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

private entities to promote financial and digital literacy in the country. we also continue to engage the fintech industry, the department of information and communication technology and the national privacy commission to promote cyber - resilience and data privacy in digital finance. it is also necessary to provide an accessible venue for consumers to engage the regulators for concerns regarding their use of financial services as a way to build confidence in these products. and this is why we have undertaken a chatbot project for consumer complaints and issues handling. i am happy to share that this project, and our regtech project on prudential reporting, have earned the bsp two innovation awards from the central banking publications in singapore last september 4. indeed, the imperatives of financial inclusion go beyond enabling regulations and require coordinated programs across the government and private sector. i hope that by explaining these pillars, i was able to give you a sense of the breadth of the work that we need to do and support. i hope that in understanding why financial inclusion matters, you will leave this conference with a genuine interest to find ways on how you and your companies can contribute to financial inclusion. allow me therefore, before i close, to throw in some ideas. consider this my call to action for this body. as businesses, you may be operating in a value or supply chain over which you can exert influence. examine the actors in these chains ; you may have as suppliers or buyers the small businesses, microentrepreneurs and farmer groups. think of how you can leverage your role in the chain so they can access better credit terms from the banks and other lenders. for companies that collect customer data, you can explore ways on how you can empower these customers to use their data for their credit profile so they can access better financing. empower your customers to use their data for welfare - enhancing pursuits. if there are workers in your supply chain who are paid cash, perhaps you can ensure that they be given a transaction account where they can receive their wages. another way that your company or even this body as a collective can support financial inclusion is to advocate with legislators for policies and infrastructure that can help promote access to finance of the smes and farmers. for instance, the warehouse receipts system bill can support farmers by providing them the tools to manage commodity price risks and to access financing using warehouse receipts as collateral. 4 / 5 bis central bankers'speeches there ’ s also the financial consumer protection bill that provide all financial sector regulators with the necessary powers