MANILA – The global pandemic has provided the Bangko Sentral ng Pilipinas’ (BSP) financial inclusion and digital transformation’s bid further boost opportunities now abound for financial technology (fintech) firms.
In his speech during the virtual forum on fintech’s role in pump-priming the economy hosted by Fintech Alliance PH Wednesday, BSP Governor Benjamin Diokno said the coronavirus disease 2019 (Covid-19) pandemic raised the urgency for needed reforms on public health, social safety nets, disaster response, and countryside development.
“But what reinforces all these reforms is the digital imperative. There is no arguing that the new economy is digital,” he said.
Diokno said post-Covid-19 digital transactions will be a key factor for a more inclusive economy that it is why it is vital for a robust digital infrastructure, digital skills, electronic government (e-government), digital identification, and an enabling legal and regulatory framework.
He said the BSP vows to increase to at least 50 percent the share of digital retail payment transactions, and to have 70 percent of the adult population having and using transaction accounts by the end of his term in 2023.
Diokno said the central bank has formulated a three-year digital payments transformation map, which includes open banking and the fintech sector will find great opportunities under this goal.
He said fintech players can provide solutions on loan origination and underwriting platform for the government’s direct lending program, as well as provide digital solutions for micro, small and medium enterprises’ (MSMEs) that will now tap e-commerce.
“The fintech community has a lot to look forward to and even more to contribute in the shaping of the new economy –one defined by shared and sustainable prosperity. With our collective efforts, may we be able to look back at this crisis with no regrets for wasted opportunities,” he added.