MANILA – Digitalization and financial inclusion are the foundations of the “New Economy,” according to Bangko Sentral ng Plipinas (BSP) Gov. Benjamin Diokno said.
“Why finance digitalization? Financial technology makes transactions easier and faster, which in turn, speeds up income. It also makes financial products and services accessible to a greater number of people, which in turn, enhances financial inclusion,” Diokno said on Friday in his speech during the 2021 Outstanding BSP Stakeholders Appreciation virtual ceremony.
The central bank has been pushing for digitalization of financial transactions even before the pandemic, with the goal to have at least half of these transactions done digitally.
BSP also aims to have about 70 percent of Filipino adults have their own financial accounts by 2023. During the pandemic, digital payment transactions using electronic fund transfers facilities like InstaPay and PesoNet surged following the lockdown measures implemented by the government.
Diokno said InstaPay transactions increased by 155.4 percent year-on-year in May 2021, while PesoNet transactions rose by 22 percent.
These facilities are the two real-time electronic payment systems under the central bank’s National Retail Payments System.
More than eight million electronic accounts were also created last year and monetary authorities expect more to be opened this year as more players enter the market.
“The establishment of digital banks will bring about greater efficiency and extend the reach of financial products and services among the unbanked, including MSMEs (micro, small and medium enterprises),” he said.
The use of QR codes have also been boosted after the central bank launched its person-to-merchant program, he added.
The Philippine Identification System is also a plus to the financial inclusion bid since “this will address the lack of identity documents which is among the most common barriers to account opening,” he added.(PNA)
