The BSP is involved in promoting advocacies that support the financial inclusion priorities set by the Financial Inclusion Steering Committee (FISC) of the National Strategy for Financial Inclusion (NSFI):
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Digital Finance Advocacy

The goal is to democratize access to a transaction account and make transaction accounts relevant and valuable not only for those who have money but also for anyone who needs to send and receive money conveniently and affordably. This necessitates the development of the digital finance infrastructure (digital-enabled market players, ubiquitous financial access points, and safe and efficient retail payments) and use cases for digital payments (bills payments, merchant acceptance, payment of government fees, and receipt of government welfare benefits).

• Use cases of transaction account - The BSP actively engages other government agencies to promote widespread use of a transaction account (i.e., bank or e-money account) for digital payments (e.g., social transfers, receipt of wages, payment for transportation, etc.), and to strengthen consumer trust in digital finance through financial and digital literacy and consumer protection policies.
  
  
• Support to the PhilSys – The BSP actively participates in the policy development and implementation of the Philippine Identification System (PhilSys) as a member of the PhilSys Policy and Coordinating Council. As the national digital ID system, PhilSys is a crucial enabler for financial inclusion with its potential to facilitate cost-efficient client onboarding and digital finance innovations.
  
  
• Capacity Building – The BSP works closely with development partners in identifying and providing strategic support to improve financial services for rural communities and other underserved sectors. Strategic support in the form of technical assistance and technology matching grant aims to capacitate both regulators and service providers, particularly on digital financial inclusion.

Agriculture and MSME Finance Advocacy

The lack of access to financing has long been a hindrance to the development of the country’s agriculture and MSME sectors. To this end, the BSP is addressing the perceived risks and supporting lenders’ capacity to deliver appropriate products to these sectors. Through the development of adequate financial and information infrastructure and appropriate lending frameworks, banks will be encouraged to lend to them.

• Promotion of Agri Value Chain Financing (AVCF) – The BSP issued Cir. No. 908 to promote AVCF as a sustainable financing approach and set the guidelines and incentives for banks engaged in AVCF. The BSP continues to increase the banks’ knowledge and awareness of the potential of AVCF as a viable business strategy and facilitate dialogue between agribusiness, value chain players and banks on market potential and financing opportunities in selected agriculture commodities.
  
  
• Credit Surety Fund (CSF) – The CSF is a surety cover issued by the CSF Cooperative that serves as a collateral substitute to facilitate access to bank financing by MSMEs and their cooperatives. As mandated by R.A. No. 10744 (CSF Cooperative Act), the BSP continues to spearhead the promotion of CSF creation and capacity building interventions for the CSFs and the Cooperative Development Authority (CDA) as regulator. (link to CSF webpage once updated)

• Legislative advocacies – The BSP actively advocates for legislative and market reforms to develop the critical financial infrastructure to promote private sector financing for MSMEs. This includes the secured lending framework and online collateral registries, warehouse receipt system, credit guarantee system, credit information system, and credit risk database, among others.
  
  
• Stakeholder partnerships – The BSP’s promotion of MSME finance include activities such as partnership with the DTI, MCPI and APPEND to develop a financing ecosystem for MSMEs by tapping the Negosyo Centers; regulatory incentives to promote MSME lending; and development of MSME data, among others. The BSP also actively participates in the MSME Development Council and various technical working groups on MSME.