MANILA – The Philippines ranked fourth out of 55 countries, unchanged from the previous year and tied with India, in terms of espousing an environment conducive to financial inclusion, according to a recent report by The Economist Intelligence Unit (EIU).
In the Global Microscope 2018 report of the EIU, the Philippines scored 72 out of 100 in terms of financial inclusion, following Colombia (81), Peru (78), and Uruguay (75).
The EIU is the research arm of The Economist Group, a British publication headquartered in London.
This year’s report took into consideration five factors—government and policy support, stability and integrity, products and outlets, consumer protection, and infrastructure, the Bangko Sentral ng Pilipinas said in a separate statement Wednesday.
“The Philippines’ Central Bank, Bangko Sentral ng Pilipinas (BSP), has been ahead of the curve in identifying opportunities and setting guidelines for financial inclusion,” the report read.
“Its focus on creating a digital finance ecosystem has led to the introduction of a sound payments infrastructure that helps the various financial-sector players to reduce their costs and further their outreach,” it added.
Earlier this year, the BSP said financial inclusion improved, citing a decrease in the number of unbanked areas in the Philippines.
As of June 2017, the number of unbanked areas in the country improved at 571 local government units (LGUs) or 34.9 percent of the total, compared with the 609 LGUs or 37.3 percent in 2011.
The number of automated teller machines (ATMs) in the same period rose by 12 percent to 19,500, while non-bank financial services providers were recorded at 61,000.
“Since 2009, the Philippines consistently belongs to the top-ranked countries in terms of having an enabling environment and regulatory framework for microfinance and financial inclusion,” the central bank said.
“Another enabling factor is the close collaboration with industry players through the BSP’s ‘test-and-learn’ approach to financial technology,” it elaborated. (GMA News)
