BSP focuses on access, security concerns of bank customers

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) is now identifying the types of financial instruments to be covered by the reserve requirement ratio (RRR) for banks in light of the recent amendments to the charter of the central bank.

According to BSP Deputy Governor Chuchi Fonacier, the Bangko Sentral ng Pilipinas (BSP) together with stakeholders in the banking industry continue to address customer concerns including hacking, personal security breaches, and unsafe access that hamper the road towards greater inclusivity.

Chuchi Fonacier said the central bank continues to endeavor inclusive system as one where there are strong and vibrant institutions that could effectively and efficiently provide financial services to more people including those that were previously unserved by the financial system and those that remain unbanked. 

However, Fonacier said the road toward greater inclusivity is not a walk in the park. 

“Electronic platforms such as internet and mobile banking are constrained by the inadequate awareness and internet connectivity and customer hesitation due to issues such as hacking, personal security breaches and unsafe access,” Fonacier said.

According to her, the 2017 financial inclusion survey showed promising results as it displayed clear opportunities for greater financial inclusion enabled by digital technology. 

Interestingly, the same survey highlighted that convenience is the top consideration in choosing a channel for payment and remittance.

Fonacier said the formal launch of the ING Savings Account by Dutch financial giant ING Bank is another milestone in the Philippine financial system as it opens up massive opportunities for financial inclusion and digital innovation in the country. 

“The BSP highly welcomes this development as it presents an enormous potential in contributing to our advocacy of creating a truly inclusive financial system,” she said.  

Fonacier said the launch of ING Savings Account is timely and relevant as it could help accelerate the achievement of the National Retail Payment System (NRPS) goal to increase the share of electronic payments to 20 percent next year from one percent in 2013.

She said this would translate to higher economic growth, enhanced competitiveness of the economy, and improved value proposition for financial consumers. 

Likewise, the BSP has also issued regulations to democratize access to an account through the basic deposit account and create an expansive network of low-cost touch points through branch-lite units and cash agents, together with other key policy issuance and initiatives to promote digital finance. 

“Consumer protection, money laundering, electronic fraud and data privacy are among the issues that can undermine the confidence in this product that is available in the mobile- only platform,” Fonacier said.

She said the BSP is committed to establish a policy and regulatory environment that enables innovations to flourish while ensuring that the controls and safeguards are in place.