FOBO, VUCA and AI


Banking and the financial sectors are in a stage of transformation with the adoption of AI (artificial intelligence). Its use is expected to enhance efficiency, improve security and more importantly, customer experiences. 

AI is creating a new working environment – makes a whole lot easier as it automates procedures such as data entry and keeps track of account activities. The potential of what AI can do is vast and enormous, which causes apprehension to some.

And whenever the conversions veer toward AI, the acronyms FOBO  and VUCA emerge. FOBO is fear of being obsolete while VUCA stands for vulnerability, uncertainty, complexity and ambiguity.

Yes, Virginia, while AI is a bit of VUCA for me, still, I fully subscribe to the adoption of AI in banking, financial markets, particularly the stock market. Otherwise, we will be left in the dust.

On another hand, I, also, could fully empathize with the anxiety of some of the working force as AI, with enough historical data, can analyse and compose an opinion with accuracy close to perfect.

At the recent Monday Circle Forum, First Metro Group Vice President Andro Leo “Andoy” Beltran shares that “Artificial Intelligence is no longer just a buzzword.It's becoming a key player in the Philippine market landscape.”

In fact, AI-based trading tools are often used to enhance trading strategies, but they must operate within the ethical and legal frameworks that govern stock market activities, explains Mr. Andoy.

First Metro Securities is among those financial institutions offering AI-powered tools with their Trading Central Chart Pattern Recognition System that empowers traders by analyzing complex patterns in real-time, making trading smarter, faster, and more intuitive.

By automatically identifying key chart patterns and technical signals, this system empowers traders of all experience levels with real-time insights and recommendations. For instance, exploring market conditions, for short, medium and long-term time horizons, AI makes complex technical analysis simpler and more accessible.

Still, the FirstMetro Head of Business Development & Market Education Departments points out that traders using AI must still adhere to the principles of due diligence, as the responsibility for trades still rests on individual investors or institutions

“It's like having a trading coach in your corner, but one that never sleeps, one that doesn't allow emotions and attachment to affect his decisions. With clear visual aids and intuitive alerts, you can confidently make informed decisions—backed by technology used by industry experts to take the guesswork out of their trades.”

Let it be stressed as well that the application and/or use of AI is allowed provided it complies with prevailing financial regulations of the Securities and Exchange Commission (SEC) and the Philippine Stock Exchange (PSE). Allowed is the use of AI tools such as algorithmic trading systems, automated chart pattern recognition, and other market analytics platforms.

These PSE and SEC regulations focus primarily on fair market practices, transparency, investor protection and more importantly ensure that such systems promote informed decision-making and not market manipulation.

Fear not. AI is not something that could replace an individual. Instead of feeling FOBO, feel inspired as the benefits of using AI are impactful. AI can gather information, then use this information to enrich understanding, facilitate and improve work output that, in turn, could lead to better, insightful and intellectual decision making. 

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