The Philippines has the most conducive environment for financial inclusion in Asia and the fourth best globally thanks to innovative efforts by regulators to bring more citizens into the formal economy, a new study revealed.
In a press statement, the Bangko Sentral ng Pilipinas (BSP) cited the 2018 edition of a cross-country evaluation called Global Microscope, which ranked the country at the top along with India as having the best environment in the region for encouraging so-called unbanked citizens into participating in the financial system.
Globally, the Philippines came in just behind Peru, Colombia and Uruguay based on the survey conducted among 55 jurisdictions.
The study is regularly undertaken by the Economist Intelligence Unit, and the latest edition looked at government and policy support, stability and integrity, products and outlets, consumer protection and infrastructure. Since 2009, the Philippines consistently belonged to the top-ranked countries in terms of having an enabling environment and regulatory framework for microfinance and financial inclusion.
The report noted the BSP “has been ahead of the curve in identifying opportunities and setting guidelines for financial inclusion.”
It recognized that the central bank’s focus on “creating a digital finance ecosystem has led to the introduction of a sound payments infrastructure that helps various financial sector players to reduce their costs and further their outreach.”