Lower transaction fees alone will not be enough to bring more Filipinos into the formal digital financial system, Sen. Erwin Tulfo said Thursday, citing complicated account requirements, unreliable connectivity and concerns over fraud as other barriers to financial inclusion.
Tulfo said reducing or removing transaction fees could encourage more people to use digital payments, but would have limited impact on those who struggle to open accounts, understand banking applications or safely navigate digital platforms.
“Lower or even zero fees can certainly help encourage digital transactions, but they are only one part of the bigger picture,” Tulfo said in a news release.
He said financial services should be made “easy to enter, easy to understand, and easy to use,” particularly for first-time users and Filipinos who are less familiar with digital technology.
Tulfo urged digital and traditional banks, electronic wallet providers, financial technology firms, telecommunications companies and regulators to work toward a financial ecosystem that allows consumers to move money and access basic services without unnecessary barriers.
The senator acknowledged efforts by the Bangko Sentral ng Pilipinas to expand access to basic deposit accounts and digital payments but said financial inclusion should ultimately be measured by its impact on ordinary Filipinos.
Trust, he said, is also crucial to wider adoption of digital financial services.
“People will not embrace digital finance if they believe their money or personal information is unsafe,” Tulfo said.
He cited stronger safeguards against fraud, transparent disclosure of fees and charges, accessible customer support and effective complaint mechanisms as measures that could help build consumer confidence.
Tulfo also called for greater financial and digital literacy, simpler application interfaces and more reliable connectivity, particularly for people using online financial services for the first time.
He said the success of financial inclusion should not be measured solely by the number of accounts opened or digital transactions recorded.
Instead, he said, it should be based on whether Filipinos can use financial services to save money, receive payments, send funds, obtain responsible credit, secure insurance and manage their finances more effectively.
“If we can create a financial ecosystem with zero unnecessary barriers—not necessarily zero fees—we can bring digital finance closer to the people who need it most,” Tulfo said.
Photo courtesy of Inquirer.net
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