Leveraging on Fintech Innovations for Financial Inclusion
FRANCISCO G. DAKILA, JR.Deputy Governor
Monetary and Economics Sector
5th Annual Public Policy Conference“Navigating the New Globalization: Local Actions for Global Challenges”September 19, 2019, Sofitel Philippine Plaza Hotel, Manila, Philippines
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Benefits
• Lower costs
• Greater accessibility
• Increased speed, efficiency and convenience
• May lead to more stable credit environment
Risks
• Concerns in consumer protection
o Loss of funds
o Improper use of personal data
• Possible use for money laundering and terrorist financing purposes
Weighing the benefits and risks
Fintech is likely to have a greater impact through key transformational mechanisms…
Source: DTCC: “Fintech and Financial Stability” (October 2017)
Implications on the Financial System (Banks)
Disaggregation of financial services
Disintermediation of incumbents
Decentralization of networks
Test-and-Learn
Approach
BSP Regulatory Framework – Striking the Right Balance
Allow for market to develop
Proceed with flexibility yet with
caution
Understand operating/business
model
Adopt appropriate regulatory approach
Closely monitor developments and
related issues
(3) Consumer Protection
Network Building through Coordination and Cooperation
Financial Sector Forum (FSF)FinTech Committee
Domestic Level Regional Level
FinTech Collaboration Agreement
Promoting Financial Inclusion
Source: BSP
Adoption of RegTech Solutions
API System
Automated Complaint-Handling Portal
(Chatbot)
FI Portal
National Retail Payment System (NRPS)
NRPS is a policy and regulatory framework that aims to establish a safe, efficient,reliable, affordable and inclusive retail payment system in the Philippines.
Key Messages
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1. Commensurate regulations to promote innovations and competitions while mindful of consumer protection issues and financial stability risks;
2. Collaborative engagements with stakeholders to create synergy and sustainable long-term partnership;
3. Capacity building to protect/retain institutional knowledge assets, coupled with upgrading network hardware and software infrastructure to protect against cybersecurity threats.
Leveraging on Fintech Innovations for Financial Inclusion
FRANCISCO G. DAKILA, JR.Deputy Governor
Monetary and Economics Sector
5th Annual Public Policy Conference“Navigating the New Globalization: Local Actions for Global Challenges”September 19, 2019, Sofitel Philippine Plaza Hotel, Manila, Philippines
