MANILA - The Bangko Sentral ng Pilipinas on Thursday reiterated the need to digitalize microfinance institutions (MFIs) to broaden the reach of financial services and boost the shift to online payments.
"The digital transformation of MFIs will help in transitioning microfinance clients from cash to digital transactions," BSP Governor Benjamin Diokno said in a forum.
It will also be a "significant push" for the BSP's digitalization roadmap, which aims to convert 50 percent of payments to digital, and get 70 percent of the country's adult population to have bank accounts by 2023, Diokno added.
Microfinancing has a sizeable footprint in the country, and mobile apps are also helping improve digital loan disbursements and online payments, he said.
Over 144 banks engaged in microfinance services has an estimated loan portfolio of P26 billion, the 2,762 cooperatives in the country have a total of P288 billion while the 4,450 non-government microfinance firms have a total loan portfolio of P50 billion, data showed.