Rural Bankers Association of the Philippines 67 th Annual National Convention 26 June 2020
Local Digital Landscape 58% 159% Unique mobile user SIM penetration penetration Average time spent on internet 9 hours 67% and 45 Filipinos are active minutes internet users per day Sources: We Are Social (2020) GSMA 2019
Financial Services 23% of Filipino adults have an account 68% E-money of savers keep their transactions 39% savings at home 119 M, PhP 546 B inflow of borrowers obtain their loans from informal sources 406 M, PhP 544 B outflow Digital payments 28% 20% out of USD 118 B (value) mobile banking 10% out of 4.4 B (volume) penetration Sources: BSP Financial Inclusion Survey (2017); Financial Inclusion Dashboard (Q3 2019) Better than Cash Alliance (2018) We are Social (2018)
BSP Policies Enabling Digital Inclusion Efficient retail Expansive network Democratized access payment of low-cost touch to a transaction system points account ✓ 119 banks offering Basic ✓ 55 PESONet banks generating ✓ 11 banks with 17,ooo cash Deposit Accounts to 3.1 12 million transactions agents that offer a full million depositors with total amounting to P1.2 trillion range of transactions such deposits of P2.7 billion (Q3 (2019) as deposits, withdrawals ✓ 31 InstaPay banks generating 2019) and bills payment (2019) ✓ 43 e-money issuers have ✓ 96% of cities and 34 million transactions opened 50.8 million e- amounting to P260 billion municipalities have at least money accounts (2018) (2019) one access point (Q3 2019) Strengthened financial consumer protection ✓ Risk-based, flexible consumer protection risk management system ✓ Clear consumer protection standards of conduct ✓ Expanded reporting on complaints data ✓ Upcoming deployment of chatbot for complaints handling
Consumer Perspective on DFS Adoption Source: BSP Financial Inclusion Survey (2017)
Complaints by Channel 2019 Automated Teller Machine 65% Internet Banking 11% Phone Banking 8% Third Party 5% Other Channels 5% Mobile Banking 4% Over-the-Counter/Branch 1% Telegraphic Transfer/Swift 0% Source: BSFIS’s Consolidated Complaints Report (2019)
Complaints by Standard of Conduct 700,000 600,000 500,000 400,000 300,000 200,000 100,000 79% 14% 4% 2% 0% - Effective Fair Treatment Disclosure and Protection of Financial Recourse Transparency Client Education and Information Awareness Source: BSFIS’s Consolidated Complaints Report (2019)
Digital Finance Barriers Cybersecurity fears, Product design, Data privacy threat of fraud suitability, affordability concerns Inadequate digital Absence of, or unclear Interoperability legislation or regulation infrastructure issues, new providers Source: Organization for Economic Cooperation and Development (2018)
Digital Imperative for the New Economy Robust digital infrastructure Digital ID E-government DIGITAL Enabling LITERACY legal/ regulatory framework Images: Freepik.com
ePayments Pre-ECQ, During ECQ 74% growth in volume 24% decline in volume ATM Witdrawals 42% growth in value 13% decline in value 67% decline in volume Checks 62% decline in value Note: 76 days pre-ECQ versus 76 days during ECQ Sources: BSP FinTech Sub-Sector, Philippine Clearing House Corporation and Bancnet
Digital Literacy Program BUILD TRUST INCREASE USAGE
https://www.facebook.com/PisoLit ePayments Campaign https://instagram.com/piso.lit https://twitter.com/PisoLit Program Partners United States Agency for International Development Bankers Association of the Philippines FinTech Alliance Philippines Bank Marketing Association of the Philippines Information Security Officers Group Credit Card Association of Philippines Philippine Payments Management Inc.
BSP Financial Education Partnerships 29 Million 800,000+ Learners Teachers 1 Million 2.3 Million Civil Servants* OFWS 14 Million 140,000 Filipinos Abroad Armed Forces 1.9 Million 1.4 Million Fisherfolk MSMEs 1,000+ 10 Million DTI Negosyo Centerss CCT/UCT Beneficiaries *Excludes DepEd teachers
Financial Health for Filipinos An individual is financially healthy when he or she: Balances income and Plans and prioritizes needs expenses over wants Manages and recovers from Uses a range of financial and economic financial tools, shocks products and services Manages existing debts and Builds wealth and maintains has access to potential reserves resources Source: Center for Financial Services Innovation, Beyond Financial Inclusion: Financial Health as a Global Framework, 2018
Positive Consumer Experiences with Rural Banking Services
Thank you. Rochelle D. Tomas Deputy Director Consumer Empowerment Group Center for Learning and Inclusion Advocacy TomasRD@bsp.gov.ph
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