this is actually what triggered us to move in this direction. studies show that 98 percent of unbanked filipinos can be banked through electronic channels. mobile phones, especially smart phones, of which the country has a very high penetration rate, can be particularly used for this purpose. enabling regulations for all these reasons, the bsp is pushing nrps forward. our task is to enable you – industry players, stakeholders, payment service providers and end users, to actively participate in the nrps. we do this through policy formulation and regulations. keeping our financial stability mandate in mind, we have issued regulations to encourage the growth of financial innovations including those linked to payments. recently, the monetary board approved the nrps framework, now issued as bsp circular 980. this framework sets out the overarching principles that will govern the retail payment system. the objective is to achieve greater interoperability among payment participants so that a wide range of electronically - accessible payment products and services can be made available anytime, at the least possible cost. in support of electronic payments, the bsp will also continue to work with other government agencies in developing a biometric foundational id system to enable access to government and financial services. another upcoming regulation pertains to the offering of basic deposit accounts or bdas which will further support client on - boarding. designed as a low cost, low friction account, everyone can now aspire to have a transaction account that connects him or her to the digital financial ecosystem that the nrps is creating. in order to protect our emergent digital financial infrastructure, we are likewise updating our technology risk management guidelines to improve the resilience of bsp - supervised financial institutions against cyber - attacks. the monetary board recently approved the issuance of updated cybersecurity guidelines. payment systems continue to face increasing security threats and industry players need to step up. the string of regulations to improve technology risk management, together with consumer protection, even as we enable, digital payments are collectively aimed toward creating a stable environment for financial services and innovation. marketing, collaboration and cooperation are key as we offer peso net, communication to customers could be a challenge, because people are simply not familiar or used to electronic payments. every good product or service needs to be promoted. to reach a truly inclusive market, banks and non - banks must understand and connect to their target customers. you have to go out of your way to bring this to the people. messages that will appeal to their experiences and

nestor a espenilla, jr : disruptors, enablers and intended consequences message by mr nestor a espenilla, jr, governor of bangko sentral ng pilipinas ( bsp, the central bank of the philippines ), during the peso net launch, manila, 8 november 2017. * * * in the september issue of the asset, the cover depicted a caricature of me as a superhero with the blurb labeling me as a disruptor. i can only chuckle gamely at this obvious hyperbole. if there is a disruptor today, it is us, as we move collectively to radically change our fate. for the better. we know that the things cannot continue on “ business as usual ” and that great strides to level up, modernize, and innovate should be taken in this fast changing economic landscape. today we do just that. we launch the first automated clearing house ( ach ) under the national retail payment system ( nrps ). it is wonderfully disruptive to the existing status quo. it is innovative and it is expected to create new markets and add new value. today, we celebrate a milestone in our shared goal of having a safer, more efficient, affordable, and reliable payment system. today, we move closer to our objective of improving the retail payment system and creating a cash - lite economy.... indeed, we have made significant strides through constant and close dialogue and collaboration with you, our partners our partners in the industry, and with the other government agencies represented here. in a way, we have united as a proud disruptive league of our own. the secretary of finance carlos dominguez cannot join us today because he is on his way to vietnam. his proxy is still on his way. but let me acknowledge him – his strong support for our initiative, and the rest of government, my colleagues in the monetary board ; the chairman of philippine payments management, inc. ( ppmi ), mr. justo “ tito ” ortiz, the ppmi board members, i met all of them yesterday ; mr. jeffrey lehrer, director of the usaid office of economic development and governance, distinguished guests from the private business sector ; let me acknowledge specifically mr. domingo yap, the president of the filipino – chinese chamber of commerce and industry, friends from the banking community ; many of you here are represented by no less than your president / ceos. thank you for your support to this