Bangko Sentral ng Pilipinas Governor Felipe Medalla said Tuesday digitalization would spur not only financial inclusion but also stimulate economic growth.
“Over time, the rest of the economy will get better due to digitalization… The economy will become more efficient. The more this is done, the better we will be,” Medalla told participants of FinTech Alliance INDX 2.0 Accelerating the Digital Economy.
Medalla cited as examples PESONet and Instapay—two automated clearing houses launched earlier by the BSP—where people found their usefulness, especially during the pandemic, as they avoided face-to-face financial transactions.
BSP data showed that the value of PESONet and InstaPay transactions increased in the first seven months of 2022.
The combined value of these two payment facilities rose 43 percent year-on-year to P5.37 trillion. Combined transactions volume jumped 24 percent year-on-year to 348 million from a year ago.
The expansion was in line with the BSP’s goal to digitalize 50 percent of retail payments in the country.
Medalla said the role of fintech goes beyond finance. He said it would also change many things, including people’s contribution to global warming.
“It must be built on very sound pillars which is the development of digital payment scheme and digital finance infrastructure,” Medalla said.
Under its Digital Payments Transformation Roadmap, the BSP aims to convert 50 percent of total retail transactions to electronic channels and increase the number of Filipino adults with bank accounts to 70 percent by 2023.