financial inclusion is one of the foundations of the philippine development plan 2017 to 2022, ambisyon natin 2040. ). the ultimate goal is to reach the unbanked and underserved populace. fintech can be leveraged to achieve this. jack ma, founder and executive chairman of alibaba expressed this by saying, “ fintech or techfin is to rebuild the system with technology … to solve the problem of a lack of inclusiveness. ” we believe in leveraging on digitization so that it is responsive to a broader economy. this is why we are also closely working with the national government for the adoption of a biometricbased foundational id system. build, build, building together ladies and gentlemen, this forum is an opportune time to encourage each one here — pillars of society, movers and shakers in the banking and financial industries, to all work together. the philippines is increasingly populated by young, tech - savvy ‘ millenials. ’ this growing customer - base prefers streamlined processes and products and services that can be accessed via electronic services. this market is on the lookout for new offerings. we can therefore capitalize on this opportunity by allowing fintech to come into play. the bsp is supportive of fintech innovations and see much potential in this area. indeed we are, as the forum ’ s briefer says, in an “ energized backdrop. ” i have said in several speeches before that fintech is borderless with varied and plenty players. this, constant engagement with fintech innovators, other regulators and industry players is important. this is to foster a deeper understanding of risks, gauge market conduct expectations 4 / 5 bis central bankers'speeches and inculcate appreciation for financial inclusion goals. i reiterate this today. on behalf of the bsp and the monetary board, i thank the organizers for the opportunity to share our initiatives with you today as we work toward a better philippines. mabuhay ang pilipinas. mabuhay tayong lahat. 5 / 5 bis central bankers'speeches

our regulatory issuances allowed a wider range, as well as expanded physical and virtual reach, of financial services. for example, we now allow third party retail outlets to function as cash agents as well as the implementation of reduced know - your - customer ( kyc ) rules for certain low - risk accounts and the use of technology to comply with kyc requirements. likewise, the bsp supports efforts to build financial infrastructure and viable ecosystems to facilitate a more equitable allocation of credit. earlier, we talked about the government ’ s thrust for infrastructure. part of bsp finfrastructure agenda is collaborating with other government agencies and industry stakeholders to deepen the local currency debt market, given its vital role in complementing bank lending to support longterm financing requirements of corporates and the government, particularly for its “ build, build, build ” program. as early as june last year, the bsp has started the groundwork for project financing under circular no. 914. last month, the monetary board approved amendments to streamline requirements of issuance of bonds and commercial papers by banks and quasi - banks ( qbs ), thereby providing them more flexibility in tapping capital markets as alternative funding source. these amendments, as embodied in circular no. 975, include the removal of required eligible collaterals. at the same time, just this month, we issued circular no. 976, which provide enhancements to the prudential reporting requirements over project finance exposures. it is important to sharpen bsp ’ s assessment of banks ’ exposure to project finance, given that demand is expected to pick up and gain traction as the country moves towards its infrastructure goals. complementing capital market development initiatives, we are also pursuing foreign exchange ( fx ) market reforms to deepen and increase efficiency of the fx market, and reduce cost of doing business. building finfrastucture with fintech technological development has significantly changed the business of banking and finance. financial transactions can conveniently be made on the move, in the comfort of one ’ s home, using a smart phone. there is a shorter turnaround time for financial transactions. nowadays, retail financial services are further being digitized via mobile wallets, payment applications, robo - advisors, equity crowd - funding platforms for access to private and alternative investment opportunities, and online lending platforms. these breakthroughs are revolutionalizing the financial landscape. sound finfrastructure is needed to support it. the bsp is actively