BSP says digital financial inclusion goes beyond access

• Courtesy of BSP

The Bangko Sentral ng Pilipinas (BSP) said expanding access to digital payments alone is not enough to achieve financial inclusion, stressing that financial services must also be affordable, understandable, safe, and useful to Filipinos.

In a statement on Thursday, Aug. 14, the central bank said digital payments serve as an important entry point into the formal financial system, potentially opening access to savings, credit, investments, and insurance.

However, the BSP said several barriers continue to prevent Filipinos from fully participating in the digital financial ecosystem.

“Affordability is particularly important, as surveys indicate that cost remains among the key barriers cited by non-users of digital payments, while studies show that lower transaction fees can encourage greater usage,” the BSP said.

Beyond cost, the central bank identified account-opening requirements, maintaining balances, connectivity, access points, financial and digital literacy, consumer trust, safety, and ease of use as factors that can affect adoption.

To address these barriers, the BSP highlighted initiatives aimed at making digital financial services more accessible and practical for everyday use.

Among these are Basic Deposit Accounts, which are designed to be easier to open, require an opening amount of no more than P100, and carry no maintaining balance or dormancy charges.

The BSP also cited the country’s interoperable digital payments system, which allows users to conduct different types of transactions with greater ease, safety, and affordability.

For community-level payments, the central bank is promoting Paleng-QR Ph Plus, which encourages the use of QR payments among market vendors, tricycle drivers, and other community-based merchants to make cashless transactions more accessible.

The BSP is also using its BSP E-Learning Academy and broader financial education programs to improve financial and digital literacy, alongside consumer protection measures aimed at strengthening public trust in the financial system.

It also continues to encourage competition and responsible innovation among banks, e-wallets, fintech firms, and other financial service providers to give consumers more choices and potentially more affordable services.

But the BSP stressed that increasing access and usage is only part of the broader objective.

The central bank said financial inclusion should ultimately translate into improved financial health, allowing Filipinos to manage daily expenses, save for their needs, obtain appropriate credit and insurance, withstand financial shocks, and build a more secure financial future.

As lead implementer of the National Strategy for Financial Inclusion, the BSP said it continues to work with government agencies and private-sector partners to address barriers and ensure financial services result in meaningful improvements in people’s lives.