During a webinar ahead of the ADB Annual Meetings next month, Bangko Sentral ng Pilipinas (BSP) governor Diokno described his vision for the Philippines becoming a digital-heavy, cash-light society to help achieve inclusive growth.
“50% or half of all transactions should be digital by 2023, and 70% of Filipino adults should have formal bank accounts by 2023,” Diokno said.
The webinar highlighted how the pandemic has been a catalyst for financial digitalization, as mobility restrictions prompted more people to use digital payments. In 2020, over 4 million new electronic financial accounts were created in the Philippines.
Cybersecurity is also top of mind for the BSP as it seeks to build public trust in digital banking, Diokno said, adding that “digitalization measures go hand in hand with ensuring a safe cybersecurity environment” with fintech institutions facing the “same regulatory environment as banks.”
Diokno explained that the government’s strategy to increase Internet access across the country is concurrent and crucial to the BSP’s efforts to expand financial inclusion. He also provided detail on how the BSP is running financial and digital literacy programs with local communities such as fishermen and state institutions including the Civil Service and Philippine National Police.
Diokno said he expects further surge in the use of digital platforms for payments and in the number of Filipino adults with financial accounts over the near term, highlighting that the BSP is on track of its financial inclusion and digitalization goals.
He said the national ID system, mass registration for which is ongoing, will help facilitate the Philippines’ digitalization and financial inclusion goals. The national ID system, he stressed, will squarely address the problem of lack of formal IDs among the marginalized, which is a major barrier for them to open bank or financial accounts.
