BSP in financial inclusion and financial education
National Strategy for Financial Inclusion
Considering the importance of expanding access to financial products and services, especially the unserved and underserved Filipinos, it is ideal to create a platform where public and private sector stakeholders can dialogue, coordinate and cooperate to make financial inclusion, and eventually, inclusive growth, a reality in the Philippines. The National Strategy for Financial Inclusion (NSFI) aims to establish this platform. The World Bank has noted that countries with financial inclusion strategies have more significant growth in financial inclusion than countries without one. The NSFI is a comprehensive public document developed through a broad-based consultative process with private and public sector stakeholders involved in financial sector development, to systematically accelerate the level of financial inclusion. It was initial- ly crafted by 13 government agencies, through four interagency working groups which focused on the following key areas: (1) policy, regulation and
supervision, (2) financial education and consumer protection, (3) advocacy programs, and (4) data and measurement.
Global Policy Forum of the Alliance for Financial Inclusion
Bangko Sentral ng Pilipinas Governor Amando M. Tetangco, Jr. addressed an audience of over 400 central bank governors, supervisors, regulators, ministers and development partners during the 2014 Global Policy Forum (GPF) of the Alliance for Financial Inclusion (AFI) at Port of Spain, Trinidad and Tobago. AFI is the leading global network of policy makers and regulators committed to financial inclusion with over 120 members from 95 countries. The powerful proposition of financial inclusion is what brings the network together--that access to financial services enables previously unserved individuals and small firms to manage their financial lives, manage risks and take advantage of economic opportunities. AFI has established a platform for peer learning and knowledge exchange to develop solutions that can help address financial exclusion in various jurisdictions. The BSP is among the first members of AFI, a testament to its commitment to financial inclusion and the many steps it has already taken toward this end.
Tetangco in his speech emphasized that aside from commitment and cooperation, one key driver of the network’s success is the concrete results or impact of policy solutions in bringing more people in the financial system. He cited five examples from the many policy solutions within the network which were established only in the last five years that have brought 62 million people in the formal financial system in these five countries. This includes the over 25 million Filipinos who now have access to a transactional account following the development of an electronic money policy framework by the BSP. These transactional accounts can be the necessary first step in gaining access to a wider range of services such as deposits and loans. This is very significant for the Philippines which the World Bank has estimated that only 26 percent of adults have access to a deposit account and 10.5 percent to a formal loan.
Recognizing these gains and the BSP’s continued commitment, AFI honored the BSP with two awards during the event—an honorary award to Governor Tetangco for his excellent stewardship of the network during his two-year chairmanship and a Maya Declaration awards for the tangible financial inclusion commitments that were achieved by the BSP. The Maya Declaration is the first ever global commitment of individual countries which was launched in Riviera Maya Mexico during the 2011 GPF. The G20 has adopted the Maya Declaration platform in its financial inclusion work.
Financial inclusion has gained prominence as a global policy agenda as there is an estimated 2.5 billion people with no access to formal financial services. Global players such as the G20 and Global Standard Setting Bodies such as the Basel Committee on Banking Supervision and the Financial Action Task Force are recognizing that financial inclusion can complement other policy objectives of financial stability and integrity.