E-money group vows to boost financial inclusion

MANILA, Philippines — Electronic money issuers in the country vowed to leverage technology to make digital financial solutions accessible to unbanked Filipinos, according to the Philippine e-Money Association (PeMA).

PeMa chairperson Martha Sazon said during the recent launch of the central bank’s National Strategy for Financial Inclusion (NSFI) the organization supports the drive of the Bangko Sentral ng Pilipinas (BSP) to boost financial inclusion in the country.

Sazon, who is also president and CEO of e-wallet giant GCash, said GCash continues to help the government in providing more inclusive financial services for all Filipinos.

GCash, with over 51 million users and 2.5 million merchants, helps unbanked Filipinos have access to safe and convenient digital financial solutions.

“GCash will serve as the primary catalyst for industry innovation and reduce disparities in access by delivering digital financial services across the country, especially to last-mile communities,” Sazon said.

PeMA was organized in 2017 to establish, maintain, and perpetuate mutual confidence, and close cooperation of non-bank electronic money issuers.

Under the Digital Payments Transformation Roadmap, the BSP aims to increase the number of Filipino adults with bank accounts to 70 percent and convert 50 percent of the country’s total retail transactions to electronic channels by 2023.

With the pandemic serving as catalysts, estimates showed that the share of digital payment to total retail transactions surged to 30 percent in 2021 from 20.1 percent in 2020 and only one percent in 2013.

Likewise, the number of Filipino adults with bank accounts went up to 53 percent as of the first quarter of 2021 from 29 percent in 2019.

GCash continues to help the government achieve a more inclusive financial ecosystem by offering seamless and safe digital financial solutions on the GCash app.

GCash users are able to access its many convenient payments functions, such as the pay bills and send money features. It also offers insurance via the GInsure feature, an online shop for essentials and more via the GLife feature, investments through GInvest, and savings accounts through the GSave feature.

Under the new NSFI, the BSP is targeting four key outcomes, such as reduced disparities in financial inclusion, improved health and resilience, more financially capable and empowered consumers, and increased access to financing by micro, small and medium enterprises (MSMEs), including start-ups and agriculture sector workers.

BSP Governor Benjamin Diokno said the NSFI 2022-2028 signifies the central bank’s greater collective commitment and aspiration for a more financially included and empowered Filipinos.

“The newly launched NSFI would be the country’s financial inclusion blueprint for the next six years,” Diokno said.