BSP supports and promotes the digitalization of MFIs to help them recover from the pandemic.
Bangko Sentral ng Pilipinas (BSP) Governor Felipe M. Medalla said the BSP is promoting targeted digitalization measures to guarantee that microfinance institutions continue to recover from the pandemic.
He said this during the 2022 annual conference of the Microfinance Council of the Philippines, Inc. (MCPI) as he cited Paleng-QR, an interagency program aimed at expanding QR payments among small merchants, as well as ongoing attempts to build a basic merchant account framework and satellite technology testing for two rural banks in Batangas.
These are the efforts that the BSP is doing in digitalizing the MFIs.
As of 2021, MFIs are showing signs of recovery, having a loan growth of up to 4.1 percent following a 2.50 contraction in 2020. Repayment figures also rebounded back to 84 percent in February 2021 from 56.5 percent in the second quarter of 2020.
“It’s hard to think of financial inclusion without looking at microfinance,” Medalla said.
“I’m glad to hear that you consider the BSP as your number one ally. From our point of view, you are also a very important ally of the BSP.” He added.
The pandemic has restricted the physical contacting of clients, making financial institutions think of ways to still be convenient and effective to everyone, hence the digitalization measures that BSP is supporting.
Even now with the ongoing recovery of the country, digitalized processes have helped many clients due to the convenience and safety that they provided. As long as there is a strong digital framework supporting these measures, MFIs can recover steadily from the pandemic.
Tags: #MFIs, #BSP, #Digitalizattion, #Recovery