BUILDING AN INCLUSIVE DIGITAL FINANCE ECOSYSTEM

DIGITAL TECHNOLOGY is becoming an inevitable part of the day-to-day lives of every Filipino. Data from the global mobile network industry show that in 2019, 67% of Filipinos had a social media account and used the Internet, while those with mobile broadband and smartphone stood at 86% and 65%, respectively. Mobile phones have enabled a wide array of services on demand whenever, wherever — whether for streaming movies, buying stuff, ordering food, or connecting with friends and families.

Such utility of mobile phones is also envisioned to democratize access to financial services and address exclusion, considering that 70% of the unbanked own a mobile phone. Based on the 2017 Financial Inclusion Survey, more than two-thirds of Filipinos do not have a formal account, leaving them unable to fully benefit from the gains and opportunities in an increasingly digital and growing economy.

The promise of digital technology needs to be deliberately harnessed to pave the way for greater financial inclusion. Toward this end, the BSP pursues three strategic thrusts: building an inclusive digital finance ecosystem, creating compelling use cases for financial inclusion, and fostering financial literacy and trust in the financial system through consumer protection.

An inclusive digital finance ecosystem is one that enables market players to viably serve the varying needs of the populations, particularly the low-income sector. This