BSP in Focus: Governor Remolona on Digitalization

Summary

The transcript discusses the importance of increasing financial inclusivity by reducing the cost of money transfers and integrating e-money accounts into the formal financial system. It highlights the ease of obtaining loans and making investments once part of this system. The speaker mentions collaborative efforts with banks to lower fees and merge payment systems to achieve economies of scale, ultimately making financial services more affordable.

Takeaways

• 🚀 **Increased Speed**: The script emphasizes the importance of increasing the speed of financial transactions.
• 💲 **Reduced Costs**: There is a focus on lowering the cost of transferring money, which is crucial for financial inclusion.
• 🏦 **Formal Financial System**: Having a bank or e-money account integrates individuals into the formal financial system.
• 📈 **Next Steps**: Once in the formal system, it's easier to take further steps like getting loans or making investments.
• 🌐 **System Integration**: The script mentions merging parts of the payment system to improve efficiency.
• 📉 **Economic Scalability**: Scale economies are expected to result from system integration, leading to lower costs.
• 🤝 **Collaboration with Banks**: There is ongoing work with banks to ensure they lower fees as promised.
• 💼 **Banking Promises**: Banks have committed to reducing fees, which is a positive step towards financial inclusion.
• 🎵 **Music**: The mention of music suggests a positive or motivational tone to the message.
• 🌟 **Main Goal**: The overarching goal is to bring individuals into the formal financial system for better economic opportunities.

Q & A

What is the main goal of the efforts mentioned in the script?

The main goal is to bring people into the formal financial system by making it easier and more cost-effective to transfer money, get loans, and make investments.

How does having an e-money account help in the financial system?

Having an e-money account allows individuals to be part of the formal financial system, which facilitates the process of taking further steps such as obtaining loans and making investments.

What is being done to make transferring money more affordable?

Efforts are being made to lower the cost of transferring money by working with banks to reduce fees and merging parts of the payment system to create scale economies.

What is the significance of being in the formal financial system?

Being in the formal financial system provides access to banking services, credit, and investment opportunities, which are crucial for financial stability and growth.

What role do banks play in this initiative?

Banks are collaborating by promising to lower fees and work on improving the payment system to make financial transactions cheaper and more accessible.

How does merging parts of the payment system lead to cost reduction?

Merging parts of the payment system can lead to cost reduction by creating scale economies, which means that as the volume of transactions increases, the cost per transaction decreases.

What are scale economies and how do they benefit the financial system?

Scale economies refer to the cost advantage that arises when the scale of operation increases. In the financial system, this can mean that as more people use the system, the cost per transaction decreases, making services more affordable.

What are the potential benefits of lowering fees for financial transactions?

Lowering fees can increase the affordability and accessibility of financial services, encouraging more people to participate in the formal financial system and potentially leading to greater financial inclusion.

How does the script suggest that the financial system can be improved for the average person?

The script suggests that by lowering the cost of transferring money and making the financial system more accessible, it can be improved for the average person, allowing them to benefit from banking services and financial opportunities.

What is the relationship between the cost of transferring money and financial inclusion?

The cost of transferring money is directly related to financial inclusion. Lower costs can encourage more people to use formal financial services, thus increasing financial inclusion.

What is the ultimate aim of working with banks to lower fees?

The ultimate aim is to make financial services more affordable and accessible to a wider population, thereby promoting financial inclusion and economic growth.