in fact show that there is significant opportunity to expand the delivery of basic financial services through digital channels. this is especially true considering that 7 in 10 unbanked adults have a mobile phone. looking at usage trends, 53 % of adults use the internet and they use it extensively. on average, people spend 11 hours per day on the internet with 4 hours spent on social media. however, only 9 % use the internet for financial transactions. in addition, 69 % of adults have mobile phones. three - fourths of these mobile phone owners own a smartphone. however, only 12 % use their phones for financial transactions. while the trends show low adoption of digital finance, its potential can be realized by addressing two key issues : digital literacy and connectivity. promoting digital literacy increases awareness 1 / 3 bis central bankers'speeches and trust in online financial transactions. internet connectivity is a necessity to access digital products and services. if left unaddressed, literacy and connectivity challenges can lead to new forms of exclusion and greater digital divide. deliberate efforts to narrow the digital divide on the other hand can increase the reach of financial service providers. the philippine identification system ( philsys ) is a game changing reform for accelerated financial inclusion and innovation. as a digital identity system, philsys can facilitate seamless financial transactions, particularly account onboarding and user - permissioned data sharing. the bsp is actively supporting philsys implementation not only in the production of the philid cards but also in the development of high - impact philsys use cases in the government and financial sector. the philippine statistics authority ( psa ) has done commendable progress as lead implementing agency with 44 million filipinos completing the biometric and demographic registration, and 3. 5 million philid cards delivered to date. as we move towards the fourth industrial revolution, data has truly become the new oil and is now the most valuable resource. however, like oil, raw data in and of itself has little value until it is refined and used intentionally. for the financial industry, data is critical because it helps ensure that products and services are appropriately designed and responsive to the varied needs of individuals. to this end, the bsp undertakes initiatives to increase the availability of consumer data. one of which is the implementation of the open finance framework. the framework adopts the principles of consent - driven data portability, interoperability, and collaborative partnerships among incumbent financial institutions and new third - party players. through open finance, financial institutions will

benjamin e diokno : data - driven road to digital financial inclusion speech by mr benjamin e diokno, governor of bangko sentral ng pilipinas ( bsp, the central bank of the philippines ), at the transunion and fintech alliance webinar, 6 december 2021. * * * members of the fintech alliance of the philippines headed by chairman lito villanueva, transunion chief revenue officer jay tirona, fellow public servants, financial inclusion partners, and fintech innovators, good afternoon. it is my pleasure to welcome participants to this webinar as we continue to discuss valuable insights and best practices in financial inclusion. the fintech industry is a pioneer in using data - driven strategies that give rise to innovations and enhancements meaningful to the users of financial services – offering accessibility to financial channels, creating user - friendly platforms, and providing reasonable costs, to diverse market segments. financial regulators likewise utilize data in formulating supervisory and regulatory policies that are responsive to the needs of financial consumers and address the evolving complexities of financial products. for the bsp in particular, the pandemic has strengthened our resolve to promote broad and convenient access to welfare - enhancing financial services for all filipinos. a lot of work still lies ahead, but the momentum to achieve these goals is now stronger than ever. the bsp is ready to carry the work forward through 2021 and beyond. financial inclusion is multidimensional, but at its most basic level, it starts with account ownership. transaction accounts like bank accounts and e - money wallets enable individuals and households to save money ; make day - to - day payment transactions ; send or receive remittances ; and receive salary, benefits, or financial assistance from the government. in this regard, the bsp with its digital payments transformation roadmap aims to onboard 70 % of filipino adults to the formal financial system through a transaction account by 2023. it is important to recognize however that rather than being an end in itself, financial inclusion is a means to achieve broader aspirations. the regular and continuing use of an account in particular, allows individuals and small businesses to build a rich digital footprint that can unlock access to a wider range of welfare - enhancing financial services. today, digital technologies provide an opportunity to accelerate financial inclusion. it facilitates efficiencies that make it possible for financial service providers to serve the unbanked and underbanked. mobile phone and internet usage in the philippines