CALAMBA CITY (PIA) – Local government units can foster financial inclusivity by supporting initiatives that aim to digitalize financial transactions in the country.
Atty. Dennis Gamaya, Bangko Sentral ng Pilipinas (BSP) Lucena branch director said that financial literacy, such as opening bank accounts, can help improve the public’s access to government financial assistance and other programs.
“From the perspective of the BSP, we see the expansion of what we call financial inclusion. More and more citizens now have bank accounts. These bank accounts are not only useful for financial transactions but also make it easier to pay government fees or receive funds from the government quickly,”
Paleng-QR Ph Plus, a program developed by the BSP and the Department of the Interior and Local Government (DILG) emphasizes the role of local government units in promoting policies that encourage the use of digital payments, particularly in public markets and transportation.
The BSP is also collaborating with digital payment service providers to develop a consolidated and comprehensive program.
“Unlike individual onboarding efforts, this program is consolidated and comprehensive. It will be implemented on a broader scale through the LGU to ensure wider and more inclusive coverage.”
The program is just part of the BSP’s 2020-2023 Digital Payments Roadmap, which aims to have 50 percent of financial transactions in the country conducted digitally.
The BSP estimated that digital payments and transactions grew to 20 percent in 2020, at the height of the Covid-19 pandemic, when nationwide community quarantines restricted physical access to banks.
Although the World Health Organization (WHO) declared in 2023 that Covid-19 was no longer a Public Health Emergency of International Concern (PHEIC), the use of online and digital payment channels has continued to grow.
“The pandemic contributed to the use of digital payments that lessens face-to-face transactions because we no longer use physical money. We learned from the pandemic that physical money could be a mode of transmission of viruses.”
Digitalizing financial transactions also helped combat the widespread use of fake and counterfeit money, a persistent issue the national bank continues to address.
Financial inclusivity also encourages vendors and consumers to create their online banking accounts and e-wallets to securely store their savings.
Gamaya emphasized: “Instead of keeping cash in wallets, digital payments now require individuals to have their e-wallets. Alternatively, they can convert their savings accounts into e-wallets or online bank accounts,”
“It is important to be informed about the benefits and security features of digital payments to reduce risks. Having an open mind to understand the advantages of this program and how it can help us is essential.”
While the BSP urges the public to embrace digital payments, Gamaya reminds users to remain vigilant in their transactions.
“At the same time, we need to stay vigilant, as there are malicious individuals who may take advantage. We must be cautious about what we click on and the personal information we share.” (PB/PIA 4A)
