##banked clients. i am happy to share also that the bsp has made significant inroads with the implementation of the national retail payment system ( nrps ). the nrps implements our commitment to upgrade the country ’ s retail payment system by promoting electronic retail payments and facilitating inter - operability for faster settlement of transactions. the nrps will facilitate our transition from being a cash - heavy to a cash - lite economy. this will eventually bring benefits to the economy – in terms of speed and efficiency of transactions, reduced costs, improved transparency, enhanced security, and expanded access to financial services. last april, we launched instapay, the second automated clearing house under the nrps following the launch of pesonet. via instapay, filipinos can enjoy safe and affordable accountto - account electronic retail payments in real - time. transactors may send and receive funds or make payments in real time of up to p50, 000 per transaction. the transferred funds are instantly received in full as no fee is charged for the electronic crediting of funds to the receiving party ’ s account in instapay participating institutions. there is no reason why rural banks should not want to be part of pesonet and instapay. leveraging on technology and value chains with the digital transformation of the banking system, we, at the bsp, are optimistic that the rural banking industry can emerge as a strong and dependable delivery channel in the provision of banking services. it can do so by taking advantage of available technology. opportunities for growth may be seized should you cater to the needs of the young generation. studies show that fintech has great potential to transform financial services given the country ’ s young demographic profile. according to the world bank findex, 23. 5 percent of our population are composed of young adults ( between 15 to 24 years old ). the domestic digital money ecosystem certainly needs players, big and small, to meet the exacting demands of this new breed of clients. on this note, i am happy to report that one rural bank is already pilot - testing a cloud - based banking solution in managing its day - to - day operation more effectively and serving its clients more efficiently, thereby upgrading its competitiveness. meanwhile, several banks, including rural banks, and non - bank financial institutions are already utilizing the lendr platform to facilitate credit origination processes. still others are hooked up with a commercial bank on a block chain pilot. rural banks

amando m tetangco, jr : rural banks – portals of inclusiveness for juan and juana dela cruz speech by mr amando m tetangco, jr, governor of bangko sentral ng pilipinas ( bsp, the central bank of the philippines ), at the 62nd annual national convention and general membership meeting of the rural bankers association of the philippines, manila, 18 may 2015. * * * today, we gather to kick off your 62nd annual national convention and general membership meeting. you have set “ new vision, one direction, stronger organization ” as your theme for this conference, the same title as your 5 - year strategic plan. this is certainly a welcome initiative. it reflects the intent of the rbap to look ahead, define your strategic path and communally decide on the tactical actions needed to get you to your desired destination. the vision for rural development but to move forward and reach our destination, it will be useful to pause and also look back. for some, this suggestion may seem counterintuitive. prudence dictates that in creating a vision of what you wish to become, it would be useful to revisit the purpose for which the rural banking system was set up in the first place. republic act 7353 is categorical in that it speaks of “ the establishment of a rural banking system designed to make needed credit available and readily accessible in the rural areas on reasonable terms. ” ladies and gentlemen, the operative words here are : “ needed credit that is accessible on reasonable terms ”. in the simplest of words, this is the vision of the rural banking system. it is quite straightforward. but it is a vision that has turned out to be quite elusive to fully realize. shifting financial markets as we review the current markets we operate in, i would like us to consider two things. first, the broader and larger macroeconomic picture, and second, a more focused view of the improvements in technology and how we can harness this to our advantage. the big picture and technology i will not delve into the macroeconomic indicators that you traditionally hear me speak of during your events. instead, for today, what i would like us to appreciate is that our constituents ’ needs are changing. and these changes are reflecting rather fundamental shifts. with 64 consecutive quarters of economic growth to - date, one should expect to find some structural improvements at the grassroots. indeed, latest data seem to confirm such an improvement. in the global findex