the nsfi as our road map, we focus on achieving financial inclusion that promotes inclusive growth, consolidate our efforts to avoid overlaps, and together set priorities to maximize use of our resources. the nsfi spells out high - level principles and systematic strategies ; guides coordination across government and private sectors ; ensures policy and program cohesion ; and promotes multi - sectoral synergies. in particular, the nsfi lays down precise objectives : ( 1 ) financial products that are diverse, well - designed, suitable and relevant to different market segments ; ( 2 ) providers and business models that are diverse, responsible, responsive and innovative ; and ( 3 ) a citizenry that is financially - learned and adequately protected. the goal is to mainstream filipinos across the country as regular clients of our financial system, particularly ( 1 ) msmes, ( 2 ) overseas filipinos and their beneficiaries, ( 3 ) agriculture and agrarian reform sectors, ( 4 ) indigenous peoples and cultural minorities, ( 4 ) women, bis central bankers ’ speeches the youth, ( 6 ) and persons with disabilities. these sectors are typically unserved or underserved by conventional financial service providers. indeed, we have set high expectations. nevertheless, while i am optimistic these can be achieved, i am also realistic that there are challenges we need to address. for this keynote address, i will not focus on these challenges ; rather, i will highlight three elements which i believe are essential in overcoming challenges and in achieving a quantum leap in financial inclusion. first is research and measurement ; second is purposeful action and innovation informed by research ; and third is convergence of objectives and actions across domestic, regional and international arenas. building up research, data and measurement let me expound on the first of these three elements - - building up research, data and measurement. ladies and gentlemen. time and again, we have seen that rigorous research can lead to breakthrough knowledge and innovations. this is also true for financial inclusion. among others, present research in behavioral economics, psychometrics, big data analytics, virtual mapping and imaging technology are allowing us to understand the excluded : who and where they are, what they need, and how they want to be served. the new information is opening up opportunities for new players, giving rise to exciting platforms and more efficient channels with the potential to positively “ disrupt ” the financial inclusion landscape. i am glad to note therefore that our summit will tackle new trends and technology that could catalyze a quantum leap

inclusion. to truly unlock the potential of digital innovations for inclusive finance, we need to build pillars that enable and promote the use of digital finance. the first pillar is the digital infrastructure. indeed, digital connectivity is a pre - requisite for digital finance. yet, speed, affordability, and availability of internet connectivity are important factors that determine adoption of digital finance, particularly in the rural areas. overcoming the barriers to digital connectivity will not only promote accessibility to digital financial products, but will allow innovators to improve the design, enhance security features, and drive down the cost of financial services. another important infrastructure is the digital id system which is why the bsp is looking forward to the implementation of the philippine id system or the philsys. beyond its ability to address the lack of identity documents commonly cited as a barrier by the unbanked, the philsys through its electronic kyc feature can significantly reduce the cost of onboarding new clients by as much as 80 % based on a study commissioned by the asian development bank. such a digital id system can also enable the delivery of innovative end - toend financial services. the second pillar would be the digital payments use cases. it is not enough that people are able to easily open a transaction account. people should see the necessity of an account and be able to use that account for various payment transactions on a regular basis. what can compel people to open a transaction account? for the wage earners and informal workers, receiving wages and social benefits is one. being able to use a mobile phone to pay market vendors, jeepney drivers, utilities and online purchases is another. 3 / 5 bis central bankers'speeches the regular use of transaction accounts will not only catalyze digital payments but also enable the account holder to build a richer digital footprint for his credit profile. this is the focus of our intensified coordination efforts with the department of social welfare and development, the department of labor and employment, and the department of transportation. to provide the public with digital payment options for transactions with government, we are working closely with the payments industry and the department of finance and the department of budget management on the development of a bills payment platform and on possible policies to address implementation barriers. the third pillar is user trust and readiness. if people do not trust, understand or know how to use digital financial services, people will not use these products even if they are affordable and convenient. to this end, we are committed to our partnership with various public and