Govt commits to invest in digital economy, fintech

Finance Secretary Benjamin Diokno reaffirmed the Marcos administration’s commitment to invest in the digital economy as he underscored the valuable role of technology in finance.

“Technology has a well-defined role in the world of finance. It facilitates a more inclusive and efficient financial system. [T]he Philippine government is committed to making foundational investments in the digital economy. We will need the best technologies, ideas, and people to ensure that Filipinos have access to vast opportunities at their fingertips,” said Secretary Diokno during the Digital Banking Asia Conference on December 7, 2022.

The Digital Banking Asia Conference connects leading banking experts across the globe to collaborate on new ideas and address the industry’s most pressing issues.

At the conference, Secretary Diokno shared that the government advocates the rapid adoption of fintech, recognizing that the digital transformation of the country’s financial systems will lead to greater financial inclusion and opportunities.

For instance, the Department of Finance (DOF) is closely monitoring the digitalization of its main revenue generating agencies.

The Digital Transformation (DX) Program of the Bureau of Internal Revenue (BIR) aims to transform the agency into a data-driven organization. Revenue workers will be digitally empowered to deliver quality public service and enhance the overall taxpayer experience.

The Bureau of Customs (BOC) worked with the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) to establish a national action plan for cross-border paperless trade. The World Bank also financed the Philippine Customs Modernization Program (PCMP) that is now transforming the BOC from a manual paper-based organization to a digitalized one.

“By 2024, we expect to fully modernize the Bureau of Customs in accordance with international standards,” said Secretary Diokno.

Digital banks are on the rise with the Bangko Sentral ng Pilipinas (BSP) developing a digital financial marketplace model.

The government is also expediting the rollout of the Philippine Identification System (PhilSys) to enable seamless financial transactions and more efficient distribution of social services.

Moreover, the landmark Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law strengthens the culture of research, development, and innovation in the country. The amendments to the Retail Trade Liberalization Act (RTLA), Public Service Act (PSA), and Foreign Investments Act (FIA) widen the space for investments in enterprises employing cutting-edge technologies.

The government targets to convert at least half of all retail transactions volume into digital form and onboard 70 percent of Filipino adults to the formal financial system by 2023.