BSP reports major gains in financial inclusion

Riza Lozada

The goal of the Bangko Sentral Ng Pilipinas (BSP) on financial inclusion is gaining headway as the number of cities and towns without banking services went down to 12.6 percent from 37 percent in 2012, BSP Governor Amando M. Tetangco Jr. said.

Tetangco attributed the expanded financial inclusion to the operation of e-money agents, pawnshops, remittance agents and moneychangers, to name a few.

The so-called micro-banking offices (MBOs) and other alternative access points led to the widening of banking services, he added.

“Financial inclusion is a strong advocacy of the BSP.  In pursuit of this, we have adopted a three-prong approach, namely access to financial products and services, financial education and literacy, and financial consumer protection.  Over the years, we have gained success in this endeavor,” Tetangco said.

The BSP is also exploiting modern technology to expand banking services such as the implementation of appropriate regulations to allow innovation and the use of market-based information-technology (IT) solutions, according to Tetangco.

“This operating environment has resulted in a greater reach in previously unbanked areas,” he said.

BSP regulations led to the development of specific products that cater to the needs of the small savers and entrepreneurs such as micro-agriculture and micro-housing loans and micro-deposits.

“Over the years, the BSP has conducted various outreach learning activities in 54 percent of our 81 provinces nationwide,” Tetangco reported.

From Laoag City to General Santos City, the BSP financial-education and literacy program also covered countries with huge Overseas Filipino Workers (OFWs) communities such as those in Hong Kong, Singapore, South Korea, Bahrain, Brunei Darussalam, Qatar, Saudi Arabia, Italy and the United Kingdom.

“Our financial education campaigns cover the specific needs of students, professionals and families of OFWs,” Tetangco said.

The Economist Intelligence Unit, which offers country, risk and analysis across 200 countries worldwide, has named the Philippines as the top country in Asia and the third in the world with the most conducive environment for financial inclusion.

Tetangco also reported that the BSP has recently adopted a formal consumer protection framework for banks to adhere to, in addition to having set up a dedicated unit in the BSP to act as a redress mechanism for consumers in the financial sector.

“We are now working on a National Financial Inclusion Strategy which we hope to launch this year to tie the BSP efforts with those of other government agencies and the private sector,” the governor said.