabilities and their potential to trigger economic fluctuations concern me deeply, as they could lead to challenging business conditions and impact the financial wellbeing of the communities we serve. These considerations are crucial as they directly influence our strategic planning and risk management approaches.
Moreover, in a rapidly evolving financial sector, my focus is consistently on how we can sustain growth and continue to enhance financial inclusion for all socioeconomic sectors, particularly those at the lower end of the economic spectrum. My daily decision-making is guided by our mission to enhance our customers’ lives through financial services. It pushes me to promote a culture of excellence and resiliency within our team, making sure that we are prepared to face any obstacles and grasp chances to significantly improve the lives of our customers. In a changing business climate, this proactive strategy enables us to maintain our agility and responsiveness.
You are a person of great influence. If you could start a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger. 🙂
If I were to initiate a movement, it would focus on deepening national pride and proactive citizenship among Filipinos, specifically through enhancing financial literacy and inclusion. This effort would aim to empower individuals and communities across the country with the knowledge and tools necessary for financial stability and growth. By integrating financial education on investments, savings, and responsible credit usage into everyday learning, we can create financially aware citizens prepared to contribute to and thrive in our economy.
This initiative aligns with SAFC’s core mission of improving Filipinos’ lives, reflecting our commitment to supporting 70% of SMEs in our portfolio — vital contributors to the local economy. We plan to leverage our existing network and resources to deliver widespread financial literacy programs, ensuring that these opportunities reach not just urban centers but also the most underserved communities. Through this approach of enhancing financial capability and reinforcing a collective national identity, we aim to strengthen societal bonds and economic foundations simultaneously, towards a resilient and proud nation.
How can our readers further follow you online?
Readers interested in following my insights and updates can follow or connect with me on LinkedIn under Joel C. Cruz. For more information about our initiatives and updates at SAFC, please visit our website at https://safc.com.ph/. For the latest news and updates, check out our dedicated section at https://safc.com.ph/category/news-and-updates/. These platforms provide comprehensive details on our ongoing projects and the impact we are striving to make in the financial sector.
Thank you for the time you spent sharing these fantastic insights. We wish you only continued success in your great work!