Eli M Remolona: Digital bridges for financial inclusion
Speech by Mr Eli M Remolona, Jr, Governor of Bangko Sentral ng Pilipinas (BSP, the
central bank of the Philippines), at the Media Launch of the 3rd Digital Financial
Inclusion Awards, Manila, 20 March 2024.
* * *
Magandang hapon sa inyong lahat.
We at the Bangko Sentral [ng Pilipinas] (BSP) are pleased to launch the third Digital
Financial Inclusion Awards (DFIA) in partnership with the Microfinance Council of the
Philippines, Inc. (MCPI). The MCPI is led by Gilbert Maramba and Paul Favila [for] Citi
Philippines.
This event shows the strength of the partnership among MCPI, Citi, and the BSP in
promoting financial inclusion through the digitalization of microfinance.
Parang bagoong sa kare-kare.
I think digitalization is the secret sauce.
So, we thank the members of the national selection committee of our awards program.
They have chosen inspiring leaders from a broad cross-section of our economy.
All these leaders shared their time and expertise to support financial inclusion through
the digitalization of microfinance institutions (MFI).
To us at the BSP, financial inclusion is an undertaking that requires a whole-of-nation
collaboration. Every form of support matters, whether from the private sector, NGOs
[non-government organizations], multilateral institutions, local governments,
microentrepreneurs, microfinance institutions, or the media.
The National Strategy for Financial Inclusion (NSFI) of 2022-2028 defines financial
inclusion as a state where everyone, especially the vulnerable, has access to a wide
range of financial services.
To us, microfinance remains integral to the initiatives and programs in the NSFI.
Here is where we stand.
As of the third quarter of 2023, 138 banks engaged in microfinance served
approximately 1.9 million borrowers.
Non-bank microfinance institutions, such as cooperatives, supported 9.7 million
members by the end of 2021.
Microfinance NGOs catered to 6.6 million clients as of 2022.
If microfinance institutions adopt innovative financial services, especially through
digitalization, we expect additional benefits that would generate better reach and better
quality of services.
This is where the DFIA program comes in. The DFIA focuses on recognizing
outstanding MFIs and microentrepreneurs who have successfully adopted digitalization
in their operations.
By encouraging innovation in microfinance, we hope to inspire more organizations to do
the same.
As we promote increased access to credit through digitalization, let us remember that
microfinance is not only about borrowing. Microfinance also provides access to savings,
investments, and insurance.
These tools will enable the vulnerable to better manage their resources and protect
themselves against certain risks. This resilience is about the overall financial health of
microentrepreneurs.
So, digitalization is a bridge that connects financially underserved segments of the
population to providers of formal financial services.
So, let us build more digital bridges so that everyone may enjoy the benefits of financial
inclusion.
Thank you all for your continuing support. Magandang hapon sa inyong lahat!