BSP pushes lower costs, easier access to services

To deepen financial inclusion

MANILA, Philippines — Lower transaction costs and easier access to financial services remain crucial to bringing more Filipinos into the formal financial system, according to the Bangko Sentral ng Pilipinas (BSP).

The central bank stressed that higher account ownership and digital payment use alone do not necessarily translate into meaningful financial inclusion.

In a statement, the BSP said affordability remains a major hurdle for Filipinos who have yet to adopt digital payments, citing surveys showing that cost is among the key reasons for non-use.

“True digital financial inclusion means ensuring that financial services are accessible, affordable, understandable and useful for all Filipinos,” the BSP said.

It added that studies have shown lower transaction fees can encourage greater use of digital payments, which the BSP considers an important gateway to other formal financial services.

As the most widely used financial service among Filipinos, digital payments can serve as an entry point to savings, credit, investments and insurance, according to the central bank.

However, the BSP stressed that lowering costs alone would not be enough to deepen financial inclusion.

“Account opening requirements, maintaining balances, connectivity, access points, financial and digital literacy, consumer trust, safety and ease of use can all affect whether Filipinos are able and willing to participate in the formal financial system,” it said.

To address these constraints, the central bank continues to promote basic deposit accounts, which require an opening amount of no more than P100 and carry no maintaining balance or dormancy charges.

The BSP has also pushed the expansion of interoperable digital payments, allowing users of different banks and financial service providers to transact more easily.

Beyond access, the central bank said financial and digital literacy would remain important in encouraging Filipinos to use formal financial services safely and confidently. Its initiatives include the BSP E-Learning Academy and other financial education programs alongside strengthened consumer protection measures.

The BSP also said greater competition among banks, e-wallets, financial technology firms and other providers could help give consumers more choices while improving service quality and affordability.

Still, the central bank said the ultimate measure of inclusion should be whether financial services improve households’ ability to manage their finances and withstand economic shocks.

“Access and usage are not ends in themselves. The broader goal is financial health,” the BSP said.

“Financial services should enable Filipinos to manage their day-to-day finances, save for their needs, access appropriate credit and insurance, withstand financial shocks, and build a more secure financial future,” it added.

As lead implementer of the National Strategy for Financial Inclusion, the BSP coordinates with government agencies and the private sector to remove barriers to financial services and ensure that broader access translates into tangible improvements in Filipinos’ financial well-being.