The government of the Philippines recently acted to reduce regulatory barriers to companies such as internet service providers and financial technology (fintech) firms looking to use satellite systems to reach customers and their own staff in rural areas and during natural disasters. Benjamin Diokno, Governor of Bangko Sentral ng Pilipinas (BSP), reportedly said, “With enhanced access to satellite broadband services, financial institutions can improve their disaster recovery plans as part of their resilience strategy…. They will also be able to set up more access points, such as branch lite operations, ATMs [automated teller machines], and cash agents in underserved areas.” For example, Cantilan Bank, on the Philippine island Mindanao, used satellite technology to maintain operations in the aftermath of Typhoon Odette.
Established under the New Central Bank Act of 1993, Bangko Sentral ng Pilipinas is tasked with traditional central banking activities as well as advocacy programs concerning microfinance, financial education and consumer protection. As of December 2020, BSP reported total assets of PHP 7 trillion (USD 136 billion).
By Sheen Gupta, Research Associate
Sources and Additional Resources
ABS-CBN article
https://news.abs-cbn.com/business/03/22/22/bsp-backs-use-of-satellite-technology-for-financial-inclusion-disaster-resilience
BSP homepage
https://www.bsp.gov.ph
BSP 2020 annual report
https://www.bsp.gov.ph/Pages/MediaAndResearch/PublicationsAndReports/AnnualReport.aspx
Executive Order No.127 webpage
https://www.officialgazette.gov.ph/2021/03/10/executive-order-no-127-s-2021/
Previous MicroCapital article on BSP
https://www.microcapital.org/microcapital-brief-bsp-promoting-e-money-usage-financial-access-in-the-philippines-via-digital-payments-transformation-roadmap-2020-2023/
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