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Remittances and FinancialInclusion: A Policy and

Regulatory ApproachPia Bernadette Roman Tayag

Head, Inclusive Finance Advocacy StafBangko Sentral ng Pilipinas

ADB orks!op on Promoting Remittances"or Development Finance

#$ %arc! &'#(%andaluyong )ity

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*olume o" Remittances

US$ Billion

• Remittances c!anneled t!roug! t!e +anking system in &'#reac!ed -S.&/0 +illion, or $/(1 o" 2DP

• Remittances continue to +e a ma3or stimulant o" domestic

Source4 BSP

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 Total cas! remittance o" 5F during t!e past 6mont!s +y mode o" remittance

Source4 PSA, Survey on 5verseas Filipinos &'#0A rider 7uestionnaire to 5cto+er 8a+or Force Survey every year/ Pro+a+ility sample o" #,''' !ouse!olds/ Time

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Remittances: A Doorway to Inclusion?

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Remittances and Savings

OFs

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Remittances and Savings

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!et!er or not 5Fs !ave savings"rom cas! remittance sent

N = OFs who remit cash

1 o" cas! remittance set aside "orsavings

N = OFs who have savings from cash remittance sent

Source4 PSA, Survey on 5verseas Filipinos &'#0A rider 7uestionnaire to 5cto+er 8a+or Force Survey every year/ Pro+a+ility sample o" #,''' !ouse!olds/ Timere"erence is past si9 mont!s

Remittances and Savings: Opportunitiesand Challenges

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Remittances and Savings: Opportunitiesand Challenges

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hat is !nancial inclusion?

• A state :!erein t!ere is e"ective access to a wide

range o# !nancial services "or all Filipinos

-nserved and -nderserved

;%S%

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Financial Inclusion $oward Inclusive%rowth

House!old 8evel

;Allo:s HH tosei>eopportunitiesand manages!ocks;Increase inoutput and

productivity

;A+le to mo+ili>e

+road +asedsavings andinvest in gro:t!o" productivesector;Deep and

diversi=ed=nancial systemcontri+utes to=nancial sta+ility

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Access and Products:Policy and Regulatory

Approach

Policyand

Regulation

Financial&ducation and

ConsumerProtection

Advocacy

&nhanced Internal Capacity and Comprehensive DataFramewor' 

Initiatives #or FinancialInclusion

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idened range o# products

%icrodeposit%icroenterprise loan

%icro=nance plus%icro?agri loan

Housing micro=nance%icroinsurance

&(panded virtual reach

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Housing Microfinance

P!p 0 %

Micro-Agri Loan

P!p &' %

Microenterprise Loan

P!p /$ B

Microfinance Plus

P!p %

# +anks :it! micro=nance operations currentlyserving #/& million clients :it! outstanding

port"olio o" P!P / +illion/

*As of end-Sept 201

161 banks 2 banks 2! banks 1" banks

Products - hat can *e accessed *y OFsand *ene!ciaries

MicroinsuranceMicrodeposit

P!p 0/$ B#/ millionaccounts

"2 banks # banks

& millioncovered

individuals

P d t h t * d * OF d

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* Highest microinsruance coverage among nine Asian countries, Munich Re Foundation

Products - hat can *e accessed *y OFs and*ene!ciaries

Access 4icro 5an'ing O6ces 745Os8

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./0 %B5s operating in 12. municipalities

32 municipalities are served +y %B5salone

Allo:ed to purc!ase "oreign currency upto t!e ma9imum e7uivalent o" -SD0''per client per day "or credit to micro?

deposit accounts

Access - 4icro 5an'ing O6ces 745Os85ringing Service Points Closer to OFs and5ene!ciaries

Access &lectronic 4oney &cosystems

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Access - &lectronic 4oney &cosystems5ringing Service Points Closer to OFs and5ene!ciaries

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P!ilippines

 #,60 municipalities& million Filipinos

it! ,0( +anking o@ces,

01 o" t!e cities andmunicipalitiesC#(1 o" t!e population

 are un+anked

it! t!e addition o" over

',''' access pointsCofsite AT%s, EBFIs, creditcooperatives, pa:ns!ops, money

c!angers, remittance agents, e?moneyagents

only #01 o" t!e cities andmunicipalities

C1 o" t!e populationremain unserved

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9ational Strategy #or Financial Inclusion

*oor)ination

+r,st b,il)ing

-aising awareness

an) ,n)erstan)ing

 To:ard a common visionand clearly de=ned

inclusive !nancialsystem

$he overall vision is a %nancialsystem that is accessible andresponsive to the needs of the

entire population toward a broadbased and inclusive growth& 'n particular, to ensure that this

%nancial system also serves thetraditionally unserved or

marginalied sectors of the

 population& $his vision should beguided by a focus on the client&

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