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

and risk markedly within the financial sector ( chart 3 ). this is not to be complacent. 25 the magnitude of interest rate cycles across the uk, us and ea have varied. over both loosening and tightening cycles between 1994 and 2007, the average cumulative change in interest rates in the uk has been around 150bps in the uk, compared to around 250bps in the ea and around 275bps in the us. all speeches are available online at www. bankofengland. co. uk / news / speeches aggregates can hide significant problems. in some advanced economies, particularly the us, corporate debt has, as i have noted, been growing at a very fast rate accompanied by a loosening of underwriting standards. and to the extent that financial asset prices are being driven either by unrealistic expectations either of interest rates or of economic growth, there could be a sharp correction. chart 2. total debt stock in chart 3. financial sector debt in advanced economies advanced economies per cent of gdp japan uk mature markets us euro area per cent of gdp excluding financial sector debt including financial sector debt 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 source : iif global debt monitor. source : iif global debt monitor. moreover, debt in emerging markets grew much faster than gdp between 2011 and 2016. chinese debt - to - gdp ratios have risen particularly sharply and are now very high. whilst the growth rate of the aggregated global debt stock has moderated more recently, the level remains high by historical standards – as one might expect in a low for long world. while this may not in itself cause or presage a correction, it could well amplify one, making the global economy more vulnerable to adverse macro - economic shocks26. 26 research suggests that it is the growth rate of debt rather than its actual level that is the leading indicator of financial crises. bank of england work based on 130 downturns in 26 advanced economies since the 1970s suggests that a rapid build up of debt is the best early warning indicator of a recession. see for example bridges et al ( 2017 ), carney ( 2019b ) and schularick and taylor ( 2012 ). all speeches are available online at www. bankofengland. co. uk / news / speeches this perhaps illustrates that the risk to financial stability from monetary policy may come not so much from the use of monetary policy tools to stimulate demand. rather, it may come from the risk