The FinTech Alliance.PH expressed optimism that the proposed Konektadong Pinoy law would boost broadband infrastructure development in rural areas, leading to an increase in the number of Filipinos with transaction accounts.
“FinTech Alliance.PH is committed to supporting the Bangko Sentral ng Pilipinas’ goal of having 70 percent of adult Filipinos open transaction accounts. The Konektadong Pinoy bill is poised to be a crucial policy enabler, ensuring that every Filipino, regardless of their location, gains access to financial technology,” said Lito Villanueva, founding chairman of FinTech Alliance.PH and RCBC executive vice president and chief innovations and inclusion officer.
Access to affordable, reliable and secure internet is essential for the widespread adoption of digital payments. The BSP’s 2019 Financial Inclusion Survey revealed that many Filipinos are hesitant to engage in online financial transactions due to factors such as lack of trust, awareness, and poor internet connectivity.
The Konektadong Pinoy bill seeks to bridge the digital divide by encouraging the entry of more internet service providers (ISPs) to improve service quality. It also includes consumer protection provisions, such as ISP performance standards and enhanced cybersecurity safeguards, which are not present in current laws.
These features of Konektadong Pinoy are envisioned to accelerate the growth of the fintech industry, digital payments, and the creation of transaction accounts, aligning with the government’s push for financial inclusion.
Under deliberation in the Senate, the bill is sponsored by Senator Alan Peter Cayetano and co-sponsored by Senators Sherwin Gatchalian, Joel Villanueva, Loren Legarda and Pia Cayetano.
With the bill already approved by the House of Representatives on third reading, FinTech Alliance.PH said it is hopeful for its swift passage in the Senate before the next legislative recess.
The FinTech Alliance.PH is the Philippine’s largest Industry association of fintech and digital players with over 100 corporate members, collectively generating more than 95 percent of digital-initiated transactions volume in the country.
