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National Strategy For Financial Inclusion: Background
National Strategy For Financial Inclusion: Background
Background
In 2016, the Bangko Sentral ng Pilipinas spearheaded the implementation of the National Strategy
for Financial Inclusion (NSFI). The Office of the President issued Executive Order (EO) No. 208
on June 2016 to institutionalize the Financial Inclusion Steering Committee (FISC), the governing
body that provides strategic direction, guidance and oversight in the NSFI implementation -
developed through a consultative process, serves as guidepost for public and private sector
stakeholders to systematically accelerate financial inclusion in the Philippines. The issuance of the
EO represents another milestone in the countrys efforts to establish a financial system that
benefits all Filipinos, particularly the unbanked and underserved, and thereby contribute to
inclusive growth and development.
FISC Functions
The FISC consists of government agencies that are instrumental in crafting and implementing the
NSFI. The current FISC consists of fifteen (15) government agencies. Heads of other agencies
may be invited as members when necessary.
Members:
The FISC consists of government agencies that are instrumental in crafting and implementing the
NSFI. The current FISC consists of fifteen (15) government agencies. Heads of other agencies
may be invited as members when necessary.
National Strategy for Financial Inclusion
An inclusive financial system is not only pro-growth but also pro-poor with the potential
to reduce income inequality and poverty, and promote social cohesion and shared
economic development. Financial exclusion, on the other hand, leaves the disadvantaged
and low-income segments of society with no choice other than informal options, making
them vulnerable to financial distress, debt, and poverty.
In 2014, the Philippines ranked first in Asia and top three in the world in terms of having
a conducive environment for financial inclusion according to the Economist Intelligence
Unit (EIU) maiden survey on financial inclusion environments globally. Despite these
significant gains, access to financial products and services remains an important challenge
especially in an archipelago comprising 7,107 islands with a population of more than 100
million people. This problem presents both a challenge and an opportunity to ensure
effective access and use of available financial products and services.
The National Strategy provides therefore a framework to enable the government and
the private sector to take a coordinated and systematic approach toward a financial
system that is accessible and responsive to the needs of the entire population toward a
broad-based and inclusive growth, particularly, to ensure that this financial system also
serves the traditionally unserved or marginalized sectors of the population.
1
based on several internationally accepted definitions set forth by entities such as the World Bank (WB), the
Consultative Group to Assist the Poor (CGAP), and the Asian Development Bank (ADB), among others.
2
Adapted from the Alliance for Financial Inclusion (AFI)
The National Strategy for Financial Inclusion shall foster creation of a robust financial
inclusion database that will encourage and support evidence-based policymaking, enable
progress monitoring and facilitate evaluation of financial inclusion initiatives. All the data
and measurement initiatives shall be pursued in line with the following strategic
objectives. This is where PSA plays a large role: