Financial inclusion is a state wherein there is effective access to a wide range of financial services for all. Effective access does not only mean that there are financial products and services that are available. These products and services must be appropriately designed, of good quality and relevant to benefit the person accessing the said service. Wide range of financial services refers to a full set of products such as savings, credit, insurance, payments and remittance services for different market segments, particularly those that are traditionally underserved or unserved.
Access to financial services is important for every household and business. Access to basic financial services such as savings, payments and credit can make a positive difference in people’s lives. Financial inclusion carries the potential of improving the well-being of the poor and the growth of micro, small and medium enterprises. In addition, greater financial inclusion can contribute to financial stability and economic development and is critical for achieving inclusive growth.
The BSP enables the development of an inclusive financial system by looking at a holistic approach based on four key areas:
Policy, Regulation and Supervision
The BSP ensures that an enabling policy and regulatory environment is in place through the issuance of various regulations conducive to financial inclusion. The general approach is characterized by openness to innovations and market-based solutions which can have a transformative role in expanding the scale and reach of financial services.
Financial Education and Consumer Protection
The BSP conducts activities aimed at increasing the financial literacy of various targeted audiences and ensuring that financial consumers are protected by issuing standards on disclosure and transparency, fair treatment, effective recourse and privacy of client information. The BSP believes that promoting financial education and consumer protection is a shared responsibility among financial institutions, the BSP and the financial consumers.
Advocacy efforts to promote financial inclusion help increase awareness, understanding and appreciation of financial inclusion. The BSP is highly involved in various projects and activities in partnership with other public and private sector stakeholders through local and international linkages.
Data and Measurement
There is a need to collect inclusion-relevant information to benchmark, monitor and assess progress. The BSP is stepping up efforts in developing a comprehensive financial inclusion data framework to identify existing gaps and opportunities, and inform evidence-based policy making.
Key Financial Inclusion Initiatives
Policy, Regulation and Supervision Initiatives
Financial Education and Consumer Protection Initiatives
Data and Measurement
Financial Inclusion Advocacy