Banks urged to expand digital products

The Bangko Sentral ng Pilipinas (BSP) is encouraging banks to diversify their financial products as the regulator pushes lower transaction fees to accelerate digital payments and expand financial inclusion.

BSP Deputy Governor Mamerto Tangonan said banks should develop more competitive savings, credit, insurance, and investment products to attract more customers as digital banking becomes more affordable and accessible.

The call comes as the BSP implements Circular No. 1238, which requires banks to align fees for interbank fund transfers with those charged for transfers within the same bank, reducing the cost of digital transactions for consumers.

Tangonan said the BSP is closely monitoring the country’s 20 largest banks, which account for about 90 percent of total digital transaction volume, to ensure compliance with the new policy.

He noted that while several banks have already complied, others have yet to fully implement the required fee adjustments, with the BSP currently reviewing their compliance reports.

Despite the delayed implementation by some institutions, Tangonan said lower transaction costs are expected to encourage more Filipinos to adopt digital payment platforms.

“We believe that lower transaction fees are the keys to a pay-anyone-anywhere-anytime system,” he said.

According to Tangonan, wider adoption of digital payments benefits both consumers and financial institutions by expanding the number of users, merchants, and businesses connected to the payment network.

As transaction volumes increase, banks and electronic wallet providers can lower operating costs, making it easier to sustain affordable service fees while attracting even more users.

He said this creates a “positive network effect,” where every additional user generates greater value for the entire digital payments ecosystem and contributes to broader financial inclusion and economic growth.

Tangonan added that expanding digital financial offerings beyond payment services will enable banks to deepen customer relationships, attract more account holders, and create new revenue streams while supporting the BSP’s vision of a more inclusive and efficient financial system.