Financial inclusion strategy gets World Bank nod

MANILA, Philippines - The World Bank lauded the efforts of the Philippines to develop a monitoring and evaluation system as it pursues financial inclusion that promotes shared economic development, upholds social cohesion, and reduces income inequality.

The National Strategy for Financial Inclusion (NSFI) launched in July last year by the Bangko Sentral ng Pilipinas (BSP) and other government agencies envisions a financial system that is accessible and responsive to the financial needs of all Filipinos, and provides a well-coordinated framework for public private coordination and cooperation as well as harmonization of efforts in financial inclusion.

“The Philippines has pioneered a unique approach to gather relevant data on activities, inputs and indicators to enable collaborative reporting by the various implementing agencies (of the NSFI),” the World Bank stated in the report.

The importance of data and measurement is clear in the National Strategy as it is the underpinning foundation of the other pillars of the NSFI namely policy and regulation, financial education and consumer protection, and advocacy.

This commitment to monitor progress and develop evidence-based programs and policies will ensure that efforts are indeed achieving the goal of expanding access to much needed financial services for the countries unserved and underserved sectors.

The BSP endeavored to define a practical and sustainable approach for monitoring and measuring progress of the NSFI implementation. Thus, the BSP, with the assistance of the World Bank, set up an appropriate and practical M&E System.

Apart from monitoring program implementation as well as national progress, the objective of the M&E system is to address data gaps and promote accountability of the government agencies involved in the NSFI implementation.

“The unprecedented level of collaboration for NSFI implementation is a good sign for future progress on improving financial inclusion in the Philippines,” the multilateral body added.

The central bank’s maiden National Baseline Survey on Financial Inclusion showed 25 percent of Filipino adults never saved, 32 percent used to save, and only 43 percent are saving.

The survey showed that only 32 percent of those with savings save in banks while 68 percent kept their savings at home.

On the other hand, about 65 percent of unbanked adults cited lack of money as the main reason. About 47 percent of adults survey has outstanding loans borrowed mainly form family, relatives or friends as well as from informal lenders.