Stepping down from the ivory tower

I still remember the first time I stepped inside the headquarters of the Bangko Sentral ng Pilipinas (BSP) as a journalist more than a decade ago.

The building seemed like a fortress, intimidating to a stranger with its strict, although courteous, security guards, closed offices and restricted areas.

It seemed like an ivory tower, but as a young reporter covering the BSP, I would soon realize that few institutions touch the lives of Filipinos as profoundly as the central bank.

On Friday, the BSP marks its 33rd anniversary and, its shortcomings notwithstanding, it deserves a toast for keeping inflation under control in an environment that has gone haywire, managing international reserves, supervising banks and performing other highly technical functions that were difficult for ordinary Filipinos to understand, much less appreciate.

Those responsibilities remain as important as ever. Every time the BSP acts to preserve price stability, strengthen the banking system or maintain confidence in the financial sector, it helps safeguard the economy and the welfare of millions of Filipinos.

I have covered several BSP governors, each with his own priorities and advocacy – from financial literacy to digitalization.

Perhaps that’s the reason why, over the years, the BSP has evolved from an institution that seemed to operate from its ivory tower to one that has stepped into the public square.

Today, it is not only a central bank that speaks the language of economists and bankers. It has increasingly become an institution that engages ordinary Filipinos through digitalization, financial inclusion and financial education – areas whose benefits can be felt in daily life.

As a side note, even Governor Eli Remolona Jr. regularly shares updates about the BSP’s work – and occasionally his own reflections – on his Facebook account.

Digitalization

Let’s talk about digitalization, for instance.

Did you know that in 2013, only about one percent of retail payments in the Philippines were done digitally?

By 2024, that figure had climbed to 57.4 percent.

The pandemic called for a swift shift, and the transition was possible because the BSP had created an environment that prepared banks for it.

What once seemed futuristic is now routine.

Filipinos now transfer funds, pay bills, purchase goods and send money through digital channels that are fast, convenient and secure. (The high fees, though, remain a challenge, but that’s a story I’ll save for another day).

I also discovered, belatedly, that digitalization has reached public transportation. I experienced it myself when I rode the MRT-3.

Through a joint initiative involving the BSP, the Department of Transportation and GCash, MRT-3 commuters can now pay fares by tapping their debit or credit cards or by scanning QR codes using their e-wallets. What may seem like a simple convenience is actually a glimpse of a more efficient future.

I remember what retired Globe president Ernest Cu said many years ago: our smartphones would eventually become our wallets. Now you see people using their phones to pay for their MRT rides. That’s technology at work.

Yet digitalization is not only convenient. It has also become a powerful tool for financial inclusion.

As of 2025, 85 percent of Filipino households already have a financial transaction account, up from 62 percent in 2022. Among adult Filipinos, account ownership has risen to 50 percent, more than double the level recorded a decade ago, data from the BSP showed.

Imagine that.

Even the friendly neighborhood taho vendor now uses e-wallets. So do the messengers and drivers we tap to send our packages or to take us from one place to another.

This is partly thanks to digital technology.

E-wallets have lowered barriers to opening accounts and accessing formal financial services. Meanwhile, programs such as Paleng-QR Ph Plus have brought digital payments and account ownership directly to public markets and transportation hubs across the country.

For market vendors and transport operators, the benefits are practical and immediate.

Digital payments eliminate the need to search for loose change or worry about receiving counterfeit bills. Payments are exact, efficient and easier to manage.

Financial education

But perhaps the BSP’s most important transformation lies in financial education.

In 2025 alone, BSP data show the central bank conducted 1,692 learning activities nationwide.

These sessions reached overseas-bound Filipinos, overseas Filipino households, teachers, uniformed personnel, micro-entrepreneurs and many others. Topics ranged from saving and investing to insurance and financial planning.

It is obvious that the BSP’s goal has evolved.

It is no longer focused solely on increasing access to financial services but is also increasingly focused on improving financial health.

The goal is to help individuals and households meet daily expenses, prepare for emergencies and invest in their future.

That is a goal every Filipino can understand.

At 33, the BSP remains committed to its traditional mandates. But its journey over the past three decades demonstrates that central banking has evolved and has brought the benefits of sound finance closer to the everyday lives of the Filipino people.

When I first walked into the BSP headquarters years ago, it felt like an imposing fortress, as I said. It seemed like an institution removed from the everyday lives of ordinary Filipinos.

Today, it has evolved into a public institution that understands that its work is not only to safeguard the economy but also to help people understand it.

That may well be the BSP’s most important transformation over the past 33 years.

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Email: [email protected]. Follow her on X @eyesgonzales. Column archives at EyesWideOpen on FB.