The ABA Policy Advocacy Meeting chaired by CTBC Bank Executive Vice President Mr. Austin Chiang, considered position papers prepared and presented by representatives of ABA member banks and knowledge partners on policy issues of current concern to the banking sector. Ms. Rachael Kao, President, CTBC Financial Holding Co., Ltd., presented a summary of a paper sharing the Bank’s experience, practices and insights, along with other relevant information, on “Ethical Banking and Corporate Governance”. In her paper, Ms. Kao noted that customer trust in banks has been declining, particularly among younger and digitally native customers who expect banks to act with fairness, fee transparency, customer care, and social responsibility.
In addition, from an investors’ perspective, ethical banking is increasingly seen as a critical factor in risk management and long-term value creation. Lastly, from a regulatory perspective, authorities are tightening corporate governance and ethical banking standards to prevent financial misconduct, enhance industry stability and customer protection, through elevated reporting requirements, accountability requirement on board and management team
To help ABA members address these issues, Ms. Kao shared CTBC’s experience and practices in the following areas: (a) Strengthening customer trust through stronger ethical banking principles and governance reform; (b) Balancing shareholder value with social responsibility, financial inclusion, and ESG principles; and (c) strengthening board accountability and corporate governance to prevent misconduct and strengthen ethical banking practices. Mr. Reginaldo Cariaso, President and CEO of Rizal Commercial Banking Corporation (RCBC) presented a paper sharing the experience and best practice of his organization on “Open Banking and Customer Data Privacy Protection”.
Mr. Cariaso’s paper outlines RCBC’s open banking strategy and the role of Application Programming Activities (APIs) as key enablers alongside the bank’s data governance structure to ensure data security. It stresses the importance of expanding comprehensive governance and operational models, guided by transparency, explicit 10 consent, and a multi-layered security architecture. As the industry moves forward, maintaining the delicate balance between digital innovation and ensuring the utmost protection of the bank’s customers’ most sensitive date will be the key to success in this new environment, the paper concludes. Mr. Shirish Pathak, Managing Director of Fintelekt Advisory Services, presented a paper sharing his organization’s experience and insights, along with other relevant information on “Money Mule Account Issue in Banking”.
The paper essentially discussed strategies to reduce vulnerabilities, strengthen defenses, and enhance regional cooperation against money mule activities. Mr. Pathak’s paper also explored the key trends and the compliance tools available with banks. It maintained that the fight against money mule accounts in Asia will require not just technological sophistication but harmonious efforts among banks, regulators, and law enforcement agencies. By aligning detection strategies and technology, regulatory frameworks, and public awareness campaigns, the region can significantly reduce the operational space for mule networks, reinforcing trust in its rapidly evolving banking ecosystem. Committee Chairman Chiang presented a summary of the Paper on “Financing the future: Cyber Protection – The essential risk management tool” prepared by Mr. Chris Baker, Regional Head of Cyber Asia for Munich Re, considered a global leader in Cyber (re)insurance. Among the highlights of the paper as presented by Mr. Austin are the following:
Cybercrime is one of the most disruptive risks of the digital era;
- It is estimated that the global cost of cybercrime will reach US$10.5 trillion in 2025
- Financial services remain one of the most attractive targets for cybercriminals
- Ransomware, phishing, and supply chain attacks continue to dominate
- The financial sector remains particularly attractive to cyber criminals for several reasons: (a) direct access to money; (b) vast personal data; (c) complex, interconnected systems; (d) high transaction volumes; (e) reputation at stake; (f) regulatory pressure
- Cyber insurance has evolved beyond being a simple risk transfer tool; it now plays an increasingly strategic role in banking
- Coverage spans breach response, regulatory fines, business interruption, and third-party liability.
- While cyber insurance cannot eliminate risk, it offers essential protection through financial support, expert resources, and regulatory coverage
- Extending cyber covers to SMEs and individuals also creates unique opportunities to differentiate services and strengthen customer trust.
Mr. Chiang also mentioned that Munich Re is offering interested ABA member banks to take advantage of its underwriting and cyber analytics capabilities, helping their businesses and customers safeguard their digital environment.
The Committee further exchanged views on possible issues for future policy advocacy work of the Association, followed by a consideration of a short-list of policy issues to be pursued from among those suggested by the Committee.
