BSP-led group pushes better broadband services to boost financial inclusion

MANILA, Philippines—A group of government agencies, led by the Bangko Sentral ng Pilipinas (BSP), is asking policymakers in the executive and legislative branches to help improve broadband services in the Philippines to bring in more “unbanked” citizens into the formal banking system.

In a statement, the BSP said Governor Benjamin Diokno recently convened a meeting of the Financial Inclusion Steering Committee (FISC) during which an agreement was reached to endorse legislative priorities aimed at enhancing digital and credit infrastructure in the country.

The FISC, the statement said, is endorsing to the Legislative-Executive Development Advisory Council (Ledac) the inclusion of the proposed Open Access to Data Transmission law “to ensure broad-based access to internet and support use of digital financial services.”

The bill aims to address internet infrastructure gaps by bringing in more players to the broadband sector.

In December 2020, the FISC also endorsed to the Office of the President a proposed executive order that would liberalize access to satellite technology for broadband services and fast-track the expansion of internet infrastructure in rural areas that are unserved by current providers. The proposal is pending evaluation by Malacañang.

The FISC is also endorsing the passage of the Warehouse Receipts Bill to promote the use of these documents as credible collateral for loans to improve access to credit by farmers and micro, small and medium enterprises.

“By modernizing and professionalizing the warehousing industry, the bill will support supply chain financing as well as the growth of e-commerce under the pandemic and beyond,” the group said.

The FISC meeting also provided members with updates on the micro insurance industry, digital shift and formal recognition of MSMEs and the rollout of the Philippine Identification System or PhilSys. These are considered as important initiatives to build financial resilience of communities and businesses as the country emerges from the health and economic crisis brought by the COVID-19 pandemic.

Members of the FISC included the heads of the Commission on Filipinos Overseas; the Cooperative Development Authority; the Department of Agrarian Reform; the Department of Agriculture; the Department of Budget and Management; the Department of Education; the Department of Finance; the Department of Information and Communications Technology; the Department of Labor and Employment; the Department of Science and Technology; the Department of Social Welfare and Development; the Department of Trade and Industry; the Department of Transportation; the Insurance Commission; the National Economic Development Authority; the Philippine Commission on Women; the Philippine Deposit Insurance Corporation; the Philippine Statistics Authority and the Securities and Exchange Commission.

“The FISC is committed to serve as a platform for whole-of-government approach in promoting financial inclusion,” the BSP said, adding that the group will meet again in July 2021.

TSB