BSP pushes affordable digital finance for all Filipinos

By Francis Allan L. Angelo

MANILA — The Bangko Sentral ng Pilipinas said financial inclusion must go beyond increasing account ownership and digital transactions, stressing that financial services should also be affordable, accessible, understandable, and useful to Filipinos.

The central bank said wider digital payment use should translate into stronger financial health by helping people save, access appropriate credit and insurance, withstand financial shocks, and build greater long-term financial security.

The push matters as transaction costs, account requirements, connectivity, financial literacy, trust, and ease of use can still prevent people from fully participating in the formal financial system.

The BSP said digital payments serve as an important gateway because payments are the most widely used financial service among Filipinos.

Digital payments can provide an entry point into the formal financial system and eventually lead consumers toward savings, credit, investments, and insurance, the central bank said.

Affordability remains particularly important because surveys cited by the BSP show that cost is among the key barriers identified by people who do not use digital payments.

Studies also indicate that lower transaction fees can encourage greater adoption and use, according to the BSP.

The central bank said cost, however, is only one of several obstacles to wider financial participation.

Account-opening requirements, maintaining balances, connectivity, access points, financial and digital literacy, consumer trust, safety, and ease of use can also influence whether Filipinos are able and willing to use formal financial services.

The BSP said it continues to work with the government and private sector to address those barriers.

Among its initiatives are Basic Deposit Accounts, which are designed to be easier and cheaper to open than conventional bank accounts.

Basic Deposit Accounts require an opening amount of no more than PHP 100 and carry no maintaining balance or dormancy charges.

The BSP also led the development of the country’s interoperable digital payments system, which allows customers of participating financial institutions to conduct more types of transactions across different providers.

Interoperability is intended to make payments more convenient while improving the reach, safety, and affordability of digital financial services.

The central bank has also promoted Paleng-QR Ph Plus, an initiative that encourages QR-based payments among public market vendors, tricycle drivers, and other community-based merchants.

The program is designed to bring cashless payments into everyday transactions and broaden the participation of small merchants and consumers in the digital financial system.

The BSP also uses its E-Learning Academy, or BELA, and broader financial education programs to improve financial and digital literacy.

These initiatives are intended to help Filipinos make informed financial decisions and use digital financial services safely and confidently.

The BSP said stronger consumer protection measures complement its education programs by helping build confidence and trust in the financial system.

The central bank also promotes competition and responsible innovation among banks, e-wallet operators, financial technology firms, and other providers.

Greater competition can give consumers more choices while encouraging providers to improve service quality and affordability.

The BSP stressed that simply expanding access and transaction volumes is not the final objective of financial inclusion.

The broader goal is financial health, or ensuring that financial services help people manage day-to-day expenses and prepare for future needs.

Financial services should also enable Filipinos to save, secure appropriate financing and insurance, cope with financial shocks, and build a more secure financial future, the central bank said.

As lead implementer of the National Strategy for Financial Inclusion, the BSP coordinates government agencies and private sector partners in efforts to remove barriers to financial services.

The strategy seeks to ensure that broader access to financial products results in meaningful improvements in people’s lives rather than merely increasing the number of accounts or digital transactions.