MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has kicked off the test deployment of satellite internet services in two rural banks as part of the government’s broader efforts to promote access to financial services in remote areas.
In partnership with the Philippine Space Agency (PhilSA) and Department of Science and Technology-Advanced Science and Technology Institute (DOST-ASTI), the central bank has started test deploying satellite internet service provider (ISP) iOne Resources Inc. at the Progressive Bank of Malvar and Rural Bank of Cuenca.
The test deployment in two rural banks located in geographically isolated and disadvantaged areas (GIDA) in Batangas City aims to evaluate the performance and reliability of satellite internet services under local weather conditions.
Internet connectivity in some parts of the country remains a challenge due to the limitations of existing network and telecommunication facilities.
“We believe in the capability of satellite technology to enhance connectivity in rural areas, thereby expanding the capacity of banks to provide digital financial services and promote greater financial inclusion in unserved and underserved areas,” BSP Governor Felipe Medalla said.
Latest data from the central bank showed that 33 percent or 533 of 1,634 municipalities in the country still do not have bank branches operating within their areas.
The BSP had earlier expressed its support for Executive Order 127, signed by former president Rodrigo Duterte in March last year that aims to expand access to satellite systems to boost internet access and connectivity, especially in rural communities.
Under its Digital Payments Transformation Roadmap, the BSP aims to raise the number of Filipino adults with bank accounts to 70 percent and convert 50 percent of total retail transactions to electronic channels by 2023.
Due to various initiatives, the number of banked Filipino adults has increased to 53 percent from 29 percent, while the share of digital payments to total retail transactions rose to 30.3 percent from 20.1 percent.