MANILA, Philippines—The central bank’s policy of promoting financial inclusion also bolsters the country’s efforts to empower and create more opportunities for persons with disabilities who will benefit from greater access to banking, insurance and investments, among other services.
Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno said at an online forum that all Filipinos “should be able to make better lives for themselves as the economy improves.”
“This requires that we continuously work toward the National Council on Disability Affairs’ (NCDA) vision of full participation and equality of rights and opportunities for PWDs,” he told an audience at an online seminar hosted by NCDA.
The BSP chief said the agency promotes financial inclusion which will give access to everyone to affordable and appropriate financial products and services as it unlocks opportunities for more Filipinos to improve their financial wellbeing, support inclusive growth, and reap the benefits of a growing economy.
A key BSP strategy on this is to make it easier to open a Basic Deposit Account, which is designed to meet the needs of the unbanked. With a minimal deposit of P100, no maintaining balance, no dormancy fees and simplified identification requirements, anyone can open an account in the nearest bank, cash agent, or a mobile app. Presently, 133 banks in the country offer basic deposit accounts.
To help the unbanked with identification requirements, the BSP supports the implementation of the Philippine National ID System.
This will provide an ID that can be accepted when opening a financial account.
The BSP worked on policies that led to the development of “sacheted” financial services, which include novel and groundbreaking services like microsavings, microinsurance and investments, microcredit and remittances, which are designed to be affordable and accessible to all.
“Financial inclusion will help us recover from the adverse economic impact of the pandemic and make us better prepared for a post COVID-19 economy,” Diokno said.
The drive to boost financial inclusion in the Philippines relies heavily on technology as an enabler for stakeholders to participate more in the digital economy.
Over a year into the pandemic, the BSP believes that financial consumers are adapting to the use of technology for their financial transactions.
Earlier, Diokno expressed confidence that the Philippines can meet the central bank’s ambitious goals for improved digitalization and financial inclusion in two years as a means of boosting inclusive growth among citizens.
He said that 50 percent of all transactions should be digital by 2023, and 70 percent of Filipino adults should have formal bank accounts by 2023. This, in turn, will help the country growing on a sustainable basis while helping reduce the incidence of poverty.