Groups Call for More Remedies to Hasten Financial Inclusion Goals
The government ought to double down its
initiatives on open finance, as it races to achieve its financial inclusion
goals this year, according to the European Chamber of Commerce of the
Philippines’ (ECCP) Special Committee on Open Finance and Financial Inclusion
(SCOFFI).
As the new administration assures that it will
prioritize digital transformation on a national scale, the ECCP-SCOFFI believes
that it is high time that the government places more premium on the development
of policies and the rollout of more open finance initiatives in the country.
Open finance allows industry players to create
customer-centric products and provide better access to critical financial
services such as savings, insurance, and credit. This year, the Bangko Sentral
ng Pilipinas (BSP) aims to bring at least 70 percent of adult Filipinos into
the formal financial system, but as of 2022, 47 percent of the population
remains unbanked.
“With multiple economic crises at present and a
looming global recession ahead of us, financial inclusion should be emphasized
now more than ever. The inclusion of multiple economic sectors in the
Philippines is crucial, especially considering that we are still recovering
from the impact of COVID-19 and many challenges are already being posed by the
circumstances in the post-pandemic era. As staunch advocates of inclusivity, we
at ECCP-SCOFFI vow to support the government’s endeavors towards financial
inclusion and open finance,” ECCP-SCOFFI Chairman John Januszczak said.
Januszczak, who also sits as president of UBX,
the leading open finance platform in the Philippines, added that open finance
can help in rebuilding the economy by strengthening digital businesses.
He cited a Google and Temasek study that
predicted that the Philippine digital economy, currently valued at $20 billion,
is expected to maintain an upward trajectory to as much as $150 billion in the
next decade.
“This trend highlights the urgent need for the
government to accelerate its digital transformation initiatives to maximize the
potential of the digital economy. Digital finance will be the bedrock of
digital transactions. Through open finance, we can help reduce finance and even
social inequalities in the Philippines,” Januszczak said.
Under Januszczak’s leadership, the UBX
supported the government’s open finance initiatives through several projects.
Digital Transformation ng Pilipinas
(DigiPinas), a UBX-led multisectoral initiative for digital transformation in
the government, was launched in 2022. DigiPinas aids the government in crafting
policies related to digital transformation, geared towards solving age-old
problems such as low digital adoption, lack of awareness, gaps in access,
digital skills gap, and complex regulations.
DigiPinas also helped in bringing digital
solutions to the national and local governments, especially those that are in
the far-flung and rural municipalities.
UBX also launched last year Project Kasama sa
Lahat with the Philippine Postal Corp. (PhilPost), which is currently
transforming hundreds of its post offices nationwide into modern hubs that
offer financial and data services to far-flung areas.
In addition to widening its geographic scope,
open finance also seeks to benefit the micro, small and medium-sized
enterprises (MSMEs), which include sari-sari stores, carinderia, and fish
stalls that rely on loans to sustain their businesses.
Moreover, UBX’s SeekCap, its online lending
platform, provided entrepreneurs access to loans that they need to expand their
businesses.
Additionally, i2i, the banking-as-a-service
platform of UBX, empowered MSMEs to become cash agents, enabling them to
process financial transactions similar to banks.
“Achieving financial inclusion is not just a
one-man agenda. It requires cooperation among all those involved, but it must
be emphasized that the government must be at the forefront of this campaign. I
have full faith in our leaders that they will call upon the best people for the
job in promoting its open finance initiatives,” Januszczak said.
Established to promote financial inclusion in
the Philippines, ECCP-SCOFFI provides an avenue for stakeholders to discuss
issues and solutions to the status quo while fostering financial inclusion
through technology. Together with UBX, the Special Committee has been a big
help to the BSP when it comes to formulating open finance standards and
procedures for better implementation.
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