BSP’s Diokno bats for stable, reliable internet to boost digital payments, financial inclusion

Bangk Sentral ng Pilipinas (BSP) Governor Benjamin Diokno on Friday said internet connectivity and reliability will play a vital role in boosting digital payments ecosystem and financial inclusion in the country.

“We know that for digital payments to flourish in our society, we need to have reliable and stable internet connectivity. Digital connectivity is a critical enabler and a necessity in the new economy,” Diokno said in his remarks during the Ulat ng BSP sa Bayan.

Ulat ng BSP sa Bayan is the virtual counterpart of the Bankers’ Night held yearly at the central bank headquarters in Manila.

Diokno said the Financial Inclusion Steering Committee (FISC), of which the BSP is a member, endorsed the Open Access to Data Transmission Bill as priority legislation to the Legislative-Executive Development Advisory Council.

The bill aims to address Internet infrastructure gaps by bringing in more players to the broadband sector.

In December 2020, the FISC also endorsed to the Office of the President a proposed Executive Order that aims to liberalize access to satellite technology for broadband services and fast-track the expansion of Internet infrastructure to improve connectivity in underserved communities and rural areas as well as accelerate financial inclusion, according to the BSP chief.

“All these fit in nicely in our 2020-2023 Strategy of bringing the BSP closer to the people—to become the central bank that understands their needs and helps them achieve their aspirations in life,” Diokno said.

He said that digitalization helps create opportunities for people to “improve their lives and participate in the economic and financial system.”

“Through digital payments, we also promote financial inclusion. Digital payments help consumers engage in easier and safer economic activities,” he said.

The central bank chief said that last year, the combined value of InstaPay and PESONet transactions for 2020 likewise jumped by 929%.

The volume of PESONet transfers alone rose to 15.3 million in 2020 to reflect a 376% growth, while the value of transactions grew 188% to P951.6 billion. 

PESONet was launched in 2017, enabling the government, businesses, and individuals to initiate electronic fund transfers and recurring payments in financial institutions supervised by the central bank within the same banking day.

For InstaPay, the volume rose 459% to 86.7 million transactions valued at P463.4 billion or 340% higher than the previous year.

Launched in April 2018, InstaPay is an electronic fund transfer (EFT) payment system that enables individuals to wire funds across banks in real-time.

The digital innovation initiatives of the BSp forms part of Diokno’s  “personal goal” to make least 50% of the country’s total financial transactions be done digitally, and at least 70% of Filipino adults have financial accounts.

“On a wider scale, it also helps reduce poverty and hunger; promote good health and well-being; ensure quality education, decent work, and gender equality; develop sustainable communities, and a lot more,” he said.

“The current crisis has given us an opportunity to think out of the box and be bold, as we work to protect the interests of the people we serve. It showed us what to focus on, as a BSP closer to its people,” he added. — RSJ, GMA News