BSP confident of meeting digitalization, inclusion goals

The Bangko Sentral ng Pilipinas (BSP) is confident of achieving the targets under its digitalization and financial inclusion roadmap this year as it continues to ramp up various initiatives.

BSP Governor Felipe Medalla said the central bank is optimistic that the goals under the Digital Payments Transformation Roadmap would be achieved before the year ends.

Under the roadmap, the BSP aims to shift 50 percent of total retail transactions to electronic channels and increase the number of Filipino adults with bank accounts to 70 percent by 2023.

“We’re sure to hit that before the end of the year,” Medalla told reporters at the launch of the Paleng-QR Plus in Pasig.

With the COVID-19 pandemic serving as catalyst, the share of digital payments to total retail transactions increased to 30.3 percent in 2021 from 20.1 percent in 2020, while the number of banked Filipino adults almost doubled to 56 percent in 2021 from 29 percent in 2019.

The BSP chief said that more Filipinos continue to embrace digitalization by opening digital bank or e-wallet accounts.

“The number of transaction accounts doubled,” he said.

He earlier said that e-money accounts now constitute the most owned account type with 27.5 million users compared to bank account users with 18 million.

Likewise, Medalla said electronic fund transfers via InstaPay and PESONet are about to overtake ATM and check transactions.

To make financial digitalization more inclusive, the BSP is urging banks and financial institutions to waive transaction fees for small e-payments via a cost-sharing system, in exchange for the reduction of the reserve requirement ratio or the level of cash banks are required to keep with the central bank.

Medalla led the launching of the Paleng-QR Ph Plus at the Pasig City Mega Market, making Pasig the first local government unit in the National Capital Region with the QR system, and the sixth in the Philippines after the cities of Baguio, Davao, Tagbilaran, Naga and Lapu-Lapu.

QR (quick response) brings the benefits of digital technology even to small vendors or tricycles drivers, allowing them, among others, to accept e-payments. By simply scanning a merchant’s QR code with their cell phones, customers can pay for purchases or services electronically, quickly and conveniently.