Philippine State Bank Rolls Out Fraud Insurance for Depositors

Fraud Cover Targets Retail Depositors

Land Bank of the Philippines is accelerating distribution of a deposit insurance product designed to shield retail customers from unauthorized withdrawals and card-based fraud. The state-owned lender introduced ATM Protect in partnership with Cocogen Insurance in September 2025 and is now broadening enrollment across its branch network.

The product covers losses from card skimming, terminal tampering, forced withdrawals at gunpoint, and unauthorized transactions conducted through digital banking channels. Three annual tiers are available at PHP 180, PHP 360, and PHP 540, each scaling benefits to include robbery-related losses, accidental death, hospital indemnity, device theft, and identity theft remediation.

Coverage extends to transactions made by immediate family members acting as authorized representatives. Enrollment occurs via QR code at branches or through online channels, with premium payments processed via the bank's iAccess mobile application or over-the-counter. Proof of payment must be submitted to Cocogen for activation.

Land Bank president and CEO Lynette Ortiz said the initiative targets customers who depend on savings for daily expenses. The bank frames the product as a hedge against both physical and digital threats, offering round-the-clock global coverage, emergency hotline access, medical and legal referrals, and expedited claims processing.

Parallel Push Into AI-Backed MSME Lending

Separately, Land Bank signed a memorandum of understanding with the Department of Information and Communications Technology to co-develop artificial intelligence tools that streamline credit access for micro, small, and medium enterprises. The collaboration centers on the DICT's MSME AI Tech Stack, a mobile-first suite of assistants designed to help small businesses prepare loan applications, comply with regulatory requirements, set pricing, interpret contracts, generate marketing content, and identify government support programs.

The platform will support Filipino, English, and other major Philippine languages. Land Bank will contribute use-case identification, pilot testing, and operational feedback to refine the stack's functionality. Anticipated applications include automated business-plan preparation, documentary organization, credit-assessment support, and decision-making tools.

The project forms part of the ASEAN Priority Economic Deliverable on AI-Powered MSME Growth, an initiative the Philippines is advancing during its 2026 chairmanship of the regional bloc. The goal is to scale affordable AI tools for small enterprises across Southeast Asia, addressing persistent gaps in creditworthiness documentation and access to formal financing.

Why Dual Initiatives Matter

The fraud insurance rollout and the AI lending partnership reflect parallel strategies to serve different segments of Land Bank's customer base. ATM Protect addresses retail depositors concerned about rising card fraud and robbery, while the DICT collaboration targets entrepreneurs who lack the documentation or credit history to secure traditional loans.

Both initiatives underscore the lender's dual mandate as a state institution: protecting existing depositors while expanding financial inclusion for underbanked segments. The fraud insurance product competes with similar offerings from private banks, though pricing remains competitive for low-balance accounts. The AI lending tools, meanwhile, aim to reduce the manual overhead of assessing small-ticket loan applications, a perennial bottleneck in MSME finance.

Land Bank's push into AI-driven credit assessment also positions the lender to benefit from regional digitalization trends. Southeast Asian governments are increasingly investing in public digital infrastructure to reduce the cost of serving small businesses, and the ASEAN framework provides a coordination mechanism for cross-border deployment.

Next Steps

Land Bank has not disclosed enrollment figures for ATM Protect or set a timeline for commercial deployment of the MSME AI stack. The DICT partnership remains in the pilot phase, with operational rollout contingent on feedback from initial use cases. The bank's ability to scale both initiatives will depend on customer uptake, claims experience for the insurance product, and the accuracy of AI-generated credit assessments for small enterprises.

The fraud insurance program also faces competition from private insurers and embedded finance providers that bundle similar coverage into digital wallets and payment apps. Land Bank's advantage lies in its existing depositor base and branch footprint, particularly in rural areas where alternative providers have limited reach.

For the AI lending tools, success hinges on the quality of data inputs and the stack's ability to handle informal business structures common among Philippine micro-enterprises. The platform's multilingual capability may prove decisive in regions where English proficiency is lower and local languages dominate commerce.