PH’s financial inclusion initiatives gain recognition

The Philippines’ efforts for financial inclusion gained recognition as Washington D.C.-based Brookings Institution said that the country achieved a number fifteen ranking on a global survey for overall financial inclusion.

Based on 2015 Brookings Financial and Digital Inclusion Project (FDIP) Report and Scorecard, the Philippines has demonstrated strong commitment to integrating the efforts of private and public sectors to advance financial inclusion.

The report particularly noted the Bangko Sentral ng Pilipinas’ (BSP) approximately 40 regulations pertaining to microfinance and financial inclusion issues between 2001 and 2012.

“These regulations have, among other things, provided flexibility for alternative financial services providers (FSPs), including ‘pawnshops, remittance agents, money changers/foreign exchange dealers, and mobile banking agents,’ to better engage traditionally underserved consumers,” FDIP report stated.

Among the 21 countries analyzed by Brookings, the Philippines ranked in eighth place for country commitment and mobile capacity; earned a seventh place ranking for regulatory environment; and fiftieth place for adoption.

Brookings also said the Philippines was among the earliest countries that developed mobile financial services schemes, such as Smart’s Smart Money and Globe’s GCash.

“The BSP was the first central bank in the world to establish an office, the Inclusive Finance Advocacy Staff, dedicated to financial inclusion,” the report said.

FDIP also noted the BSP’s Circular 649 in 2009 and Circular 704 in 2010, which provided e-money regulatory guidance and enabled non-bank institu¬tions to be eligible to become e-money issuers.

As of end-2013, the number of registered e-money accounts had grown to over 25 million accounts for a population of about 98 million.

“The Philippines has been very active in participating in financial inclusion leadership roles,” Brookings said. “BSP is also one of the few non-G20 countries that engages closely with the Standard Setting Bodies and is a member of the Global Partnership for Financial Inclusion.”

The FDIP Report and Scorecard is the first of a series of annual reports examining financial inclusion activities around the world. It evaluated access to and usage of affordable financial services across 21 countries.

Among the countries that were included are Afghanistan, Bangladesh, Brazil, Chile, Colombia, Ethiopia, India, Indonesia, Kenya, Malawi, Mexico, Nigeria, Pakistan, Peru, the Philippines, Rwanda, South Africa, Tanzania, Turkey, Uganda, and Zambia.