The Bangko Sentral ng Pilipinas (BSP) has launched several important initiatives to improve how people access and use financial services, making a significant impact nationwide. Some of the more recent ones are discussed below.
Making financial services accessible to all
One of the BSP’s major efforts is the Paleng-QR Ph Plus Program, developed with the Department of the Interior and Local Government. This initiative has changed how small business owners, like market vendors and transport workers, handle money by introducing them to QR payments. Since its start in June 2022, the program has grown rapidly, with 70 local governments implementing it and a significant increase in new user accounts, demonstrating a growing comfort with digital transactions among small entrepreneurs.
The BSP also tackled the challenge of getting loans to small and medium-sized businesses with the Credit Risk Database, introduced in April 2023. This tool helps banks assess loans without needing as much collateral, making it easier for businesses to get the funding they need. It is now used by 33 financial institutions, making lending fairer and more accessible.
Banking services are reaching more households than ever, with the BSP’s survey showing that nearly 71 percent of Filipino households had transaction accounts by late 2023. The increase in simple bank and electronic money accounts has been impressive, thanks in part to a strategy linking these accounts to the Philippine Identification System.
Strengthening protection for financial consumers
On the consumer protection front, the BSP has set strict rules with Circular No. 1160, or Regulations on Financial Consumer Protection, which ensures that all financial products and services, especially digital ones, are safe for consumers. Following this, financial institutions were required to evaluate their services and make plans for improvement, boosting consumer confidence in the safety of their transactions.
The BSP has also improved how financial complaints are handled by setting up a more direct way for consumers to resolve disputes without going to court. The BSP’s Online Buddy chatbot managed over 43,000 complaints in 2023.
Boosting financial knowledge
Lastly, the BSP is working to make Filipinos more financially knowledgeable through an e-learning platform. This initiative, set to run from April 2024 to April 2025, will allow hundreds of learners each month to take online courses that enhance their understanding of finances.
These initiatives were acknowledged by Her Majesty Queen Máxima of the Netherlands, the UN Secretary-General’s Special Advocate for Inclusive Finance for Development, during her visit in May 2024. She noted the significant progress in financial inclusion since her last visit in 2015. She underscored the need for collaborative efforts between the government and the private sector to bring financial services to everyone.