BSP Heightens Digitization Efforts to Help Small Enterprises in the Philippines
The Bangko Sentral ng Pilipinas (BSP) is continuously streamlining capacity building and technical assistance for the digitization drive of microfinance and micro-entrepreneurs.
BSP Governor Benjamin Diokno stated that the central bank is committed to initiating digitization efforts and programs that support the microfinance sector and micro, small, and medium enterprises (MSMEs).
Diokno noted, “Our initiatives include bringing digital payments closer to the people by promoting its use in the most common transaction points for most Filipinos – the community markets and local transportation services such as tricycles.”
Diokno led the virtual launch of the 1st Digital Financial Inclusion Awards (DFIA) to emphasize the achievements and contributions of the country’s microfinance institutions (MFIs) and micro-entrepreneurs in relation to executing digital solutions.
BSP continues to support the initiation of the Republic Act (RA) 11055 or the Philippine Identification System (PhilSys) to ease and improve the onboarding capability of MFIs.
In addition, the BSP also pursues efforts to encourage responsible use of alternative data to benefit both MSMEs and unbanked individuals with little to no credit record.
The DFIA program is a financial inclusion drive financed by Citi Foundation, in partnership with Microfinance Council of the Philippines Inc. and supported by Citi Philippines together with BSP.
Citi Philippines Chief Executive Officer (CEO) Aftab Ahmed expressed, “Through DFIA, we hope to make a meaningful difference in the communities we live and work in. Our goal is to see micro-entrepreneurs flourish and prosper.”
The first part of the awards program focused on recognizing MFIs and micro-entrepreneurs who have strongly adopted digital solutions. Those awarded took part in driving more MFIs and micro-entrepreneurs to utilize new digital technologies and integrate them into their business practices.
Four MFIs are to be recognized after they successfully implemented digital solutions in their entities, along with them are 20 micro-entrepreneurs who have remarkable achievements in improving their firms through digital solutions.
Aside from switching 50% of total retail transactions to digital channels, BSP aims to elevate the number of Filipino adults with bank accounts to 70% by the year 2023 under the Digital Payments Transformation Roadmap.