By Victoria “NIKE” De Dios
With the need to adapt to embrace digitalization of all transactions whether in logistics, purchasing, and financial transactions, the Fintech Alliance.ph and the digital industry totally are one with the Bangko Sentral ng Pilipinas (BSP) in advocating wider access to telecommunication for financial transactions. The BSP is pushing to fill in the digital gap through legislative measures to further promote financial inclusion especially to the grassroots communities.
In the study conducted by the BSP, three out of five adults in urban areas own a smartphone while two out of five in the rural areas have access to one. This shows the digital disparity between urban and rural areas. Having said this, it is empirical to capitalize on this opportunity and embark on ramping up financial and other transactions through open data transmission.
“We have a relatively high mobile phone and internet access penetration, but these digital assets are underutilized for financial transactions. In fact, seven in 10 unbanked adults have a mobile phone. This is an untapped opportunity for digital finance”, said BSP Governor Benjamin Diokno.
Diokno particularly supports Senate Bill No. 45 or the Open Access Data Transmission Act which will remove the need for congressional franchises for the broadband industry and streamline the registration procedure. The bill and its House counterpart, House Bill No. 54 have been pending since 2019.
Fintech Alliance and the whole digital industry call on lawmakers to pass both measures as important factors to ease up access to digital telecommunication and the advancement of financial inclusion especially to the unbanked which makes up 70% of the population.
“We really need these enabling laws to empower the marginalized on the digital platforms and hasten their financial inclusion especially during this time of the pandemic where we actively promote digital payments creating robust and dynamic cash-lite economy”, said Lito Villanueva, Fintech Alliance Chairman, and RCBC Executive Vice President and Chief Innovation and Inclusion Officer.
Meanwhile, the BSP is planning to look into satellite operations as possible means to promote internet connectivity in rural areas.